| Article ID: | iaor20023338 |
| Country: | Japan |
| Volume: | 44 |
| Issue: | 4 |
| Start Page Number: | 313 |
| End Page Number: | 325 |
| Publication Date: | Dec 2001 |
| Journal: | Journal of the Operations Research Society of Japan |
| Authors: | You Peng-Sheng |
| Keywords: | decision, programming: dynamic |
It is a current airline industry practice to upgrade passengers from the economy cabin to the business cabin at no additional cost to the passengers. Incorporating this practice, this paper deals with a single-flight-leg multi-fare class seat inventory control problem. A discrete-time dynamic programming model for finding the optimal booking policy is developed. The booking process is found to be controlled by some set of booking thresholds.