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This paper describes a revenue management problem of a major airline that operates in a very competitive market … optimization problems to maximize the expected revenue for the airline. The inputs include models of booking arrival rates …, competitor assortment selection probabilities, customers' booking choices among the airline's own flights as well as competitors …
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Deterministic mathematical programming models that capture network effects play a predominant role in the theory and … practice of airline revenue management. These models do not address important issues like demand uncertainty, nesting, and the …
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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....
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arbitrary airline networks with upgrades being performed separately on each flight leg. We show that in this case, there are two … approaches regarding revenue performance and discuss airline revenue management settings in which they differ …
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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...
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In the present paper, we consider the demand management decisions of a manufacturer facing stochastic demand. While in the previous literature, either the order release decisions are fixed upon arrival or a single-stage production environment is assumed, we make online order acceptance and order...
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