Article ID: | iaor200917418 |
Country: | United Kingdom |
Volume: | 1 |
Issue: | 4 |
Start Page Number: | 319 |
End Page Number: | 331 |
Publication Date: | Jan 2003 |
Journal: | Journal of Revenue and Pricing Management |
Authors: | Weatherford Larry R, Gentry T W, Wilamowski B |
Keywords: | yield management, neural networks, forecasting: applications |
This paper provides the first published research paper on the technique of neural network forecasting as applied to the airline industry. It compares this new method with the traditional forecasting techniques (moving averages, exponential smoothing, regression, etc.). The data were provided by a major international carrier. All the methods were compared on the basis of a standard error measure — mean absolute percentage error (MAPE). The results of the study are promising. The most basic neural network structures provided better forecasts than traditional forecasting methods.