Recently, the standard dynamic programming model of network revenue management has been extended for integrated upgrade decision-making. However, opposed to the original model, heuristically breaking the extended model down into a series of single-leg problems by dynamic programming...

Network Revenue Management can be formulated as a stochastic dynamic programming problem ("optimal" solution) whose exact solution is computationally intractable. Consequently, a number of heuristics have been proposed in the literature, the most popular of which are the deterministic linear...

Opaque products enable service providers to hide specific characteristics of their service fulfillment from the customer until after purchase. Prominent examples include internet-based service providers selling airline tickets without defining details, such as departure time or operating...

Major airlines are selling increasing numbers of interline itineraries, in which flights operated by two or more airlines are combined and sold together. One reason for this increase is the rapid growth of airline alliances, which promote the purchase of interline itineraries and therefore...

Dynamic capacity management is the reassignment of aircraft to a flight schedule in response to the realisation of demand. Through better matching of the supply and demand for seats, airlines are able to carry more passengers, and the revenue management policy should be adjusted accordingly....

Companies in a variety of industries (e.g., airlines, hotels, theaters) often use last-minute sales to dispose of unsold capacity. Although this may generate incremental revenues in a short term, the long-term consequences of such a strategy are not immediately obvious: more discounted...

Un abondant contentieux concurrentiel a été suscité par des conventions liant des aéroports secondaires et des compagnies aériennes à bas coût. Ces dernières ont en effet été passées au crible de l’encadrement européen des aides publiques car elles risquaient de donner lieu tant à...

We investigate the effect of competition on price dispersion in the airline industry. Using panel data from 1993 to 2008, we find a nonmonotonic effect of competition on price dispersion. An increase in competition is associated with greater price dispersion in concentrated markets but with less...

Approach to modeling evolution of market of civil aircraft is proposed. The study of prospects of the US passenger traffic is carried out on the basis of the constructed econometric model of oligopoly in airline industry. Scenarios of key indicators of the market (market structure, revenue...

This paper provides new evidence on price dispersion in the US airline industry. Using the observed fare differences between refundable and non-refundable tickets, we first document evidence on the prices passengers pay for a refund option. We find that the factors related to the value of refund...