Simulation-based methods for booking control in network revenue management

Authors:
Sumit Kunnumkal;Huseyin Topaloglu
Affiliations:
Indian School of Business, Hyderabad, India;Cornell University, Ithaca, NY
Venue:
Proceedings of the Winter Simulation Conference
Year:
2010

Citing 6
Cited 0

An Analysis of Bid-Price Controls for Network Revenue Management

Management Science
A Randomized Linear Programming Method for Computing Network Bid Prices

Transportation Science
Revenue Management in a Dynamic Network Environment

Transportation Science
Computing Virtual Nesting Controls for Network Revenue Management Under Customer Choice Behavior

Manufacturing & Service Operations Management
Dynamic Bid Prices in Revenue Management

Operations Research
Simulation-Based Optimization of Virtual Nesting Controls for Network Revenue Management

Operations Research

Quantified Score

Hi-index	0.00

Visualization

Abstract

In this paper, we describe simulation-based stochastic approximation algorithms to find good bid price policies for booking control over an airline network. Our general approach visualizes the total expected profit as a function of the bid prices and searches for a good set of bid prices by using sample path derivatives of the total expected profit function. We demonstrate that the iterates of our stochastic approximation algorithms converge to a stationary point of the total expected profit function with probability one. Our computational experiments indicate that the bid prices computed by our approach perform quite well.