Research On The Several Issues About Pricing Model In Airline Revenue Management

Airline Revenue Management technology refers to the necessary technical methods and technology support that airline companies adopted to enhance the core-competitiveness, seize and consolidate the market and ensure their rapid and steady development when in face with market challenges. Meanwhile with the development and expansion of air transport industry, the advantages of aviation transport network is becoming more obvious and thus have been widely adopted, airline companies’ practical needs for management technology of aviation network revenue is increasingly urgent. After an in-depth analysis of the current research status and application situation of airline revenue management, due to the lack of versatile systematic theoretical support, the paper sets air network revenue management as the main research directions, tries to improve and enrich the ticket pricing model theory and expands airline overselling management theory by absorbing theories from other disciplines, thus to provide the more complex aviation network revenue management technology with universal theoretic programmed instruction. The main research work includes: considering the stochastic needs of travelers booking so as to lay the theoretical foundation for the pricing model establishment in the airline revenue management of a single leg, elaborating the single leg pricing and the basic process of overselling and accommodation control as well as the implementation status in specific cases, and then extended to multi-leg air ticket pricing, overselling and seat inventory control problems to solve practical problems, or even form general studies on much more complicated aviation network pricing, overselling and seat inventory control problems.When studied the airline revenue management of single-leg, this article carried out a full analysis on the basis of previous research results and the booking behavior of air travelers, abandoned previous methods of only considering about overselling volume and neglecting passengers’ demands, and proposed to regard air travelers’ booking behavior in pre-sale period as a Poisson process, predicted the traveler’s booking volume of airline tickets in the rest pre-sale period for the future based on statistical information such as the analysis of ticket sales, passenger booking rates, booking Poisson statistics intensity, utilized basic mathematical theories like advanced probability theory to establish a dynamic practical airline tickets overselling model that has taken the impact of randomness of travelers into consideration through reasonable deduction. And provide specific solutions according to the corresponding characteristics of the dynamic overselling model, meanwhile the effectiveness and maneuverability of it have been tested and verified through numerical simulation.In order to enrich and develop single leg airline revenue management theory, basic game theorywas introduced to discuss the game relationship between the needs of airlines and passengers about the ticket pre-sale price, studied travelers’ choice behavior in the ticket game by analyzing travel costs;According to the theory that price determines market demand in basic economics principles, this paper proposed to make ticket price, which can affect traveler’s choice behavior, as a regulator of the booking number, adopting the studies results of stochastic dynamic overselling model for the establishment of a synchronous control model for the dynamic airline ticket pricing that comprehensively considered the travel costs of passengers and passengers’ randomness like No-Show and other factors as well as overselling and seats, also the advantages of the established model have been effectively reflected through the verification and analysis of it by calculating specific case.When studied multi-leg airline revenue management, this paper mainly analyzed the influence of No-Show and DB on the actual earnings of airline companies when flights took off and landing for series times, and put forward the idea of dividing the flight revenue into two parts: the ticket sales revenue and ticket sales loss(No-Show and DB), and then spread the loss of ticket sales into the sum of each flight knot, thus established a general expression to the flight knot ticket sales losses; establish a general model of dynamic multi-leg ticket pricing and overselling and seats control on the premise of research studies on a control model for dynamic single-leg airline ticket pricing and for overselling and seats, the model also has been tested and verified by examples.When studied the aviation network earnings, this paper further conducted a more universal model research on the basis of control model of single-leg and multi-leg tickets pricing as well as overselling and seat inventory, proposed to split complicated aviation network of practical significance into the form of single segment and multi-segment portfolio, exploiting the features that the passenger flow in overlapping flight knot is in certain number to establish connections of ticket sales among all flights in the aviation network, and synchronously fulfill the target of controlling the ticket price in aviation network and overselling and seat inventory through the connections to form a organic combination of single-leg and multi-leg model. Derivation and discussion aiming at the two simple combinations has proved the feasibility of the control strategy, the accordingly established pricing management model also fits for network model in synchronous control of aviation network pricing, overselling and seat inventory.