This 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.
A major problem arising in airline alliances is to design allocation mechanisms determining how the revenue of a product should be shared among the airlines. The nucleolus is a concept of cooperative game theory that provides solutions for allocating the cost or benefit of a cooperation. This work provides fair revenue proportions for the airline alliances based on the nucleolus, which assumes a centralized decision making system. The proposed mechanism is used as a benchmark to evaluate the fairness of the revenue sharing mechanisms, where the alliance partners behave selfishly. Additionally, a new selfish revenue allocation rule is developed that improves the performance of the existing methods.
This 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.
“There is no strategic investment that has a higher return than investing in good pricing, and the text by Gallego and Topaloghu provides the best technical treatment of pricing strategy and tactics available.” Preston McAfee, the J. Stanley Johnson Professor, California Institute of Technology and Chief Economist and Corp VP, Microsoft. “The book by Gallego and Topaloglu provides a fresh, up-to-date and in depth treatment of revenue management and pricing. It fills an important gap as it covers not only traditional revenue management topics also new and important topics such as revenue management under customer choice as well as pricing under competition and online learning. The book can be used for different audiences that range from advanced undergraduate students to masters and PhD students. It provides an in-depth treatment covering recent state of the art topics in an interesting and innovative way. I highly recommend it." Professor Georgia Perakis, the William F. Pounds Professor of Operations Research and Operations Management at the Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts. “This book is an important and timely addition to the pricing analytics literature by two authors who have made major contributions to the field. It covers traditional revenue management as well as assortment optimization and dynamic pricing. The comprehensive treatment of choice models in each application is particularly welcome. It is mathematically rigorous but accessible to students at the advanced undergraduate or graduate levels with a rich set of exercises at the end of each chapter. This book is highly recommended for Masters or PhD level courses on the topic and is a necessity for researchers with an interest in the field.” Robert L. Phillips, Director of Pricing Research at Amazon “At last, a serious and comprehensive treatment of modern revenue management and assortment optimization integrated with choice modeling. In this book, Gallego and Topaloglu provide the underlying model derivations together with a wide range of applications and examples; all of these facets will better equip students for handling real-world problems. For mathematically inclined researchers and practitioners, it will doubtless prove to be thought-provoking and an invaluable reference.” Richard Ratliff, Research Scientist at Sabre “This book, written by two of the leading researchers in the area, brings together in one place most of the recent research on revenue management and pricing analytics. New industries (ride sharing, cloud computing, restaurants) and new developments in the airline and hotel industries make this book very timely and relevant, and will serve as a critical reference for researchers.” Professor Kalyan Talluri, the Munjal Chair in Global Business and Operations, Imperial College, London, UK.
This 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.
This book discusses incentives for information management, usage of information for existing practices to become more efficient, the acceleration of executive learning, and an evaluation of the information management impact on an organization. In today’s COVID-influenced volatile world, companies face a variety of challenges. And the most crucial of them are high levels of uncertainty and risk. Therefore, companies are constantly under pressure to provide sustainable solutions. Accordingly, previously gathered knowledge and information can be extremely helpful for this purpose. Hence, this fourth book of our subseries continues to accentuate on different approaches, which point to the importance of continuous progress in structural management for sustainable growth. It highlights the permanent gain and usage of information. We would be pleased if the book can stimulate further research on this subject matter.
'Beyond Open Skies' offers a systematic comparative analysis of the legal and policy dimensions of airline deregulation by federal fiat in the United States and by supranational collaboration in the European Union. The book draws upon a variety of sources, including very recent developments in U.S. and EC international aviation law, policy, and diplomacy, to propose a genuine multilateral air transport system. It examines the potential of the 'open skies' initiative, in the aftermath of the new U.S./EC air transport agreement, to inspire a genuine globalization of the world's air transport industry in such crucial aspects as the following: cabotage; ownership and citizenship requirements; route selection; airline identity; capacity; pricing regimes; competition and public aid; regulatory harmonization; labor laws; provisions for charter and/or cargo transportation; fair operation of and access to computer reservations systems; authorization of code-sharing arrangements; alliances and antitrust immunity; and dispute resolution.
The air transport industry is highly vulnerable to environmental changes as was seen when the recent COVID-19 pandemic caused most airline operations to cease. However, for decades airlines have been collapsing around the globe as the business of managing airline operations has become stressed due to price competition. This is detrimental to air carriers since air transport products and services are the same. Moreover, it impacts other industries such as tourism, hotels, and restaurants, which contribute to the derailment of economic and social activities. Thus, it is essential to determine new practices and strategies that can allow air transport management to be enriched and to flourish. Global Air Transport Management and Reshaping Business Models for the New Era provides a comprehensive collection of knowledge on the new era of business management on air transport. It provides strategies, technologies, and tools used in the reshaping of the air transport business model. Covering topics such as customer experience, robotic process automation, and airline alliances, this major reference work is an essential resource for airline managers, supply chain specialists, air transport managers, students and faculty of higher education, libraries, researchers, economists, government officials, and academicians.
This book analyzes revenue management (RM) problems with flexible products and RM in broadcasting companies. It presents models and methods that explicitly take the implications of flexibility into account. In addition, it contains descriptions of algorithms to generate stochastic demand data streams for general RM problems. To help readers with their own simulation studies, it provides an implementation as a Microsoft Windows executable file.
The tourism industry is a multi-billion dollar enterprise, with more people from all cultures and nationalities choosing to spend their leisure time traveling and visiting new locations. To exploit this burgeoning market, tourism agencies must carefully consider the desires and goals of travelers from around the world. The Handbook of Research on Global Hospitality and Tourism Management contributes to the body of knowledge on travel and tourism by presenting a global view of the hospitality industry, including theoretical research into industry trends as well as case studies from around the world. This handbook provides travel agents, owner-operators, and students and researchers in the hospitality industry with the latest research, findings, and developments in the field. Within this handbook of cutting-edge research, readers will find chapters and cases on topics such as travel and tourism in a global economy; local, glocal, and international hospitality; challenges in environmental management; cultural cuisine; and destination management, among others.
