ALLOCATION OF AIRLINE SEATS BETWEEN STOCHASTICALLY DEPENDENT DEMANDS

This paper examines the problem of setting a limit for bookings of airline seats in a discount fare class when there is stochastic dependency between demands for the discount seats and demands for full fare seats. A seat allocation model is presented that allows for demand dependency between fare classes. Also included are an extension of the model to allow for control of the full fare passenger spillage (the rejection of full fare reservation requests when a flight is fully booked), consideration of the impact on passenger goodwill of seat allocation decisions, and a rigorous proof of a formula for optimal seat allocations in the special case that dependency arises because of upgrades.

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    Operations Research Society of America

    Mount Royal and Guilford Avenue
    Baltimore, MD  United States  21202
  • Authors:
    • BRUMELLE, S L
    • McGill, J I
    • Oum, T H
    • Sawaki, K
    • Tretheway, M W
  • Publication Date: 1990-8

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Filing Info

  • Accession Number: 00496725
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 31 1990 12:00AM