Ordinal Optimization Based Algorithm for Hotel Booking Limits Problem

In this paper, a two-stage algorithm based on ordinal optimization (OO) theory is proposed to solve the booking limits problem with huge discrete solution space. First, a crude model with a small amount of simulation replications is used as a fitness evaluation in particle swarm optimization (PSO) algorithm to select N candidate solutions from solution space. Starting from the selected N candidate solutions, we then proceed with the optimal computing budget allocation (OCBA) technique to search for a good enough solution. The vector of good enough booking limits obtained by the proposed algorithm is promising in the aspects of solution quality and computational efficiency.