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A network group booking model for airline revenue management

A network group booking model for airline revenue management Airlines use various analytical techniques to optimally control seats in its various fare classes. Most literature on inventory control does not discuss policies for group arrivals. This study aims to address the literature gap in determining an optimal booking policy which considers the dynamics of group behaviour with respect to cancellations and refunds.Design/methodology/approachAn analytical model by which bid price control mechanism can be applied to group bookings is developed through this study.FindingsNumerical experiments are performed to demonstrate the analytical model under various scenarios. A comparison of the model with the traditional model indicates an increase in the total revenue generated.Originality/valueThe novelty of this work is in modelling the dynamics of group behaviour in a network of flights, and it contributes to the literature on revenue management. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Modelling in Management Emerald Publishing

A network group booking model for airline revenue management

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References (27)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1746-5664
DOI
10.1108/jm2-06-2020-0175
Publisher site
See Article on Publisher Site

Abstract

Airlines use various analytical techniques to optimally control seats in its various fare classes. Most literature on inventory control does not discuss policies for group arrivals. This study aims to address the literature gap in determining an optimal booking policy which considers the dynamics of group behaviour with respect to cancellations and refunds.Design/methodology/approachAn analytical model by which bid price control mechanism can be applied to group bookings is developed through this study.FindingsNumerical experiments are performed to demonstrate the analytical model under various scenarios. A comparison of the model with the traditional model indicates an increase in the total revenue generated.Originality/valueThe novelty of this work is in modelling the dynamics of group behaviour in a network of flights, and it contributes to the literature on revenue management.

Journal

Journal of Modelling in ManagementEmerald Publishing

Published: Jul 20, 2021

Keywords: Mathematical programming; Operations research; Revenue management; Dynamic programming

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