The University of Southampton
University of Southampton Institutional Repository

Maximizing revenue in the airline industry under one-way pricing

Anjos, M.F., Cheng, R.C.H. and Currie, C.S.M. (2004) Maximizing revenue in the airline industry under one-way pricing Journal of the Operational Research Society, 55, (5), pp. 535-541. (doi:10.1057/palgrave.jors.2601721).

Record type: Article


The paper describes a methodology that has been implemented in a major British airline to find the optimal price to charge for airline tickets under one-way pricing. An analytical model has been developed to describe the buying behaviour of customers for flights over the selling period. Using this model and a standard analytical method for constrained optimization, we can find an expression for the optimal price structure for a flight. The expected number of bookings made on each day of the selling period and in each fare class given these prices can then be easily calculated. A simulation model is used to find the confidence ranges on the numbers of bookings and these ranges can be used to regulate the sale of tickets. A procedure to update the price structure based on the remaining capacity has also been developed.

Full text not available from this repository.

More information

Published date: 2004
Keywords: air transport, revenue management, simulation, yield management
Organisations: Operational Research


Local EPrints ID: 29633
ISSN: 0160-5682
PURE UUID: b95c5b96-5120-46a6-bf58-8d49bbf089e7

Catalogue record

Date deposited: 11 May 2006
Last modified: 17 Jul 2017 15:57

Export record



Author: M.F. Anjos
Author: R.C.H. Cheng
Author: C.S.M. Currie

University divisions

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton:

ePrints Soton supports OAI 2.0 with a base URL of

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.