EMPIRICAL STUDIES OF REVENUE MANAGEMENT PRACTICES: UNDERSTAND YOUR COMPETITION AND CUSTOMERS Jun Li Gerard Cachon This dissertation empirically examines factors that challenge revenue management practices in travel industry — air-travel and lodging. In particular, it focuses on strategic interactions among firms and strategic interactions between firms and customers. While most traditional reve...

Despite vigorous competition, airlines regularly fly their airplanes below full capacity. One reason for this is that airline fares are set before airlines observe demand. Moreover, even when airlines have accurate forecasts of demand, their ability to use prices and revenue management to smooth demand is constrained by the amount of information consumers have about prices and schedules, or mor...

The purpose of this paper is to test the nature of competition concerning price and capacity setting in the Norwegian airline industry after the deregulation in 1994. Did the two airlines, SAS and Braathens, compete on prices and capacities (competition), collude on prices and capacities (collusion) or collude on prices and compete on capacities (semicollusion)? We reject the hypothesis that th...

We investigate whether the top management of all legacy U.S. airlines used their quarterly earnings calls as a mode of communication with other airlines to coordinate output reduction (fewer passenger seats) on competitive routes. We build an original and novel dataset on the public communication content from the earnings calls, and use Natural Language Processing techniques from computational ...

Delta Air Lines is the first and only airline to carry over 100 million passengers in a year, carrying over 105,000,000 passengers in 1998. To provide service to this number of passengers, Delta operates a “hub and spoke” flight system. In the hub and spoke system, certain key airports, or hubs, are designated as the origination point of a large number of flights, thereby allowing a passenger d...

This paper serves as a case study focusing on the effects of September 11 on a set of airline stocks traded at various stock markets. Utilizing the Market Model as the relevant return generating mechanism we show that for all airline stocks, the hypothesis of a structural break in systematic risk (beta) cannot be rejected. Moreover, we show that both systematic as well idiosyncratic risks have ...

Airline crew rostering is an important part of airline operations and an interesting problem for the application of operations research. The objective is to assign anonymous crew pairings either to personalized rosters or to anonymous bidlines which subsequently will be assigned to individual crew members. Compared to the crew pairing problem, crew rostering has received much less attention in ...