Optimal overbooking strategies in the airlines using dynamic programming approach in continuous time
The authors propose a novel approach to solve the long-standing challenge of airline overbooking management. They solve the problem using dynamic programming with an industrial setting characterised as near-to-perfect competition where airlines strategically overbook their flights to control their market shares instead of a more conventional setting with a revenue maximisation. The theorised optimisation problem is constructed using a terminal utility criterion and with the application of the Hamilton-Jacobi-Bellman equation. The analysis expands on four most commonly applicable overbooking strategies, and the results provide guidance on how airlines can choose a strategy to pursue an optimisation solution best suited to them.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
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Supplemental Notes:
- © 2019 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
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Authors:
- Alavi Fard, Farzad
- Sy, Malick
- Ivanov, Dmitry
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0000-0003-4932-9627
- Publication Date: 2019-8
Language
- English
Media Info
- Media Type: Web
- Features: Figures; References; Tables;
- Pagination: pp 384-399
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Serial:
- Transportation Research Part E: Logistics and Transportation Review
- Volume: 128
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 1366-5545
- Serial URL: http://www.sciencedirect.com/science/journal/13665545
Subject/Index Terms
- TRT Terms: Airlines; Dynamic programming; Optimization; Overbooking; Yield management
- Subject Areas: Administration and Management; Aviation; Operations and Traffic Management;
Filing Info
- Accession Number: 01712824
- Record Type: Publication
- Files: TRIS
- Created Date: Jul 29 2019 11:03AM