Multi-class Demand with Capacity Constraints: Theory and Estimation

This article proposes a theory that air passengers, when faced with a set of discrete choices with quantity restraints, form an expectation of probability of availability for each available alternative. The theory also proposes that probability can be manipulated by expending resources. The authors assess their theory by developing a multi-class air-travel demand model for a regional route in Australia, and suggest that the results have implications for airline setting strategies. As an example they describe a marketing campaign by Jetstar, a low-cost subsidiary of Qantas, which announced the availability of 300,000 tickets. The authors assert that this approach would probably result in a higher demand for announced available classes. Besides the air-travel industry, the model may prove applicable in other areas such as restaurant choice or sporting event attendance.

  • Availability:
  • Authors:
    • Battersby, Bryn
    • Oczkowski, Edward
  • Publication Date: 2010-1

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01150461
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Feb 4 2010 7:42PM