IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v16y2017i6d10.1057_s41272-017-0098-9.html
   My bibliography  Save this article

Do hybrid forecasting and forecast multipliers still work in a “perfectly tuned” PODS international network with four competing airlines?

Author

Listed:
  • Larry Weatherford

    (College of Business)

Abstract

We have seen many results over the years where various ‘intelligent aggressiveness’ levers (e.g., forecast multipliers, aggressive unconstrainers, hybrid forecasting, and/or fare adjustment) have been used effectively by an individual airline in a competitive environment to increase its revenues. The research question studied here is whether an airline can still use any of these methods to increase revenue in a competitive environment where all the competing airlines are “perfectly” aggressive. This paper will answer the question in the Passenger Origin–Destination Simulator Network U10 (a large international network with 572 origin–destination markets with four airlines competing for passengers, including a low-cost carrier).

Suggested Citation

  • Larry Weatherford, 2017. "Do hybrid forecasting and forecast multipliers still work in a “perfectly tuned” PODS international network with four competing airlines?," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(6), pages 580-593, December.
  • Handle: RePEc:pal:jorapm:v:16:y:2017:i:6:d:10.1057_s41272-017-0098-9
    DOI: 10.1057/s41272-017-0098-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-017-0098-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1057/s41272-017-0098-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. William L. Cooper & Tito Homem-de-Mello & Anton J. Kleywegt, 2006. "Models of the Spiral-Down Effect in Revenue Management," Operations Research, INFORMS, vol. 54(5), pages 968-987, October.
    2. Belobaba, Peter P. & Wilson, John L., 1997. "Impacts of yield management in competitive airline markets," Journal of Air Transport Management, Elsevier, vol. 3(1), pages 3-9.
    3. Tassio A. Carvalho & Warren B. Powell, 2000. "A Multiplier Adjustment Method for Dynamic Resource Allocation Problems," Transportation Science, INFORMS, vol. 34(2), pages 150-164, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Larry Weatherford, 2018. "Simulation shows not to panic about bid price dysfunction close to departure," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(6), pages 403-419, December.
    2. William L. Cooper & Tito Homem-de-Mello & Anton J. Kleywegt, 2015. "Learning and Pricing with Models That Do Not Explicitly Incorporate Competition," Operations Research, INFORMS, vol. 63(1), pages 86-103, February.
    3. Larry Weatherford, 2019. "Performance of dynamic user influence strategies in PODS under seasonality and system volatility," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(1), pages 2-26, February.
    4. Soonhui Lee & Tito Homem-de-Mello & Anton Kleywegt, 2012. "Newsvendor-type models with decision-dependent uncertainty," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 76(2), pages 189-221, October.
    5. Zhao, Guihong & Cui, Yue & Cheng, Shaoyu, 2021. "Dynamic pricing of ancillary services based on passenger choice behavior," Journal of Air Transport Management, Elsevier, vol. 94(C).
    6. Gregory A. Godfrey & Warren B. Powell, 2002. "An Adaptive Dynamic Programming Algorithm for Dynamic Fleet Management, II: Multiperiod Travel Times," Transportation Science, INFORMS, vol. 36(1), pages 40-54, February.
    7. Banerjee, Nilabhra & Morton, Alec & Akartunalı, Kerem, 2020. "Passenger demand forecasting in scheduled transportation," European Journal of Operational Research, Elsevier, vol. 286(3), pages 797-810.
    8. Jeffrey I. McGill & Garrett J. van Ryzin, 1999. "Revenue Management: Research Overview and Prospects," Transportation Science, INFORMS, vol. 33(2), pages 233-256, May.
    9. Ko, Young Dae, 2019. "The airfare pricing and seat allocation problem in full-service carriers and subsidiary low-cost carriers," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 92-102.
    10. E. Andrew Boyd & Ioana C. Bilegan, 2003. "Revenue Management and E-Commerce," Management Science, INFORMS, vol. 49(10), pages 1363-1386, October.
    11. Zhu, Chenbo & Hu, JianQiang, 2020. "Revenue management games with government mandate," Omega, Elsevier, vol. 93(C).
    12. Breffni M Noone, 2016. "Pricing for hotel revenue management: Evolution in an era of price transparency," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 264-269, July.
    13. den Boer, Arnoud V. & Sierag, Dirk D., 2021. "Decision-based model selection," European Journal of Operational Research, Elsevier, vol. 290(2), pages 671-686.
    14. Cynthia Barnhart & Peter Belobaba & Amedeo R. Odoni, 2003. "Applications of Operations Research in the Air Transport Industry," Transportation Science, INFORMS, vol. 37(4), pages 368-391, November.
    15. Opher Baron & Iman Hajizadeh & Joseph Milner, 2011. "Now Playing: DVD Purchasing for a Multilocation Rental Firm," Manufacturing & Service Operations Management, INFORMS, vol. 13(2), pages 209-226, April.
    16. Omar Besbes & Assaf Zeevi, 2015. "On the (Surprising) Sufficiency of Linear Models for Dynamic Pricing with Demand Learning," Management Science, INFORMS, vol. 61(4), pages 723-739, April.
    17. Ming Hu & Yan Liu & Wenbin Wang, 2019. "Socially Beneficial Rationality: The Value of Strategic Farmers, Social Entrepreneurs, and For-Profit Firms in Crop Planting Decisions," Management Science, INFORMS, vol. 65(8), pages 3654-3672, August.
    18. Garrett van Ryzin & Gustavo Vulcano, 2015. "A Market Discovery Algorithm to Estimate a General Class of Nonparametric Choice Models," Management Science, INFORMS, vol. 61(2), pages 281-300, February.
    19. Mila Nambiar & David Simchi-Levi & He Wang, 2019. "Dynamic Learning and Pricing with Model Misspecification," Management Science, INFORMS, vol. 65(11), pages 4980-5000, November.
    20. Koo, Tay T.R. & Tan, David T. & Duval, David Timothy, 2013. "Direct air transport and demand interaction: A vector error-correction model approach," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 14-19.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:16:y:2017:i:6:d:10.1057_s41272-017-0098-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.