Using a major hotel chain's 16-month booking data, we empirically investigate the existence and extent of strategic customers in the context of standby upgrades, a popular program offering availability-based, discounted premium-room upgrades. Customers, in particular loyalty members, may become...

Estimating customer demand for revenue management solutions faces two main hurdles: unobservable no-purchases and non-homogenous customer populations with varying preferences. We propose a novel and practical estimation and segmentation methodology that overcomes both challenges simultaneously....