Alternative risk-averse approaches for airline network revenue management

Terciyanli E., AVŞAR Z. M.

TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW, vol.125, pp.27-46, 2019 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 125
  • Publication Date: 2019
  • Doi Number: 10.1016/j.tre.2019.02.002
  • Journal Name: TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.27-46
  • Keywords: Revenue management, Seat inventory control, Mathematical programming, Risk, DECISION-MAKING, MODEL
  • Middle East Technical University Affiliated: Yes

Abstract

In this study, seat inventory control is considered for airline networks. Alternative optimization models are proposed for risk-averse decision makers by incorporating the following measure: lower-semideviation of revenue from a given threshold level or expected revenue. Performance of the proposed models is tested in a simulation model for a sample network under different scenarios by using a nesting heuristic and simulating arrival pattern of the airline demand.