Optimal yield policy with infiltration consideration

Shaul P. Ladany, Fee Seng Chou

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


An integer programming model is formulated for determining the optimal market segmentation and pricing policy for fixed-capacity service industries to maximize their yield, given a set of defined potential market segments with known demand curves. The model incorporates infiltration of customers from high priced to low priced market segments. Using a real-lifesize numerical example from a hotel management environment, the model was solved by easily accessible spreadsheet software on a personal computer.

Original languageEnglish
Pages (from-to)4-17
Number of pages14
JournalInternational Journal of Services, Technology and Management
Issue number1-2
StatePublished - 1 Jul 2001


  • Infiltration between segments
  • Market segment
  • Optimal number of segments
  • Yield management

ASJC Scopus subject areas

  • Engineering (all)
  • Computer Science Applications
  • Strategy and Management
  • Marketing


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