Fill out this quick form for your free white paper

First Name
Last Name
Job Title
Phone Number
I agree that PROS may contact me. I can unsubscribe at any time.
By submitting this form, I agree to the storing and processing of personal data by PROS as described in our Terms of Use and Privacy Policies
Thank you!
Error - something went wrong!

Dynamic Capacity Sharing Models in Airline Revenue Management

We developed methodologies to dynamically determine prices for capacities in different resources.

More specifically, for each combination of remaining time available in the booking horizon and remaining seat inventories in all the compartments, we calculated the opportunity cost (bid price) to accommodate one more booking in each of the compartments, based on information such as expected total demand for each resource, allowable prices, and probabilities of having a customer who purchases at each of the allowable price points for each resource. By jointly considering the remaining capacities in all resources, we reduced revenue loss that results from the conventional approaches when too many economy updates are accepted and also created additional revenue by upgrading some portion of economy passengers into business compartment when the conventional approaches would have rejected them. 

Previous Article
Combating Buy Down through Airline Pricing Strategies
Combating Buy Down through Airline Pricing Strategies

There are different approaches to combating buy-down. Here are some airline pricing strategies PROS has exp...

Next Article
How to Improve Airline Interline Agreements
How to Improve Airline Interline Agreements

Increased international travel is great news for airlines but it also brings challenges. Learn 3 steps to ...

A Free Virtual Conference Experience

Register Now