The Determination of the room through dynamic programming model

Ill THE DETERMINATION OF THE ROOM RATE THROUGH DYNAMIC PROGRAMMING MODEL Dönüş SARIŞK ÇİÇEK Tourism And Hotel Management Department Social Sciencies Institution, Anadolu University, June 2000 Advisor: Prof. Ali KARTAL Turkey has got the % 1.3 percent of the world tourism market with its increasing room capacity and tourism income, and it is the 19th one among the countries which accept tourist. However, such a development has led the country to a hard competitive situation surrounded by changing environmental conditions. The present situation displays that the owners of the properties, who try to determine the room rates in accordance with the neighbour properties rates or rent their properties to the tour operators because of the uncertain future conditions, The room rates seem to be determined by the tour operators rather than the management of the properties themselves, one of the reasons this is the uncertain future conditions which lead the owners to rent their properties to the tour operators. The other reason is the vogue policies that the hotel owners follow, such as determining the room rate in accordance with the neighbour properties. In such a competition environment, the properties are not able to determine a consistent and progressive room rate policy because of both external and internal factors. The aims of this study are two fold; One is to analyse the process of the room rate determination. Second is to determine the room rate which can provide the highest rank of income through in the application of the Dynamic Programming Model, which is one of the OHAL research approaches. Chapter One describes the process of room rate determination. Chapter Two presents Dynamic Programming Model. Chapter Three presents the application of Dynamic Programming Model and its results on the room rate determination.