Resilient revenue management: a literature survey of recent theoretical advances

Recently, resilience has emerged as a concept that describes a system’s ability to persist and adapt under uncertainty. Revenue management is a textbook example of planning under uncertainty – any revenue optimisation model relies on a range of assumptions, among them the accuracy of the demand forecast. Revenue management’s objective is to maximise revenue given uncertain market conditions, capacity, and even fares. This contribution reviews recent advances in making revenue management more resilient. To this end, it identifies and categorises uncertainties that affect the revenue management process. In the resulting framework, we review contributions aiming to increase solutions’ ability to persist or adapt, listing relevant references by their focus and character. Thereby, we contribute a comprehensive review of research accumulated in the last ten years, outline a research agenda, and thus prepare the ground for further research efforts.