The Role of Robust Optimization in Single-Leg Airline Revenue Management

\c{S}. \.Ilker Birbil (), J. B. G. Frenk (), Joaquim A. S. Gromicho () and Shuzhong Zhang ()
Additional contact information
\c{S}. \.Ilker Birbil: Faculty of Engineering and Natural Sciences, Sabanc{\i} University, 34956 Istanbul, Turkey
J. B. G. Frenk: Erasmus University Rotterdam, Postbus 1738, 3000 DR Rotterdam, The Netherlands
Joaquim A. S. Gromicho: Vrije Universiteit, FEWEB-Econometrie, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands, and ORTEC, Postbus 490, 2800 AL Gouda, The Netherlands
Shuzhong Zhang: Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Shatin, Hong Kong

Management Science, 2009, vol. 55, issue 1, 148-163

Abstract: In this paper, we introduce robust versions of the classical static and dynamic single-leg seat allocation models. These robust models take into account the inaccurate estimates of the underlying probability distributions. As observed by simulation experiments, it turns out that for these robust versions the variability compared to their classical counterparts is considerably reduced with a negligible decrease in average revenue.

Keywords: airline revenue management; single-leg problems; static models; dynamic models; robust optimization (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.1070.0843 (application/pdf)

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:inm:ormnsc:v:55:y:2009:i:1:p:148-163

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().