E-Commerce and Operations Research in Airline Planning, Marketing, and Distribution

Barry C. Smith, Dirk P. Günther, B. Venkateshwara Rao and Richard M. Ratlife
Additional contact information
Barry C. Smith: Sabre Inc., East Kirkwood Blvd., MD 7390 TSG, Southlake, Texas 76092
Dirk P. Günther: Sabre Inc.
B. Venkateshwara Rao: Sabre Inc.
Richard M. Ratlife: Sabre Inc.

Interfaces, 2001, vol. 31, issue 2, 37-55

Abstract: Many e-commerce principles were pioneered in the airline industry. These include the first business-to-business electronic information exchange and industrywide electronic marketplace. This environment provided unprecedented opportunity for operations research (OR) modeling. By the mid-1980s airlines used customer shopping data to calibrate traveler-demand-and-choice models, analyzed multichannel product-distribution strategies with simulation, and practiced dynamic pricing through yield management. Airlines continue to derive billions of dollars annually from these and derivative models. The availability of reliable, low-cost communications via the Internet is providing new modeling challenges within the airline industry and is also providing similar opportunities in other industries.

Keywords: COMPUTERS/COMPUTER SCIENCE—SOFTWARE; INDUSTRIES—TRANSPORTATION/SHIPPING (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:31:y:2001:i:2:p:37-55

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