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...

To fly from London to New York nowadays, it is customary to visit a traveling website such as http://travel.yahoo. com, in order to make the reservation. Surprisingly, there are more than 46 flights to choose from with varying prices ranging from $672 to $1,989. In fact, with an extra $3 the VIP services in coach would be granted, which infers that long gone are the days where many calls had to...

Sports analytics has gained significant popularity to support athletic organization’s business and field operations such as enhancing talent identification, player recruitment, player development, training priorities, coaching, game tactics, team selection, injury management, fan/customer relationship management, etc. Through a qualitative case study approach, this study examines a regional uni...

BEA economist looks at sumers essentially separate tion strategies at an airline, the airline price strategies themselves through the ticket authors developed a simple the-The role of pricing strategies, choices that they make. This oretical model of second-degree which can have a profound im­ type of self selection is referred price discrimination and applied pact on companies' profitability, ...

The airline revenue management problem can be decomposed into four distinct but related sub-problems that are usually treated separately: demand forecasting, overbooking, capacity allocation and pricing. Over the last decades, much interest has been devoted to the overbooking and capacity allocation issues and, today, most major airlines rely on computerized tools to deal with these two sub-pro...

A stand-alone Excel spreadsheet simulation template is used to illustrate the detailed rationale of reservation overbooking to both students and professionals working in reservation-based operations. Because almost everyone has personally encountered the frustrations of being “bumped”—losing an airline seat or hotel room reservation—the selection of this particular subject is driven by the beli...

The objective of this study is identify key factors that determine the ticket-sales revenue of minor league baseball teams and, in doing so, to verify that marketing strategies can lead to greater success for free enterprise in this milieu. To ensure greater comparability of data between teams and hence greater relevance of the results, this study focuses upon a single grouping of minor league ...