Nash Equilibrium

If n is the number of competitors and s(i) is the number of strategies that every competitor can develop, we reach the Nash equilibrium when the strategy adopted by every competitor is the best answer to the others’ strategies.   EXAMPLE Suppose that there are...

Negotiated Rates

Special rate, lower than usual. Offered by the facility to an agency/consortium/company in exchange for a higher volume of business. It may not be modified without a (renegotiated) agreement between the two parties.

Nested Booking Limit – NBL

A method to check inventory sales based on subdivision of yield classes, which are included in one another according to their contribution. This system is commonly called “Russian dolls”. The availability of a yield class with a higher contribution level is always...

Nesting

Process that allows the optimization of revenue, a concept fundamental to Revenue Management. It uses segmentation, as suggested by marketing, to group clients depending on their WTP. By optimizing each segment, identifying the inventories for each, it allows the...

Net Circulating Capital

Balance sheet entry composed of working capital (itself composed of all those active elements that are liquid or liable to become liquid within, usually a year) from which are subtracted current liabilities (e.g. short-term debt). Net circulating capital is an index...

Non Last Room Availability – NON-LRA

Unlike the LRA this type of Corporate contract provides for the possibility to limit availability even if there is still actual inventory availability