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).


Full text not available from this repository.


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.

Item Type: Article
Digital Object Identifier (DOI): doi:10.1057/palgrave.jors.2601721
ISSNs: 0160-5682 (print)
Keywords: air transport, revenue management, simulation, yield management

Organisations: Operational Research
ePrint ID: 29633
Date :
Date Event
Date Deposited: 11 May 2006
Last Modified: 16 Apr 2017 22:22
Further Information:Google Scholar

Actions (login required)

View Item View Item