Is demand stationary a point to nesting booking limits in revenue management?

Jean Michel Chapuis ()
Additional contact information
Jean Michel Chapuis: EIREST - Équipe interdisciplinaire de recherches sur le tourisme - UP1 - Université Paris 1 Panthéon-Sorbonne

Post-Print from HAL

Abstract: Revenue Managers usually nest the booking limits to avoid the situation in which high-fare bookings are rejected in favour of low-fare class. To date, there are both net nesting and threshold nesting methods. However, the consequence on revenues of each one is not clearly understood. This research investigates their underlying assumptions and supports that the stationarity of the demand process is the key point. This paper also suggests a co-integration test and an event study methodology to know what is appropriate in practice.

Keywords: early bird hypothesis; net nesting; revenue management; stationary demand process; threshold nesting; booking limits; high fare bookings; low fare class; co-integration tests; event study; booking authorisation; global distribution systems; home central reservation systems.; home central reservation systems (search for similar items in EconPapers)
Date: 2009-07-15
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in International Journal of Revenue Management, 2009, 3 (3), pp.219-234. ⟨10.1504/IJRM.2009.027384⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-00694003

DOI: 10.1504/IJRM.2009.027384

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().