Airline revenue management for continuous pricing : class-based and classless methods

The development of the New Distribution Capability for airlines has raised interest within the airline industry in "continuous pricing", where fares offered to customers are not limited to a set of pre-determined price points. This thesis provides an overview of experiments on four revenue management (RM) methods proposed for the practical implementation of continuous pricing. Two of these methods, termed class-based RM for continuous pricing, utilize existing forecasting and seat protection optimization methods to determine what fares to offer. The other two methods, termed classless RM, calculate optimal fares based on the maximization of expected revenue contribution at a given point in time during the booking process. This thesis examines the performance of probabilistic bidprice and unbucketed dynamic programming methods for both the class-based and the classless methods for continuous pricing.

Name thesis:degree_name

Master

Department dc:contributor.department

Massachusetts Institute of Technology. Department of Civil and Environmental Engineering

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2019

Author dc:creator

• Liotta, Nicholas James.

Advisor dc:contributor.advisor

• Peter P. Belobaba.

• Civil and Environmental Engineering.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/123123

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/123123