|edoc-Server der Humboldt-Universität zu Berlin|
Andris Möller, Humboldt-Universität|
Werner Römisch, Humboldt-Universität
Klaus Weber, Lufthansa Systems
|Title:||Airline Network Revenue Management by Multistage Stochastic Programming|
|Date of Acceptance:||14.12.2006|
Stochastic Programming E-Print Series |
|Editors:||Julie L. Higle; Werner Römisch; Surrajeet Sen|
|Complete Preprint:||pdf (urn:nbn:de:kobv:11-10072315)|
|Metadata export: To export the complete metadata set as Endote or Bibtex format please click to the appropriate link.||Endnote Bibtex|
|print on demand: If you click on this icon you can order a print copy of this publication.|
|A multistage stochastic programming approach to airline network revenue management is presented. The objective is to determine seat protection levels for all itineraries, fare classes, point of sales of the airline network and all data collection points of the booking horizon such that the expected revenue is maximized. While the passenger demand and cance- lation rate processes are the stochastic inputs of the model, the stochastic protection level process represents its output and allows to control the booking process. The stochastic passenger demand and cancelation rate processes are approximated by a ﬁnite number of tree structured scenarios. The scenario tree is generated from historical data using a stability-based recursive scenario reduction scheme. Numerical results for a small hub-and-spoke network are reported.|
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