EconPapers    
Economics at your fingertips  
 

Dynamic Pricing in Airline Seat Management for Flights with Multiple Flight Legs

Peng-Sheng You
Additional contact information
Peng-Sheng You: Department of Business Administration, Chang Jung University, 396, Section 1, Chang Jung Road, Town of Kway Jen, Tainan 711, Taiwan

Transportation Science, 1999, vol. 33, issue 2, 192-206

Abstract: Consider a multiple booking class airline-seat inventory control problem that relates to either a single flight leg or to multiple flight legs. During the time before the flight, the airline may face the problems of (1) what are the suitable prices for the opened booking classes, and (2) when to close those opened booking classes. This work deals with these two problems by only using the pricing policy. In this paper, a dynamic pricing model is developed in which the demand for tickets is modeled as a discrete time stochastic process. An important result of this work is that the strategy for the ticket booking policy can be reduced to sets of critical decision periods, which eliminates the need for large amounts of data storage.

Date: 1999
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/trsc.33.2.192 (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:ortrsc:v:33:y:1999:i:2:p:192-206

Access Statistics for this article

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

 
Page updated 2025-03-19
Handle: RePEc:inm:ortrsc:v:33:y:1999:i:2:p:192-206