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Flexible assignment approach to itinerary seat allocation

Author

Listed:
  • Wong, Jinn-Tsai
  • Koppelman, Frank S.
  • Daskin, Mark S.

Abstract

This paper proposes a new approach to the optimal allocation of airline seats among itineraries in a network under stochastic demand. Current approaches to network seat inventory control are based on either full assignment or bucket control. Under full assignment, all seats on each flight leg are assigned to a specific single- or multi-leg itinerary. Under bucket control seats are assigned to groups of itineraries. The flexible assignment approach proposed in this paper assigns some seats exclusively to each single- or multi-leg itinerary as in fixed assignment and assigns the remaining seats to groups of itineraries as in bucket control. This paper formulates the flexible assignment approach, develops rules for optimal assignment for a single-fare-class network and proves the superiority of this approach to either fixed assignment or bucket control. A numerical simulation is ised to illustrate the differences in expected revenue among these three methods of seat inventory control for four different demand scenarios.

Suggested Citation

  • Wong, Jinn-Tsai & Koppelman, Frank S. & Daskin, Mark S., 1993. "Flexible assignment approach to itinerary seat allocation," Transportation Research Part B: Methodological, Elsevier, vol. 27(1), pages 33-48, February.
    • Handle: RePEc:eee:transb:v:27:y:1993:i:1:p:33-48
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    Cited by:

    1. Popovic, Jovan & Teodorovic, Dusan, 1997. "An adaptive method for generating demand inputs to airline seat inventory control models," Transportation Research Part B: Methodological, Elsevier, vol. 31(2), pages 159-175, April.
    2. L. F. Escudero & J. F. Monge & D. Romero Morales & J. Wang, 2013. "Expected Future Value Decomposition Based Bid Price Generation for Large-Scale Network Revenue Management," Transportation Science, INFORMS, vol. 47(2), pages 181-197, May.
    3. Ben Li & Xiaolong Guo & Liang Liang, 2024. "Optimal pricing decision and capacity allocation of opaque selling in airline revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 23(4), pages 356-368, August.
    4. de Boer, Sanne V. & Freling, Richard & Piersma, Nanda, 2002. "Mathematical programming for network revenue management revisited," European Journal of Operational Research, Elsevier, vol. 137(1), pages 72-92, February.
    5. Jeffrey I. McGill & Garrett J. van Ryzin, 1999. "Revenue Management: Research Overview and Prospects," Transportation Science, INFORMS, vol. 33(2), pages 233-256, May.
    6. Peng-Sheng You, 1999. "Dynamic Pricing in Airline Seat Management for Flights with Multiple Flight Legs," Transportation Science, INFORMS, vol. 33(2), pages 192-206, May.
    7. Wong, Jinn-Tsai, 1997. "Basic concepts for a system for advance booking for highway use," Transport Policy, Elsevier, vol. 4(2), pages 109-114, April.

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