Airline Revenue Management with a Focus on the Practice of “Overbooking”
Faculty Mentor Name
Jules Yimga
Format Preference
Poster
Abstract
This research empirically investigates whether airlines frequently engage in the practice of overbooking flights, and if it affects the demand for their services. The airline industry has changed significantly over past decades, with low-cost carriers now controlling a larger portion of the overall market, resulting in customer demand for lower fares. These two factors have largely resulted in the commoditization of base fares, leaving airlines to focus on identifying and managing new opportunities to grow revenue, profit, and productivity, and further differentiate their brands in the marketplace. Recent airline revenue management studies have emphasized two major elements; inventory control and overbooking, both calculated to help increase revenue and now considered a fundamental practice in airline revenue management. This analysis looks into a nextgeneration revenue management system to facilitate quick responses to competitive price, schedule, and operational changes, enabling decision analysis for the retailing and merchandising facets of their operations, and assisting airline personnel in understanding passengers’ requirements.
- POSTER PRESENTATION
- IGNITE AWARD
Location
ERAU - Prescott, AZ; AC1-Atrium, 11 am - 3 pm | Eagle Gym, 7 - 9 pm
Start Date
3-29-2019 11:00 AM
End Date
3-29-2019 9:00 PM
Airline Revenue Management with a Focus on the Practice of “Overbooking”
ERAU - Prescott, AZ; AC1-Atrium, 11 am - 3 pm | Eagle Gym, 7 - 9 pm
This research empirically investigates whether airlines frequently engage in the practice of overbooking flights, and if it affects the demand for their services. The airline industry has changed significantly over past decades, with low-cost carriers now controlling a larger portion of the overall market, resulting in customer demand for lower fares. These two factors have largely resulted in the commoditization of base fares, leaving airlines to focus on identifying and managing new opportunities to grow revenue, profit, and productivity, and further differentiate their brands in the marketplace. Recent airline revenue management studies have emphasized two major elements; inventory control and overbooking, both calculated to help increase revenue and now considered a fundamental practice in airline revenue management. This analysis looks into a nextgeneration revenue management system to facilitate quick responses to competitive price, schedule, and operational changes, enabling decision analysis for the retailing and merchandising facets of their operations, and assisting airline personnel in understanding passengers’ requirements.
- POSTER PRESENTATION
- IGNITE AWARD