Continuous-Time Airline Overbooking with Time-Dependent Fares and Refunds
Transportation Science
Airline Yield Management with Overbooking, Cancellations, and No-Shows
Transportation Science
Passenger-based predictive modeling of airline no-show rates
Proceedings of the ninth ACM SIGKDD international conference on Knowledge discovery and data mining
Overbooking with Substitutable Inventory Classes
Operations Research
Stochastic Comparisons in Production Yield Management
Operations Research
A Robust Optimization Approach to Inventory Theory
Operations Research
Revenue Management with Limited Demand Information
Management Science
Regret in the Newsvendor Model with Partial Information
Operations Research
The Role of Robust Optimization in Single-Leg Airline Revenue Management
Management Science
Toward Robust Revenue Management: Competitive Analysis of Online Booking
Operations Research
Game theory and the practice of revenue management
Proceedings of the Behavioral and Quantitative Game Theory: Conference on Future Directions
| Hi-index | 0.00 |
Focusing on a seller's regret in not acting optimally, we develop a model of overbooking and fare-class allocation in the multifare, single-resource problem in revenue management. We derive optimal static overbooking levels and booking limits, in closed form, that minimize the maximum relative regret (i.e., maximize competitive ratio). We prove that the optimal booking limits are nested. Our work addresses a number of important issues. (i) We use partial information, which is critical because of the difficulty in forecasting fare-class demand. Demand and no-shows are characterized using interval uncertainty in our model. (ii) We make joint overbooking and fare-class allocation decisions. (iii) We obtain conservative but practical overbooking levels that improve the service quality without sacrificing profits. Using computational experiments, we benchmark our methods to existing ones and show that our model leads to effective, consistent, and robust decisions.