What is an algorithm?
Algorithms are everywhere and guide us through life at work as well as in our free time. Here's why we can learn a lot from the data we produce.
What is an algorithm — the term algorithm simply defined
In general terms, an algorithm is a clear rule of action for solving a problem or several problems. A finite number of individual steps form a solution plan. The algorithm contains instructions that must be followed step by step in order to achieve the goal — solving the problem. Algorithms can be incorporated into computer programs, which is then like a calculation process according to a specific scheme that can be repeated. In these individual steps, input data is converted into output data. However, algorithms can also be formulated in human language. In any case, the steps are clearly formulated so that they are always executed in the type and order that is intended.
Algorithms in everyday life
We encounter algorithms in many things every day. Some of them are even really famous.
Google search engine: The results of a Google search are output via PageRank-Algorithm. In doing so, he checks the website results for relevance to the request.
Navigation devices: Various algorithms are used here. For example, there is the shortest path algorithm — it finds the fastest route taking into account traffic jams, traffic volume, etc.
Traffic lights: Here, circuit instructions regulate the red, yellow and green phases.
Cooking recipes, laws and contracts, and assembly instructions also represent a subset of algorithms.
Classification of algorithms by class
Algorithms are divided into classes. There are various features, such as:
• After Complexity: Distinction according to space and time complexity
• After Problem statement: Decision vs. optimization algorithm
• After Proceedings: Approximation Algorithm, Dynamic, Probalistic, or Evolutionary Algorithm, Greedy Algorithm
• After Machine capability: deterministic or non-deterministic, quantum mechanical or randomized (Las Vegas, Monte Carlo, Latin Hypercube)
happyhotel — “our” algorithm
We also use a special algorithm, in our case a machine learning algorithm, of course.
With this algorithm, we calculate the maximum willingness to buy a room price at a specific time and taking into account the respective demand. Our calculation includes the booking curve, booking speed and occupancy as well as the day of the week or regional events.
So can our software draw insights from the past and thus predict demand and adjust the price for individual days: When demand is high, the price rises and vice versa. The aim is to absorb demand before it arrives: Our focus is on the future. Accordingly, hoteliers can raise their prices before there is strong demand.
We therefore offer Revenue Management for small and medium-sized hotels as well as small hotel chains. By calculating optimal, dynamic room prices, we maximize revenue for hoteliers. This offers the opportunity to make more profit. We also offer a comprehensive reporting system, for example for RevPAR and ADR.
and convince yourself
Forget manual price adjustments. With happyhotel, you can maximize your income without constantly checking prices.
