The net benefit of airline overbooking

Yoshinori Suzuki

Transportation Research Part E: Logistics and Transportation Review, 2006, vol. 42, issue 1, 1-19

Abstract: Benefits of airline overbooking are often measured by considering only the revenue gains attained for overbooked (congested) flights, and ignoring the potential loss of revenues that may take place in other (un-congested) flights (i.e., the "gross" benefit). This study explores the "net" benefit of overbooking by considering revenue implications of overbooking on both congested and un-congested flights. A series of simulation experiments are conducted to investigate the nature of the relationship between the gross and net benefits. The results imply that the net benefit may be substantially lower than the gross benefit under many practical conditions.

Keywords: Airlines; Revenue; management; Overbooking; Simulation (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554504000845
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:42:y:2006:i:1:p:1-19

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().