Multi-leg Seat Inventory Control Based on EMSU and Virtual Bucket
نویسندگان
چکیده
Expected marginal seat revenue (EMSR) is a well-known method for airline seat inventory control airlines. However, this method employs a static model to study the dynamic reservation process, and does not take into account the risk tolerance of policy makers. Expected marginal seat utility (EMSU) replaces revenue by utility, which addresses the real situation of seat inventory control. However, there is still a lack of multi-leg seat control algorithms based on EMSU. Therefore, using EMSU and bucket algorithms, this paper applies the Markov decision-making process to simulate the flight reservation process and builds a dynamic multi-leg seat inventory control model. Experimental results validate the effectiveness of the proposed method.
منابع مشابه
Optimal Airline Seat Inventory Control for Multi-leg Flights
For large commercial airlines, efficiently setting and updating seat allocation targets for each passenger category on each multi-leg flight is an extremely difficult problem. This paper presents static and dynamic models of airline seat inventory control for multi-leg flights with multiple fare classes, which allow one to maximize an expected contribution to profit. The dynamic model uses the ...
متن کاملRevenue Management Games: Horizontal and Vertical Competition
A well-studied problem in the literature on airline revenue (or yield) management is the optimal allocation of seat inventory among fare classes given a demand distribution for each class. In practice, the seat allocation decisions of one airline affect the passenger demands for seats on other airlines. In this paper we examine the seat inventory control problem under both horizontal competitio...
متن کاملAIRLINE STOCHASTIC CAPACITY ALLOCATION BY APPLYING REVENUE MANAGEMENT
To formulate a single-leg seat inventory control problem in an airline ticket sales system, the concept and techniques of revenue management are applied in this research. In this model, it is assumed the cabin capacity is stochastic and hence its exact size cannot be forecasted in advance, at the time of planning. There are two groups of early-reserving and late-purchasing customers demanding t...
متن کاملJoint Optimization of Star P-hub Median Problem and Seat Inventory Control Decisions Considering a Hybrid Routing Transportation System
In this paper, we study the problem of integrated capacitated hub location problem and seat inventory control considering concept and techniques of revenue management. We consider an airline company maximizes its revenue by utilizing the best network topology and providing proper booking limits for all itineraries and fare classes. The transportation system arises in the form of a star/star net...
متن کاملDynamic Booking Policy for Airline Seat Inventory Control
A dynamic booking policy for multiple fare classes that share the same seating pool on one leg of an airline flight, when seats are booked in a nested fashion and when lower fare classes book before higher ones, is determined. The dynamic policy of airline booking makes repetitive use of an optimal static policy over the booking period, based on the most recent demand and capacity information. ...
متن کامل