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Improvement Of Tarom Activity By Overbooking Policy

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  • Cãtãlin PETRUª
  • ªtefan CORCODEL

Abstract

The purpose of this article is to highlight the need for overbooking policy application in an airline. For this we conducted simulations to highlight the effect of overbooking policies on company revenues, and in our case we consider the example of OTP-IAS, considering the flights that require application of overbooking policy only flights with a load factor over 90% during 2012. Overbooking means deliberate booking confirmation for a larger number of seats than the physical capacity available in an aircraft. In this way it seeks compensation for situations where some passengers ticket holders fail to reach the flight, therefore they are declared missing at the time of the flight. In aviation terminology, are called no show passengers.

Suggested Citation

  • Cãtãlin PETRUª & ªtefan CORCODEL, 2013. "Improvement Of Tarom Activity By Overbooking Policy," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(1), pages 381-388, November.
    • Handle: RePEc:rom:mancon:v:7:y:2013:i:1:p:381-388
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    2. Lawrence W. Robinson, 1995. "Optimal and Approximate Control Policies for Airline Booking with Sequential Nonmonotonic Fare Classes," Operations Research, INFORMS, vol. 43(2), pages 252-263, April.
    3. Serguei Netessine & Robert Shumsky, 2002. "Introduction to the Theory and Practice of Yield Management," INFORMS Transactions on Education, INFORMS, vol. 3(1), pages 34-44, September.
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