The Role of Robust Optimization in Single-Leg Airline Revenue Management

In this paper, we introduce robust versions of the classical static and dynamic single-leg seat allocation models. These robust models take into account the inaccurate estimates of the underlying probability distributions. As observed by simulation experiments, it turns out that for these robust versions the variability compared to their classical counterparts is considerably reduced with a negligible decrease in average revenue.

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Year of publication:	2009
Authors:	\c{S}. \.Ilker Birbil ; Frenk, J. B. G. ; Gromicho, Joaquim A. S. ; Zhang, Shuzhong
Published in:	Management Science. - Institute for Operations Research and the Management Sciences - INFORMS, ISSN 0025-1909. - Vol. 55.2009, 1, p. 148-163
Publisher:	Institute for Operations Research and the Management Sciences - INFORMS
Subject:	airline revenue management \| single-leg problems \| static models \| dynamic models \| robust optimization

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Extent:	application/pdf
Type of publication:	Article
Other identifiers:	10.1287/mnsc.1070.0843 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009208599