Optimal Decision of Reservation Policy for Private Parking Sharing System

Abstract

Private parking sharing system is one of the alternatives ways in urban areas related to reducing congestion, pollutions and resource dependency. In order to attract people to share their parking lot is by maximizing the revenue. This paper analyzes a reservation policy of revenue management system to maximize revenue in private parking sharing system. The strategy is by developing a policy to accept or reject booking arrival. We propose Expected Revenue Gap as a booking acceptance policy and compare with the First Come First Serve. We also compare the result with the deterministic case after all the demand known to the end of time horizon. We use the deterministic linear programming to solve the upper bound of optimum policy. Based on the simulation result, Expected Revenue Gap can improve the revenue more than First Come First Serve but less than the optimum policy under deterministic linear programming.