Research On Theory, Practice And Innovation Of Airline Revenue Management

Revenue Management is a set of ideas about sale management based on the micro demand. It's also a systematical method about products development and sales management.In this paper, details of Airline Revenue Management decision model was discussed, and the Overbooking decision model was presented, based on the deeply analysis of the Revenue Management research outcomes. Single-leg and multi-leg seat allocation optimization models were researched. Single-leg ESMR models and their practice was analyzed. Also, the virtual class model and the mathematical programming of multi-leg seat allocation optimization were analyzed. The Demand Value Balance model, a very valuable method, was presented.Flight and class level demand forecasting are critical inputs of Revenue Management decision model. Based on the deeply analysis of original demand, demand forecasting was discussed in this paper. Flight and class level demand forecasting method which was based on the history booking data was deeply analysed. Within these methods, regression forecasting, delta forecasting and seasonal index adjustment were used in our development of Airline Revenue Management System. And the application of ARIMA in flight demand forecasting was discussed. Market share model was discussed based on the analysis of passenger choice decision process.In addition, the framework of Cargo Revenue Management was established in this paper. Long-term capacity allocation, capacity availability, self-control in cargo sale process, cargo demand forecasting, cargo pricing and customer valuation was deeply analyzed.