An integrated approach to single-leg airline revenue management: The role of robust optimization

Preprint, Research English OPEN
Birbil, Ilker; Frenk, Hans; Gromicho, Joaquim; Zhang, Shuzhong;
  • Publisher: Erasmus Research Institute of Management
  • Subject: airline revenue management | dynamic models | single-leg problems | Airline Revenue Management, Dynamic Models, Robust Optimization, Single-Leg Problems, Static Models | robust optimization | static models
    • jel: jel:M | jel:L93 | jel:R4 | jel:C61 | jel:M11

textabstractIn this paper we introduce robust versions of the classical static and dynamic single leg seat allocation models as analyzed by Wollmer, and Lautenbacher and Stidham, respectively. These robust models take into account the inaccurate estimates of the underly... View more
  • References (18)
    18 references, page 1 of 2

    [1] Belobaba, P.P. Applications of a probabilistic decision model to airline seat inventory control. Operations Research, 37:183-197, 1989.

    [2] Bertsekas, D.P. Nonlinear Programming (2nd Edition). Athena Scientific, Belmont, 1999.

    [3] Brumelle, S.L and J.I. McGill. Airline seat allocation with multiple nested fare classes. Operations Research, 41:127-137, 1993.

    [4] Clemen R.T. and T. Reilly. Duxbury, 2003.

    [5] De Boer, S.V., Freling, R. and N. Piersma. Mathematical programming for network revenue management revisited. European Journal of Operational Research, 137(1):72-92, 2002.

    [6] Fang, K.-T., Kotz, S. and K.W. Ng. Symmetric Multivariate and Related Distributions. Chapman and Hall, New York, 1990.

    [7] Golub, G.H. and C.F. van Loan. Matrix Computations, 3rd Edition. The Johns Hopkins University Press, Baltimore, 1996.

    [8] Lautenbacher, C.J. and S. Stidham, jr. The underlying markov decision process in the singleleg airline yield-management problem. Transportation Science, 33(2):136-146, 1999.

    [9] Lee,T.C and Hersch, M. A model for dynamic airline seat inventory control with multiple seat bookings. Transportation Science, 27:252-265, 1993.

    [10] Littlewood, K. Forecasting and control of passengers. Proceedings of the 12th Annual AGIFORS Symposium, pages 95-117, 1972.

  • Metrics
Share - Bookmark