Research On Callable System In Seat Inventory Control Of Revenue Management

This paper brings forward analytical groping study on the new approach namedcallable system, which is based on the revenue management and band together thetheory of seat inventory control. The aim of this paper is to make up the loss of thenon-veracious forecast and manifold the expected revenue of airlines through usingthis new method callable system. It also has the decision support function. The maincontent of this paper includes the following aspects: By analysing the scarcity of thetheory of seat inventory control, this paper firstly designs the necessity of theimplementation of callable system; Then, this paper puts forward an argument on theapplication foundation and feasibility of the new method with the theory of consumerbehaviour; Thirdly, with the theory of probability and statistics, in this paper, wemodel the revenue after the application of callable system with different compensatingmeans whether have overbooking or not and contrast with the traditional one, theexpected net increased revenue is used as a guideline. The result is that in severalconditions, the new approach may gain better revenue. Fourthly, examples are givento explain the model. The influence of using different parameters is discussed. Finally,this paper concludes the strongpoint and deficiency of callable system. It alsodiscusses the influencing factor through its application.