SPILL MODELING FOR AIRLINES

Spill models estimate average passenger loads when demand occasionally exceeds capacity. Such models have been in use for over 20 years. The shape of the distribution of demand is discussed from both theory and observation. Sources of variance are identified and calibrated. Measurement problems and techniques are discussed. Two alternate spill formulas are presented. A model revision responds to changes in process caused by computer reservation systems and revenue management. The concept that spill losses should be valued at discount fares in discussed. The recapture of spill demand is presented as well as when such a phenomenon is relevant. Comparison of various sources of error is included. Finally, the use of spill models in reverse to imply demand from load is shown to have poor accuracy. The paper is meant to offer to the literature a reference for basic use. It is the result of 20 years involvement in spill model derivations, calibrations, and applications.

Language

  • English

Media Info

  • Features: Figures; References; Tables;
  • Pagination: p. 225-237

Subject/Index Terms

Filing Info

  • Accession Number: 00783935
  • Record Type: Publication
  • ISBN: 0080435904
  • Report/Paper Numbers: Volume 1
  • Files: TRIS
  • Created Date: Feb 7 2000 12:00AM