 Optimal seat allocation for two-flight problems with a flexible demand segmentShaoxiang Chen, Guillermo Gallego, Michael Z.F. Li and Bing Lin European Journal of Operational Research, 2010, vol. 201, issue 3, 897-908 Abstract: In this paper, we study a two-flight model where there are two flights between two cities in a day (e.g., one departs at 9:00Â am and another at 11:00Â am) and booking requests in each fare class arrive according to a random process. There are three types of booking requests: the first and second types are respectively for the first and the second flight only; whereas the third type is flexible and willing to take either flight. Upon receiving a booking request, the airline has to decide whether to accept it, and in case a third type is accepted, which flight to accommodate it. This paper uncovers the structure of optimal booking policies through four monotone switching curves. We also present an extension of the basic model to multiple-flight case. Finally, a numerical example is used to illustrate the derivation and the dynamics of the optimal booking policies. Keywords: Dynamic; programming; Yield/revenue; management; Optimal; booking; policies; Switching; curves (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:201:y:2010:i:3:p:897-908 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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