Capacity management for hospitality and tourism: A review of current approaches

Abstract In this article we provide a review of current capacity management approaches applicable to hospitality and tourism enterprises. While many of the traditional methodologies involve closed-form analytical calculations, newer methods have been developed that address more complex problems. These more recent methods include the creative use of mixed models such as those that integrate visitor-preference and operations-research models, linear programming, and simulation models. We consider the full range of methodologies, the advantages and disadvantages, and potential applications to both physical and human capacity estimation. We highlight the ways that various leisure industries can benefit from different approaches to capacity management.