Airline overbooking in the multi-class case

Airline overbooking in the multi-class case

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Article ID: iaor20003619
Country: United Kingdom
Volume: 50
Issue: 11
Start Page Number: 1098
End Page Number: 1103
Publication Date: Nov 1999
Journal: Journal of the Operational Research Society
Authors:
Keywords: marketing, yield management
Abstract:

This paper presents an airline overbooking model at a class level for one service compartment – cabin. Class level demand data are used to determine the number of bookings that can be taken for each class. The model is optimised through the use of multi-dimensional search routines. The control level model developed is tested with data supplied by Ireland’s national airline, Aer Lingus. The model shows a significant improvement over previous methods employed by Aer Lingus and was subsequently adopted by the airline.

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