|Table of Contents|

Joint decision making of pricing and seat inventory control based on discrete time(PDF)

《交通运输工程学报》[ISSN:1671-1637/CN:61-1369/U]

Issue:
2016年06期
Page:
125-131
Research Field:
交通运输规划与管理
Publishing date:
2016-12-20

Info

Title:
Joint decision making of pricing and seat inventory control based on discrete time
Author(s):
GAO Jin-min1;  LE Mei-long2;  QU Lin-chi1
1. School of Economics and Management, Shanghai Maritime University, Shanghai 201306, China; 2. School of Civil Aviation, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, Jiangsu, China
Keywords:
air transportation;  revenue management;  dynamic pricing;  seat inventory control;  discrete time;  joint decision making
PACS:
U8
DOI:
-
Abstract:
In order to maximize the revenue of airline company, passenger booking and refunding tickets were regarded as two independent random processes. Poisson distribution was used to simulate the process of passenger booking tickets in the whole pre-sale period. Negative exponential distribution was used to simulate the process of passenger refunding tickets. The joint decision making model of air ticket pricing and seat inventory control based on discrete time was built from the perspective of using price to control demand. The solving idea and method of dynamic programming were used to solve the model. The air ticket being sold with which price in appropriate time period was determined. The number limit of ticket sales in each time period was set. The model was verified by an example. Analysis result shows that 80% discount, 70% discount, 60% discount, 50% discount, 40% discount, 30% discount, 20% discount, 10% discount and full price air tickets should be sold 60.00, 56.58, 52.87, 48.83, 44.38, 39.44, 33.88, 27.51 and 20.09 d in advance respectively. Booking limits should be 3, 43, 79, 111, 141, 171, 199, 227 and 290 respectively. The joint decision making model has validity and practicability. It can be used as the reference for the airline company to set price and control seat inventory reasonably. 2 tabs, 1 fig, 35 refs.

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Last Update: 2016-12-20