Research On Airline Seat Inventory Control

Since the enormous potential profitability of Revenue Management was recognized in the early 1980s, more and more airline company practice it to increase the passengers load and total profit. Airline seat inventory control is certainly one of the most important problems in Revenue Management. Airline seat inventory control is about "selling the right seats to the right people at the fight time". Airline seat inventory control entails the allocation of available seats to different fare classes with the goal of maximizing total income.At the beginning of this paper, the writer has do some analysis about the Chinese aero market structure, including regulation circumstance, the WTO, politic&economy circumstances, etc, and raised the proposal for Chinese aero corporate that Revenue Management is must be done to upgrade competitive ability.Based on the analysis of Go-show, No-show, and DB, This paper present a Overbooking model, On the simulate results of that the writer raise a new model different from the constraints.Then this paper Addresses the problem of determining optimal booking policies for two fare classes that share the same seating pool on one leg of an airline flight when seats are booked in a nested or non-nested fashion and when lower fare classes book before higher ones by 3 ways :OPT,PMP,DMP.After all, address the problem of determining optimal booking policies for multiple fare classes is addressed by EMSRb.In the last, the writer addressed the problem of multiple-leg flight with multiple fare by SLP, followed by a simulation of NHPP. Model SLP is a more flexible representation because it allows easy reduction of number of decision variables, it can be simplified to any extent by considering only a limited number of possible scenarios, e.g., low, average and high demand. This reduces the problem size significantly, while still taking into account part of the uncertainty about future demand.