DYNAMIC PRICING IN AIRLINE SEAT MANAGEMENT FOR FLIGHTS WITH MULTIPLE FLIGHT LEGS

During the time before a flight, an airline may face the problems of (1) what are the suitable prices for the opened booking classes, and (2) when to close those opened booking classes. This paper deals with these two problems by only using the pricing policy. In this paper, a dynamic pricing model is developed in which the demand for tickets is modeled as a discrete time stochastic process. An important result of this work is that the strategy for the ticket booking policy can be reduced to sets of critical decision periods, which eliminates the need for large amounts of data storage.

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  • Corporate Authors:

    Institute for Operations Research and the Management Sciences (INFORMS)

    901 Elkridge Landing Road, Suite 400
    Linthicum, MD  United States  21090-2909
  • Authors:
    • You, P-S
  • Publication Date: 1999-5

Language

  • English

Media Info

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Filing Info

  • Accession Number: 00765495
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 7 1999 12:00AM