Research On Airline Revenue Management Based On Passenger Choice Behavior

With the rapid development of Chinese aviation industry, the competition between airlines is becoming increasingly fierce, each airline operators, investors continue to seek domestic and foreign strategic partners, also actively searching for improving enterprise management efficiency, improving the operation performance of the way and the method, in order to increase revenue, and enhance their own competitiveness. Based on the background of income management theory, from consumer behavior theories we analyze each level space with different discount ticket prices choice behavior, and then discuss the passengers for preferences and expect utility to all levels of different space choice probability problem. Then this paper discusses in order to achieve benefit maximization, faced with the strategy behavior of airline passengers, the airline company how to through the seat stock optimization control method achieve revenue maximization. Based on the classic seat inventory control model this paper through the passenger seat choice probability analysis and taking into account the dynamic response of the strategy passengers built passenger airline revenue model, and use Netlogosoftware to simulate the passenger strategy value, ticket price discount, the number of discount seats three parameter change on the impact of airline revenue. Finally, we can get the management enlightenment when the airline company face with strategy passengers based on decision choice behavior in seat inventory optimization control how to improve the airline revenue. The main research contents are as follows:(1) Introduction. This paper mainly expounds the research background and significance, summarizes the main research contents and introduces the research methods, thoughts and the technical route.(2) The Research of airline revenue management and passenger choice behavior. We have reviewed the research of revenue management and passenger choice behavior.Fistly,we summarized the main issues involved in the revenue management: Forecating,Overbooking,Seat inventory optimization and Pricing.Secondly, from the actual application of the theory of revenue management in different sectors we explored the application problem of revenue management.Thirdly,we reviewed the research of the theory and present from the two directions of the discrete choice model and the PODS passenger choice model.(3) The analysis of passenger airline choice behavior.From the theoretical point of consumer behavior we analys the influenceing factors of the passengers’choice on the accommodations of different levels and described the characteristics of the passengers’ choice behavior.(4) Airline revenue management models. Based on the passenger choice behavior theory and the seat inventory optimization control classic model, this paper considering the passengers strategy constructs aviation company income model to maximize the benefits.(5) Analogue simulation. Through Netlogo software to simulate the passenger strategy value, ticket price discount, the number of discount seats three parameter change on the impact of airline revenue, we can get the management enlightenment when the airline company face with strategy passengers how to maximize the benefits.(6) Summarize and prospect. The main research on this article summarized, and analysis the main problems and shortcomings in the present study, and in follow-up studies which direction we should focus on and which work we should engage in.