| Article ID: | iaor200949566 |
| Country: | United Kingdom |
| Volume: | 3 |
| Issue: | 2 |
| Start Page Number: | 191 |
| End Page Number: | 199 |
| Publication Date: | Jul 2004 |
| Journal: | Journal of Revenue and Pricing Management |
| Authors: | Plt Stefan |
| Keywords: | yield management |
Over the last few years more and more airlines have moved from leg to origin and destination (O&D) control. O&D control better reflects the value of a booking request in the availability calculation. O&D availability is usually calculated for each itinerary, booking class, point of sale and departure date separately. This paper tackles the question of how to aggregate O&D availability, eg for management reports. Management reports present data on a high aggregation level such as country to country and departure month. Since many different O&Ds compete for the same physical seat on a flight, a simple summation of O&D availability leads to double counting. This paper presents two different mathematical models which avoid and factor out this double counting.