Oracle Corporation
Discrete Choice Hotel Room Demand Model

Abstract:

Embodiments model the demand and pricing for hotel rooms. Embodiments receive historical data regarding a plurality of previous guests and generate a multinomial logit ("MNL") model with demand shock variables, the demand shock variables expressed using MNL utility parameters. Embodiments estimate the MNL utility parameters using a likelihood maximization and determine demand shock parameters using the estimating the MNL utility parameters. Embodiments then predict a future demand of the hotel rooms based on the demand shock parameters.