How to aggregate origin and destination availability

How to aggregate origin and destination availability

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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:
Keywords: yield management
Abstract:

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.

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