We develop an overbooking approach for airline revenue management. We estimate a revenue function by employing a statistical modeling approach, specifically a multivariate adaptive regression splines approximation of a stochastic network model. We develop an overbooking cost function using a binomial distribution to model the number of customers that show up for the flight. We implement a hybri...

In this paper, we develop a revenue management model to jointly make the capacity allocation and overbooking decisions over an airline network. Our approach begins with the dynamic programming formulation of the capacity allocation and overbooking problem and uses an approximation strategy to decompose the dynamic programming formulation by the flight legs. This decomposition idea opens up the ...

BACKGROUND Patient no-shows in outpatient delivery systems remain problematic. The negative impacts include underutilized medical resources, increased healthcare costs, decreased access to care, and reduced clinic efficiency and provider productivity. OBJECTIVE To develop an evidence-based predictive model for patient no-shows, and thus improve overbooking approaches in outpatient settings to...

In this paper, we develop a revenue management model to jointly make the capacity allocation and overbooking decisions over an airline network. The crucial observation behind our model is that if the penalty cost of denying boarding to the reservations were given by a separable function, then the optimality equation for the joint capacity allocation and overbooking problem would decompose by th...

We study a classical problem in revenue management: quantity-based single-resource management with no-shows. In this problem, firm observes sequence of T customers requesting service. Each arrival is drawn independently from known distribution k different types, and the needs to decide irrevocably whether accept or reject requests an online fashion. The has capacity resources B, wants maximize ...

In this paper we consider the airline seat allocation between high and low fares with and without stochastic cancellations. We also analyze the problem of simultaneously determining seat allocation and overbooking levels for two different classes of passengers, which also extends the existing literature in three ways. First, the cost oflost sales, which has been ignored in the existing literatu...

OBJECTIVE To measure the cost of nonattendance ("no-shows") and benefit of overbooking and interventions to reduce no-shows for an outpatient endoscopy suite. METHODS We used a discrete-event simulation model to determine improved overbooking scheduling policies and examine the effect of no-shows on procedure utilization and expected net gain, defined as the difference in expected revenue bas...

BACKGROUND In almost all healthcare systems, no-shows (scheduled appointments missed without any notice from patients) have a negative impact on waiting lists, costs and resource utilization, impairing the quality and quantity of cares that could be provided, as well as the revenues from the corresponding activity. Overbooking is a tool healthcare providers can resort to reduce the impact of no...

The health-care clinic presented in this study experienced significant numbers of patients who failed to arrive for their scheduled appointments (no-shows). The cost of reducing patient access at this clinic because of noshows is estimated to exceed $400,000 annually. An interdisciplinary quality-improvement team developed a novel health-care overbooking model that includes the effects of emplo...