REVENUE MANAGEMENT MODEL BASED ON CAPACITY SHARING AND OVERBOOKING IN THE AIRLINE
Aviation industry often faced uncertainty demand and high level of cancellation. Revenue management in the airline is related to demand management policies to classify and estimate the various requests of pricing and capacity control. This study will develop airline revenue management model integrat...
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| Format: | Article |
| Language: | English |
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University of Brawijaya
2018-12-01
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| Series: | Journal of Engineering and Management in Industrial System |
| Subjects: | |
| Online Access: | https://jemis.ub.ac.id/index.php/jemis/article/view/311 |
| _version_ | 1819079240724774912 |
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| author | Oki Anita Candra Dewi |
| author_facet | Oki Anita Candra Dewi |
| author_sort | Oki Anita Candra Dewi |
| collection | DOAJ |
| description | Aviation industry often faced uncertainty demand and high level of cancellation. Revenue management in the airline is related to demand management policies to classify and estimate the various requests of pricing and capacity control. This study will develop airline revenue management model integrates luggage passengers with air cargo based on the control of air cargo space. The airline must pay attention to customer behavior due to high cancellation and no-show. In this case we deal with the aspect of the overbooking in which one of the ways to reduce the cost of spoilage due to cancellation or no show. Moreover, in this proposed model, we discuss the expected revenue function to maximize the expected revenue from the policies of accept or reject the booking requests between passengers and air cargo by the same airline. This study aims to develop expected revenue in the dynamic programming model in order to maximize the revenue expectations of the policy of accepting and rejecting booking request between passengers with air cargo in the same airline. |
| first_indexed | 2024-12-21T19:25:51Z |
| format | Article |
| id | doaj.art-e5a046601470461db5c53afcc654ebf2 |
| institution | Directory Open Access Journal |
| issn | 2338-3925 2477-6025 |
| language | English |
| last_indexed | 2024-12-21T19:25:51Z |
| publishDate | 2018-12-01 |
| publisher | University of Brawijaya |
| record_format | Article |
| series | Journal of Engineering and Management in Industrial System |
| spelling | doaj.art-e5a046601470461db5c53afcc654ebf22022-12-21T18:52:50ZengUniversity of BrawijayaJournal of Engineering and Management in Industrial System2338-39252477-60252018-12-0162869410.21776/ub.jemis.2018.006.02.3202REVENUE MANAGEMENT MODEL BASED ON CAPACITY SHARING AND OVERBOOKING IN THE AIRLINEOki Anita Candra Dewi0Universitas Internasional Semen IndonesiaAviation industry often faced uncertainty demand and high level of cancellation. Revenue management in the airline is related to demand management policies to classify and estimate the various requests of pricing and capacity control. This study will develop airline revenue management model integrates luggage passengers with air cargo based on the control of air cargo space. The airline must pay attention to customer behavior due to high cancellation and no-show. In this case we deal with the aspect of the overbooking in which one of the ways to reduce the cost of spoilage due to cancellation or no show. Moreover, in this proposed model, we discuss the expected revenue function to maximize the expected revenue from the policies of accept or reject the booking requests between passengers and air cargo by the same airline. This study aims to develop expected revenue in the dynamic programming model in order to maximize the revenue expectations of the policy of accepting and rejecting booking request between passengers with air cargo in the same airline.https://jemis.ub.ac.id/index.php/jemis/article/view/311revenue managementcustomer behavioraviation industry |
| spellingShingle | Oki Anita Candra Dewi REVENUE MANAGEMENT MODEL BASED ON CAPACITY SHARING AND OVERBOOKING IN THE AIRLINE Journal of Engineering and Management in Industrial System revenue management customer behavior aviation industry |
| title | REVENUE MANAGEMENT MODEL BASED ON CAPACITY SHARING AND OVERBOOKING IN THE AIRLINE |
| title_full | REVENUE MANAGEMENT MODEL BASED ON CAPACITY SHARING AND OVERBOOKING IN THE AIRLINE |
| title_fullStr | REVENUE MANAGEMENT MODEL BASED ON CAPACITY SHARING AND OVERBOOKING IN THE AIRLINE |
| title_full_unstemmed | REVENUE MANAGEMENT MODEL BASED ON CAPACITY SHARING AND OVERBOOKING IN THE AIRLINE |
| title_short | REVENUE MANAGEMENT MODEL BASED ON CAPACITY SHARING AND OVERBOOKING IN THE AIRLINE |
| title_sort | revenue management model based on capacity sharing and overbooking in the airline |
| topic | revenue management customer behavior aviation industry |
| url | https://jemis.ub.ac.id/index.php/jemis/article/view/311 |
| work_keys_str_mv | AT okianitacandradewi revenuemanagementmodelbasedoncapacitysharingandoverbookingintheairline |