 Perishable-asset revenue management: Generic and multiple-price yield management with diversionS. E. Bodily and L. R. Weatherford Omega, 1995, vol. 23, issue 2, 173-185 Abstract: In any situation of fixed capacity and a perishable service or product, firms want to avoid spoilage of the service or product and receive the most revenue possible in the face of uncertain demand. Stimulation of demand from price-sensitive customers, however, through discount prices to customers that reserve early can help fill capacity. This is attractive if non-price-sensitive customers can be prevented from diverting to the lower rates. This paper provides generic results for deciding how many discount units to sell (the so-called yield-management problem) and extends the generic problem in several ways: (1) to situations with continuous, not discrete resources, (2) to treatment of yield management jointly with overbooking, and (3) to problems with diversion with more than two price classes. Simulation studies using airline data suggest that our decision rules perform better than previous rules now used in practice. Keywords: air-transport; marketing; resource; management; decision; making/process; inventory; control; Newsboy; problem (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:jomega:v:23:y:1995:i:2:p:173-185 Ordering information: This journal article can be ordered from Access Statistics for this article Omega is currently edited by B. Lev More articles in Omega from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.