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Evaluating airlines ticket distribution strategies: a simulation-based approach

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  • Ahmed Abdelghany
  • Khaled Abdelghany

Abstract

This paper presents a modelling framework to evaluate ticket distribution strategies for commercial airlines. The framework adopts a micro-simulation approach that replicates how prospective travellers select their travel itineraries that are provided through ticket distribution channels. The model simulates travellers' itinerary choices at the disaggregate level and dynamically updates seat availability on the different itineraries. The model examines the trade-offs between two common types of ticket distribution channels: (1) distribution channels with high market penetration and high competition among subscribed airlines (e.g. Travelocity, Expedia, Orbitz) vs. (2) distribution channels with low market penetration and low airlines competition (e.g. aa.com, continental.com).

Suggested Citation

  • Ahmed Abdelghany & Khaled Abdelghany, 2007. "Evaluating airlines ticket distribution strategies: a simulation-based approach," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 1(3), pages 231-246.
    • Handle: RePEc:ids:ijrevm:v:1:y:2007:i:3:p:231-246
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    Cited by:

    1. Ahmed Abdelghany & Khaled Abdelghany & Ching-Wen Huang, 2021. "An integrated reinforced learning and network competition analysis for calibrating airline itinerary choice models with constrained demand," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(3), pages 227-247, June.

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