Optimal Network Revenue Management Decisions Including Flexible Demand Data and Overbooking
In aviation network revenue management it is helpful to address consumers who are flexible w.r.t. certain flight characteristics, e.g., departure times, number of intermediate stops, and booking class assignments. While overbooking has some tradition and the offering of so-called flexible products, in which some of the mentioned characteristics are not fixed in advance, is gaining increasing importance, the simultaneous handling of both aspects is new. We develop a DLP (deterministic linear programming) model that considers flexible products and overbooking and use an empirical example for the explanation of our findings.
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