Publication Date:
2019
Description:
〈p〉Publication date: August 2019〈/p〉
〈p〉〈b〉Source:〈/b〉 Transportation Research Part E: Logistics and Transportation Review, Volume 128〈/p〉
〈p〉Author(s): Farzad Alavi Fard, Malick Sy, Dmitry Ivanov〈/p〉
〈div xml:lang="en"〉
〈h5〉Abstract〈/h5〉
〈div〉〈p〉We propose a novel approach to solve the long-standing challenge of airline overbooking management. We solve the problem using dynamic programming with an industrial setting characterised as near-to-perfect competition where airlines strategically overbook their flights to control their market shares instead of a more conventional setting with a revenue maximisation. The theorised optimisation problem is constructed using a terminal utility criterion and with the application of the Hamilton-Jacobi-Bellman equation. The analysis expands on four most commonly applicable overbooking strategies, and the results provide guidance on how airlines can choose a strategy to pursue an optimisation solution best suited to them.〈/p〉〈/div〉
〈/div〉
Print ISSN:
1366-5545
Electronic ISSN:
1878-5794
Topics:
Architecture, Civil Engineering, Surveying
,
Geography
,
Economics
