Choice-based revenue management: An empirical study of estimation and optimization

Choice-based revenue management: An empirical study of estimation and optimization

0.00 Avg rating0 Votes
Article ID: iaor20105184
Volume: 12
Issue: 3
Start Page Number: 371
End Page Number: 392
Publication Date: Jun 2010
Journal: Manufacturing & Service Operations Management
Authors: , ,
Keywords: yield management
Abstract:

Discrete choice models are appealing for airline revenue management (RM) because they offer a means to profitably exploit preferences for attributes such as time of day, routing, brand, and price. They are also good at modeling demand for unrestricted fare class structures, which are widespread throughout the industry. However, there is little empirical research on the practicality and effectiveness of choice-based RM models. Toward this end, we report the results of a study of choice-based RM conducted with a major U.S. airline. Our study had two main objectives: (1) to assess the extent to which choice models can be estimated well using readily available airline data, and (2) to gauge the potential impact that choice-based RM could have on a sample of test markets.

Reviews

Required fields are marked *. Your email address will not be published.