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RESTAURANT RESERVATION MANAGEMENT CONSIDERING TABLE COMBINATION

Authors
  • Miao, Qing
  • Li, Yihua
  • Wang, Xiubin B.
Publication Date
Apr 01, 2018
Source
Scientific Electronic Library Online - Brazil
Keywords
Language
English
License
Green
External links

Abstract

ABSTRACT This paper presents a case study of table reservation practice for restaurant business within Walt Disney World. A unique feature here is to consider table combination to capture revenue potentials from different party sizes and at different time periods. For example, a party of large size can be served by combining two or more small tables. A mixed integer programming (MIP) model is developed to make the reservation recommendation. We propose a rolling horizon reservation policy such that the value of a particular table is periodically evaluated and updated. This is a typical revenue management method in the airlines and other industries, the essence of which is to compare the future expected revenue with a currently offered price. Using historical data, numerical test shows a significant revenue improvement potential from our proposed model.

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