An Integrated Approach to Single-leg Airline Revenue Management
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Published: 2006
Total Pages: 22
ISBN-13:
DOWNLOAD EBOOKRead and Download eBook Full
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Published: 2006
Total Pages: 22
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DOWNLOAD EBOOKAuthor: S. Ilker Birbil
Publisher:
Published: 2013
Total Pages: 26
ISBN-13:
DOWNLOAD EBOOKIn this paper we introduce robust versions of the classical static and dynamic single leg seat allocation models as analyzed by Wollmer, and Lautenbacher and Stidham, respectively. These robust models take into account the inaccurate estimates of the underlying probability distributions. As observed by simulation experiments it turns out that for these robust versions the variability compared to their classical counter parts is considerably reduced with a negligible decrease of average revenue.
Author: Curt Cramer
Publisher: Springer Nature
Published: 2021-11-10
Total Pages: 122
ISBN-13: 3658337214
DOWNLOAD EBOOKThe book provides a comprehensive overview of current practices and future directions in airline revenue management. It explains state-of-the-art revenue management approaches and outlines how these will be augmented and enhanced through modern data science and machine learning methods in the future. Several practical examples and applications will make the reader familiar with the relevance of the corresponding ideas and concepts for an airline commercial organization. The book is ideal for both students in the field of airline and tourism management as well as for practitioners and industry experts seeking to refresh their knowledge about current and future revenue management approaches, as well as to get an introductory understanding of data science and machine learning methods. Each chapter closes with a checkpoint, allowing the reader to deepen the understanding of the contents covered.This textbook has been recommended and developed for university courses in Germany, Austria and Switzerland.
Author: Laila Haerian
Publisher:
Published: 2007
Total Pages: 179
ISBN-13:
DOWNLOAD EBOOKDynamic programming (DP) is one of the most powerful tools for finding the optimal booking policy for capacity control of a single leg flight. However, the extension of it to a network of flights is impractical due to the exponential growth of the size of the model with number of legs in the network. In this work we develop and use an approximate DP model to find the optimal protection levels on a single leg flight and extend it to a network of flights as well. We develop a Markov chain to calculate the expected revenue that is generated under implementation of a fixed policy at each stage of the approximate DP model and for any remaining capacity and then search for the optimal policy. We use large time chunks in the proposed DP model to decrease the computational effort and show that the resulting expected revenue converges to the expected revenue that is generated under implementation of the original DP approach. Unlike many of the existing models, in our proposed method, nesting is incorporated into the optimization procedure. Furthermore, by using the proposed Markov chain model, the expected generated revenue can be calculated directly and without using simulation.
Author: Ben Vinod
Publisher: Springer Nature
Published: 2021-05-28
Total Pages: 417
ISBN-13: 3030704246
DOWNLOAD EBOOKThis book chronicles airline revenue management from its early origins to the last frontier. Since its inception revenue management has now become an integral part of the airline business process for competitive advantage. The field has progressed from inventory control of the base fare, to managing bundles of base fare and air ancillaries, to the precise inventory control at the individual seat level. The author provides an end-to-end view of pricing and revenue management in the airline industry covering airline pricing, advances in revenue management, availability, and air shopping, offer management and product distribution, agency revenue management, impact of revenue management across airline planning and operations, and emerging technologies is travel. The target audience of this book is practitioners who want to understand the basics and have an end-to-end view of revenue management.
Author: Emrah Ozkaya
Publisher:
Published: 2002
Total Pages: 90
ISBN-13:
DOWNLOAD EBOOKThis thesis studies a well-known problem in the airline industry, namely, the seat-allocation problem in a single leg of an airline flight. The problem studied considers random arrivals, cancellations, no-shows, multiple fare classes, and overbooking. A simulation-based approach using simultaneous perturbation and simulated annealing was used to solve the problem. The performance of these techniques was benchmarked with a widely used heuristic, namely, expected marginal seat revenue heuristic. The results obtained show that the simulation-based optimization approach can outperform the heuristic approach.
Author: Sanne Vincent de Boer
Publisher:
Published: 2003
Total Pages: 168
ISBN-13:
DOWNLOAD EBOOK(Cont.) We propose several approaches for dynamic picing and resource allocation. Numerical experiments suggest that coordination of pricing and resource allocation policies in a network while taking into account the uncertainty of demand can lead to significant revenue gains. Finally, in our conclusions we propose an integrated approach to airline revenue management that combines all four aspects that we studied here, and suggest directions for future research.
Author: Rainer Hoffmann
Publisher: KIT Scientific Publishing
Published: 2014-05-12
Total Pages: 238
ISBN-13: 3731500035
DOWNLOAD EBOOKThis book studies air cargo capacity control problems. The focus is on analyzing decision models with intuitive optimal decisions as well as on developing efficient heuristics and bounds. Three different models are studied: First, a model for steering the availability of cargo space on single legs. Second, a model that simultaneously optimizes the availability of both seats and cargo capacity. Third, a decision model that controls the availability of cargo capacity on a network of flights.
