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An approach to adaptive robust revenue management with continuous demand management in a COVID-19 era

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  • B. Vinod

Abstract

The novel coronavirus pandemic has had a seismic impact on the travel industry. With a steep drop in customer demand and the inability of airlines to forecast demand for flights with any degree of accuracy, this paper proposes an alternative approach to revenue management that monitors key revenue management metrics and take corrective action with demand and supply levers to make the revenue plan happen. In a COVID-19 era, in the absence of reliable demand forecasts, this operationally driven robust revenue management approach is a viable alternative to manage seat inventory than traditional methods.

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  • B. Vinod, 2021. "An approach to adaptive robust revenue management with continuous demand management in a COVID-19 era," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(1), pages 10-14, February.
    • Handle: RePEc:pal:jorapm:v:20:y:2021:i:1:d:10.1057_s41272-020-00269-9
    DOI: 10.1057/s41272-020-00269-9
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    References listed on IDEAS

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    1. c{S}. .Ilker Birbil & J. B. G. Frenk & Joaquim A. S. Gromicho & Shuzhong Zhang, 2009. "The Role of Robust Optimization in Single-Leg Airline Revenue Management," Management Science, INFORMS, vol. 55(1), pages 148-163, January.
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    3. Dong Liang & Richard Ratliff & Norbert Remenyi, 2017. "Robust revenue opportunity modeling with quadratic programming," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(6), pages 569-579, December.
    4. Paat Rusmevichientong & Huseyin Topaloglu, 2012. "Robust Assortment Optimization in Revenue Management Under the Multinomial Logit Choice Model," Operations Research, INFORMS, vol. 60(4), pages 865-882, August.
    5. Georgia Perakis & Guillaume Roels, 2010. "Robust Controls for Network Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 12(1), pages 56-76, November.
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    Cited by:

    1. Giovanni Gatti Pinheiro & Thomas Fiig & Michael D. Wittman & Michael Defoin-Platel & Riccardo D. Jadanza, 2022. "Demand change detection in airline revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(6), pages 581-595, December.
    2. Fukushi, Mitsuyoshi & Delgado, Felipe & Raveau, Sebastián & Santos, Bruno F., 2022. "CHAIRS: A choice-based air transport simulator applied to airline competition and revenue management," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 297-315.
    3. Ian Yeoman, 2021. "Q. Can we manage demand in COVID-19 world? A. I don’t know," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(1), pages 1-2, February.

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