Optimal Airline Seat Inventory Control for Multi-Leg Flights
| Authors: | Nechval Nicholas, University of Latvia, Latvia
Nechval Konstantin N., University of Latvia, Latvia
Rozite Kristine, University of Latvia, Latvia
Vasermanis Edgars K., University of Latvia, Latvia |
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| Topic: | 7.4 Transportation Systems |
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| Session: | Air and Rail Control Systems |
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| Keywords: | Aircraft, transportation, data, model-based control, optimization |
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Abstract
In this paper, the problem of determining optimal booking policy for multiple fare classes in a pool of identical seats for multi-leg flights is considered. For large commercial airlines, efficiently setting and updating seat allocation targets for each passenger category on each multi-leg flight is an extremely difficult problem. This paper presents static and dynamic models of airline seat inventory control for multi-leg flights with multiple fare classes, which allow one to maximize an expected contribution to profit. The dynamic model uses the most recent demand and capacity information and allows one to allocate seats dynamically and anticipatory over time.
