Combined overbooking and seat inventory control for two-class revenue management model

Authors

ดร.Murati • Somboon, รศ.ดร.กาญจ์นภา อมรัชกุล

Published

Songklanakarin Journal of Science and Technology

Abstract

We propose a two-class revenue management (RM) model, which combines two of the most important RM strategies, namely overbooking and seat inventory control for a passenger airline. We derive a closed-form expression for an optimal overbooking limit that maximizes the expected profit, and analytically perform sensitivity analysis by changing model parameters such as a revenue, a penalty cost associated with unsatisfied demand, a show-up probability, a refund, a denied boarding cost, and a plane capacity.

(2559). Combined overbooking and seat inventory control for two-class revenue management model. Songklanakarin Journal of Science and Technology, 999(6), 657-666.