Optimal hotel segmentation mix strategy

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


A model for the selection of the optimal mix of market segments (the total number of market segments and the specific market segments included) of a hotel is suggested. It is evaluated for a given set of potential market segments, when the individual demand curves are known in each segment. The problem is formulated as an efficient single state-variable Dynamic Programming model. It is suggested that the derived static results should be the optimal strategy to be used (instead of unfounded management directives) as input to tactical yield management policies in stochastic environments. A numerical example is provided for a 400-room hotel.

Original languageEnglish
Pages (from-to)18-27
Number of pages10
JournalInternational Journal of Services, Technology and Management
Issue number1-2
StatePublished - 1 Jul 2001


  • Dynamic programming
  • Hotel management
  • Market segmentation
  • Number of segments
  • Pricing policy
  • Segmentation mix
  • Yield management

ASJC Scopus subject areas

  • Marketing
  • Strategy and Management
  • Computer Science Applications
  • General Engineering


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