Show/Hide Menu
Hide/Show Apps
Logout
Türkçe
Türkçe
Search
Search
Login
Login
OpenMETU
OpenMETU
About
About
Open Science Policy
Open Science Policy
Open Access Guideline
Open Access Guideline
Postgraduate Thesis Guideline
Postgraduate Thesis Guideline
Communities & Collections
Communities & Collections
Help
Help
Frequently Asked Questions
Frequently Asked Questions
Guides
Guides
Thesis submission
Thesis submission
MS without thesis term project submission
MS without thesis term project submission
Publication submission with DOI
Publication submission with DOI
Publication submission
Publication submission
Supporting Information
Supporting Information
General Information
General Information
Copyright, Embargo and License
Copyright, Embargo and License
Contact us
Contact us
Dynamic pricing in airline revenue management
Date
2019-10-15
Author
Selcuk, Ahmet Melih
Avşar, Zeynep Müge
Metadata
Show full item record
This work is licensed under a
Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License
.
Item Usage Stats
257
views
0
downloads
Cite This
In this study, an exact Dynamic Programming formulation is developed for price based revenue management in the airline industry. Structural properties of the optimal pricing policy are presented first. Then, the optimal policy is investigated for four different price-demand relationships and the characteristic properties of the airline demand are discussed. Performance of the proposed Dynamic Programming formulation is numerically compared with an alternative approximate approach based on the repeated use of a Mixed Integer Programming model and also with intuitive methods of temporal price discrimination. The numerical results show that significant revenue improvements are obtained by the proposed dynamic pricing methodology.
Subject Keywords
Demand uncertainty
,
Customer behavior
,
Time-variant demand
,
ynamic pricing
,
Revenue management
URI
https://hdl.handle.net/11511/41887
Journal
JOURNAL OF MATHEMATICAL ANALYSIS AND APPLICATIONS
DOI
https://doi.org/10.1016/j.jmaa.2019.06.012
Collections
Department of Industrial Engineering, Article
Suggestions
OpenMETU
Core
Dynamic pricing for airline revenue management problem with cancellation possibility
Selçuk, Ahmet Melih; Avşar, Zeynep Müge; Department of Operational Research (2014)
In this study, dynamic pricing methods are developed for airline revenue management problem. The bookings for a particular flight are considered in two classes as restricted and flexible bookings representing whether the buyer can claim a refund in case of a cancellation. The different classes of bookings are considered for the same inventory to be sold at different prices. For pricing the restricted bookings, the principle ideas in revenue management literature are adopted to maximize revenues by managing ...
Dynamic switching times for season and single tickets in sports and entertainment with time dependent demand rates
Pakyardım, Yusuf Kenan; Duran, Serhan; Department of Industrial Engineering (2011)
The most important market segmentation in sports and entertainment industry is the competition between customers that buy bundle and single tickets. A common selling practice is starting the selling season with bundle ticket sales and switching to selling single tickets later on. The aim of this practice is to increase the number of customers that buy bundles, to create a fund before the season starts and to increase the load factor of the games with low demand. In this thesis, we investigate the effect of ...
Optimal production and inventory policies of priority and price-differentiated customers
Duran, Serhan; SİMCHİ-LEVİ, David; Swann, Julie L. (2007-01-01)
Many firms are exploring production and supply chain strategies when customers may be segmented into different classes based on service level or priority. Such segmentation can result in a more efficient production system as well as a better match between supply and demand. In this research, we analyze a system with customer classes 1 and 2, where customer class 1 has a higher priority of fulfillment than customer class 2 in the same period. We develop an optimal production and inventory strategy that ratio...
Demand systems for agricultural products in the OECD countries
Erdil, Erkan; Çakmak, Erol; Department of Economics (2003)
The estimation of demand equations provides the earliest example of the use of statistical and econometric techniques on economic data. It is possible to identify two distinct approaches to the estimation of demand equations. The first and original approach concentrated on the demand for particular goods by paying attention to any special characteristics of the single market involved. The second approach involved simultaneous estimation of complete systems containing the demand equations for every ...
Dynamic Lead-Time Quotation for an M/M/1 Base-Stock Inventory Queue
Savaşaneril Tüfekci, Seçil; Keskinocak, Pinar (2010-03-01)
We study a dynamic lead-time quotation problem in a base-stock inventory system characterized by lead-time sensitive Poisson demand and exponentially distributed service times. We show that the optimal profit is unimodal in the base-stock level. We compare the base-stock system with a make-to-order (MTO) system and show that the lead-time quotes are lower in an MTO system and that increasing the base-stock level does not necessarily decrease the expected number of customers waiting. Numerical results show t...
Citation Formats
IEEE
ACM
APA
CHICAGO
MLA
BibTeX
A. M. Selcuk and Z. M. Avşar, “Dynamic pricing in airline revenue management,”
JOURNAL OF MATHEMATICAL ANALYSIS AND APPLICATIONS
, pp. 1191–1217, 2019, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/41887.