A Static Model in Single Leg Flight Airline Revenue Management

Static models on single leg airline revenue management generally consider booking limits or protection limits as the main decision variables to control reservation requests. In the current paper, the authors provide an alternative framework in which the decision variables are the closing times of fare classes. In a continuous time model with nonhomogeneous Poisson arrivals, cancellations, and no-shows, the authors study the problem of finding optimal closing times to maximize the expected net revenue from a given flight. The authors analyze the value function, point out some easy cases, and bring an easily implementable dynamic programming based solution method. The authors also illustrate this method on some numerical examples.

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  • English

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  • Accession Number: 01633808
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 1 2017 9:36AM