Demand and revenue management are critical to achieving financial success in the competitive airline industry. This article examines the optimal allocation of available seats to different classes of airfare and provides hypothetical and numerical examples that illustrate the mathematical models.
Get full access to this article
View all access options for this article.
References
1.
BelobabaP. Peter (1987). “Air Travel Demand and Airline Seat Inventory Management.” Report FLT-R878. Cambridge, MA: Flight Transportation Laboratory, Massachusetts Institute of Technology.
2.
BelobabaP. Peter (1989). “Application of Probabilistic Decision Model to Airline Seat Inventory Control.”Operations Research, March-April: 183–97.
3.
BelobabaP. PeterWilliamsonElizabeth L.MartinB. A. (1989). “Comparison of Yield Management Methods for Flight Leg and O-D Control.” Airlines Group of International Federation of Operational Research Societies Annual Symposium, Chicago.
4.
Boeing Commercial Airplane Company (1983). “A Pilot Study of Seat Inventory Management for a Flight Itinerary.”U.S. and Canadian Airline Analysis. February 24, Renton, WA.
5.
JamesGeorge (1988). “The Critical Importance of Airline Revenue Enhancement: A U.S. View.” Airlines Group of International Federation of Operational Research Societies Annual Symposium, Cape Cod, MA.
6.
SmithB. C.PennC. W. (1988). “Analysis of Alternate Origin Destination Control Strategies.”Airlines Group of International Federation of Operational Research Societies Symposium Proceedings, vol. 28, October, pp. 123–44.
7.
SpillerP. T. (1981). “The Differential Inputs of Airline Regulation on Industry, Firms, and Market.”Journal of Law and Economics, 24: 655–84.
8.
U.S. Department of Transportation (1991). Air Travel Consumer Report, Office of Consumers. Washington, DC: Government Printing Office.
9.
VasighBijanHamzaeeR. G. (1996). “Airline Revenue Management: Review and Analysis.”Kentucky Journal of Economics and Business, 15: 97–112.
10.
WilliamsonE. L. (1988). “Comparison of Optimization Techniques for Origin-Destination Seat Inventory Control.” Report R88–2. Cambridge, MA: Flight Transportation Laboratory, Massachusetts Institute of Technology.
11.
WilliamsonE. L. (1992). “Airline Network Seat Inventory Control: Methodologies and Revenue Impacts.” Report FLT-R92–3. Cambridge, MA: Flight Transportation Laboratory, Massachusetts Institute of Technology.
12.
WilliamsonE. L.BelobabaP. P. (1988). “Optimization Techniques for Seat Inventory Control.”Airlines Group of International Federation of Operational Research Societies Annual Symposium Proceedings, pp. 153–70.
13.
WollmerRichard D. (1986). “An Airline Reservation Model for Opening and Closing Fare Classes.”McDonnell Douglas Corporation, Long Beach, CA, pp. 1–6.
14.
WollmerRichard D. (1992). “An Airline Seat Management Model for a Single Leg Route When Lower Fare Classes Book First.”Operations Research, 40 (1): 26–37.