Author: Christian Temath
Publisher:
Published: 2011
Total Pages: 220
ISBN-13:
DOWNLOAD EBOOKErfolgsmessung ist ein integraler Bestandteil jedes Revenue Management (RM)-Systems. Das Revenue Opportunity Model (ROM) ist ein bekanntes Verfahren zur Erfolgsmessung. Bei der Anpassung des ROM an die wesentlichen Entwicklungen des RM insb. die Entwicklung von Einzelflug-basierter zu Netzwerk-basierter RM Steuerung und der Übergang von unabhängiger zu abhängiger Nachfrage - gewinnt die Frage der Anwendbarkeit und insb. der Validität des ROM an Bedeutung. Wir modellieren unabhängige und abhängige Nachfrage in einem Netzwerk-basierten ROM und untersuchen seine wichtigsten Eigenschaften. Darüber hinaus betrachten wir verschiedene praktische Aspekte des RM einer Netzwerk-Fluggesellschaft und untersuchen die Aufsplittung der aggregierten Kennzahlen des Netzwerk-basierten ROM auf einzelne Flüge und auf einzelne Komponenten des RM. Wir stellen einen neuartigen simulationsbasierten Ansatz zur Untersuchung des ROM vor insb. der Robustheit gegenüber Fehlern in der unbeschränkten Nachfrageschätzung. Das in der Simulationsumgebung verwendete RM-System spiegelt alle wesentlichen Komponenten und RM-Methoden wider, wie sie von einer Netzwerk-Fluggesellschaft verwendet werden, insb. hinsichtlich Prognose- und Optimierungsmodellen. Bei realistischen Eingabedaten erweist sich das Netzwerk-basierte ROM, sowohl mit unabhängiger als auch mit abhängiger Nachfrage, als robust gegenüber Fehlern in der unbeschränkten Nachfrageschätzung. Darüber hinaus ist eine Aufsplittung der ROM Kennzahlen auf einzelne Flüge möglich. Allerdings zeigt sich das ROM auf Einzelflugebene weniger robust. Weiterhin wird ein Ansatz vorgestellt, der den Beitrag von Überbuchung, Upgrading und Tarif-Mix aus dem Gesamterfolg isoliert. Insbesondere erweisen sich die ROM Kennzahlen für Überbuchungen und Upgrading als sehr robust.. - Techniques for performance measurement are an integral part of a revenue management (RM) system. The Revenue Opportunity Model (ROM) is a widely known method to measure revenue management performance. While adapting the ROM to recent developments of revenue management science - i.e. the advancement from leg-based to network-based RM controls and the recent transition from independent to dependent demand structures - the question of applicability and in particular the validity of the ROM have become increasingly important. In this thesis we model both independent and dependent demand structures in a network-based ROM and investigate its main properties. Furthermore, we consider different aspects of airline RM to make the application of the ROM possible in practice. We not only cover a disaggregation of the aggregated network ROM measures to single legs, but also to single RM components. In this thesis we therefore introduce a novel simulation-based approach to investigate the ROM properties particularly to measure its robustness against errors in the estimated unconstrained demand. The RM system used in the simulation environment reflects all main components and RM methods in use of a large network airline, particularly regarding state-of-the-art demand modeling and optimization models. The network-based ROM, both with independent and dependent demand, proves itself robust against errors in the estimated unconstrained demand for realistic input data with better robustness results for the ROM with independent demand. Moreover, a disaggregation of the ROM measures to single flight legs is possible. However, the ROM shows less robustness on a leg level. In addition, an approach to isolate the contribution of overbooking, upgrading and fare-mix from the overall success is introduced. In particular, the ROM measures for overbooking and upgrading prove themselves to be very robust.
Author: Cynthia Barnhart
Publisher: Springer Science & Business Media
Published: 2011-12-22
Total Pages: 461
ISBN-13: 1461416086
DOWNLOAD EBOOKThis book reviews Operations Research theory, applications and practice in seven major areas of airline planning and operations. In each area, a team of academic and industry experts provides an overview of the business and technical landscape, a view of current best practices, a summary of open research questions and suggestions for relevant future research. There are several common themes in current airline Operations Research efforts. First is a growing focus on the customer in terms of: 1) what they want; 2) what they are willing to pay for services; and 3) how they are impacted by planning, marketing and operational decisions. Second, as algorithms improve and computing power increases, the scope of modeling applications expands, often re-integrating processes that had been broken into smaller parts in order to solve them in the past. Finally, there is a growing awareness of the uncertainty in many airline planning and operational processes and decisions. Airlines now recognize the need to develop ‘robust’ solutions that effectively cover many possible outcomes, not just the best case, “blue sky” scenario. Individual chapters cover: Customer Modeling methodologies, including current and emerging applications. Airline Planning and Schedule Development, with a look at many remaining open research questions. Revenue Management, including a view of current business and technical landscapes, as well as suggested areas for future research. Airline Distribution -- a comprehensive overview of this newly emerging area. Crew Management Information Systems, including a review of recent algorithmic advances, as well as the development of information systems that facilitate the integration of crew management modeling with airline planning and operations. Airline Operations, with consideration of recent advances and successes in solving the airline operations problem. Air Traffic Flow Management, including the modeling environment and opportunities for both Air Traffic Flow Management and the airlines.