STOCHASTIC AND DYNAMIC AIRLINE YIELD MANAGEMENT WHEN AIRCRAFT ASSIGNMENTS ARE SUBJECT TO CHANGE

In the commercial airline industry, aircraft assignments are subject to changes because of irregular operations and the practice of re-assigning planes to alternative routes due to unexpectedly high (or low) demands. Therefore there is a need for yield management techniques that explicitly incorporate the possibility of future capacity changes. Though there is a rich literature on the topic of yield management in the context of stochastic demand, no published research to date deals with the case in which capacity is also stochastic. In this paper, the authors propose a solution for the continuous stochastic dynamic yield management problem in which flight capacities are subject to change. This problem has wide practical applications in rental car and hotel management as well.

Language

  • English

Media Info

  • Features: References;
  • Pagination: 15 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00964137
  • Record Type: Publication
  • Report/Paper Numbers: UCI-ITS-LI-WP-02-10
  • Files: TRIS
  • Created Date: Oct 14 2003 12:00AM