Revenue management problem considering overbooking in the aviation industry

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper presents an optimization model using stochastic programming to secure the optimum seat and maximizing the profit of the airline in consideration of overbooking. Airline seat inventory control involves selling the right seats to the right people at the right time. If an airline sells tickets on a first-come, first-serve basis, it is likely to be occupied by leisure travelers and late bookers. Generally, business travelers willing to pay a higher fare will subsequently find no seats left, and revenue from such sales will be lost. While there are various needs that depend on the type of passenger, we propose an optimization model using stochastic programming as a method of maximizing the profit of the airline company by securing seats appropriately and employing the concept of overbooking.

Original languageEnglish
Title of host publicationProceedings - 2021 10th International Congress on Advanced Applied Informatics, IIAI-AAI 2021
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages855-860
Number of pages6
ISBN (Electronic)9781665424202
DOIs
Publication statusPublished - 2021
Event10th International Congress on Advanced Applied Informatics, IIAI-AAI 2021 - Virtual, Online, Japan
Duration: 2021 Jul 112021 Jul 16

Publication series

NameProceedings - 2021 10th International Congress on Advanced Applied Informatics, IIAI-AAI 2021

Conference

Conference10th International Congress on Advanced Applied Informatics, IIAI-AAI 2021
Country/TerritoryJapan
CityVirtual, Online
Period21/7/1121/7/16

Keywords

  • overbooking
  • revenue management
  • stochastic programming

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Computer Science Applications
  • Information Systems
  • Information Systems and Management
  • Education

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