Dynamic capacity allocation for airlines with multi-channel distribution

Kết quả hình ảnh cho single-leg flight fare class images

In this paper, we have studied the problem of capacity control in the single-leg flight fare class and multi-channel distribution. We proposed a dynamic programming model for integrating the fare class capacity allocation and the channel capacity deployment. After that, we have explored the optimal policy for the integrated model to maximum the airlines revenues and proposed several properties corresponding to the optimal policy. Furthermore, we proposed a customer shift behaviour model on the basis of the integrated model and discovered the optimal policy for that. The numerical experiments illustrate the different applications of the model and provide several implications for airline companies. Firstly, our system can keep the revenues more stable when channel commission rates increase. This implication decreases the lost revenue risk by contracting with the channel and holding the dominant position in airline market. Secondly, multiple indirect sales channels will not reduce airline company revenues, and, conversely, more indirect channels might bring more profits for the airline company. Therefore, the airlines should introduce more channels to improve their revenues. Thirdly, the demand forecast dominates a significant position in our system. The accurate prediction of demand improves the revenues for the airline company. After that, our system integrates the channel and fare class, and there is not an obvious conflict between the channel and fare class allocation. The airline company can realize channel control on the basis of the revenue system.

Collected and summarized from the source below by Ta Ngoc Diep:  https://db.vista.gov.vn:2095/science/article/pii/S0969699717303204