Airline Revenue Management Inventory Control Models With Demand Amendment And Updating

Along with the development of service industry, widespread attention has been paid on revenue management, which is a great success in airline and hotel industry, now being extend widely to other industries, including travel, restaurant, entertainment, broadcast, transportation, communication and energy supply. Few research , however ,has been made on the demand forecast ,which is essential in the fulfillment of revenue management .then the amendment and updating of the demand is also unsatisfactorily resolved. Meanwhile, EMSR model, the milestone of Revenue Management inventory control model is also flawed with the demand updating and the difficulty of upgrade under low rate of demand.The author explores in study of demand amendment and updating, and the revenue management inventory control strategies. He begins with analyzing the satisfied conditions of customer demand of a airline, then points out the strictly constrain of the customer demand, Accordingly the study of demand amendment is rather significant to the practice of ithis airline. The author put forward the method of demand amendment based on the inquiry information of the customers, He successfully processes, with the help of MNL model, the inquiry information under the situation of bid price on the internet and choice of the consumers. Based upon analysis of the deficiency of EMSR model ,the author combines the prior distributions of demand with the latest marketing information collected in the selling process , then renews the distributions of demand with Bayesian models which obeying bivariate normal distribution , under considering of the relation between the demand of different classes of seats .then draws a comparisonbetween the updating demand and the sum of overbooking level and the total seats to get the number of saleable seats , and consequently settles the difficulty ofupgrade under low rate of demand. Finally analyzing the basic data whichneeded in demand amendment and updating in the reality. The author presents the necessary data catalogue and warns the possible difficulties in practice, and brings forth the blockdiagram of revenue management inventory control ,which is based on demand amendment and updating.