An Optimal Model For Intercity Train Operation Planning Based On Revenue Management

In the period of Chinese major reform of the railway, high speed rail construction period, the railway company has obtained the power of ticket pricing, which means that Chinese railway tends to be the market. In the face of the fierce competition in the road transportation and air transportation, if we want to improve passenger railway market share and increase revenue, the railway corporation need to use scientific management methods to organize railway transportation. A good train operation planning not only can serve the passengers but also can maximize the revenue. The successful application of revenue management in other areas, such as air travel, allows managers to see the feasibility of its application in the railway passenger transportation.Capacity control (seat control) is one of the core content revenue management. Therefore, this paper describes the current research situation of seat Control and passenger train planning. This paper analyzes feasibility of revenue management as a tool optimizing the intercity passenger railway. And we focus on maximizing the operator’s revenue. In this paper, the main core of about two points:(1) Making a train planning during operating horizon T and opening interval t.We assume that the passenger demand obeys the Poisson distribution, and according to the demand of passengers to various OD intercity railway transportation network, the railway companies aim to maximize the income of making train service plan. The main constraints considered are transport capacity constraints, passenger bound train capacity, revenue constraints. This article assumes that the demand of tourists Poisson distribution, and in accordance with the demand for intercity passenger rail transport networks of various types of OD, in order to maximize operator’s revenue.(2) Model solving. There are three variables in the model that is the number of seats, the train planning and stop schedule. By simplifying the model, the use of matlab toolbox CVX algorithm. And an empirical study (Chengdu-Chongqing) is conducted to demonstrate the efficacy and efficiency of the algorithm. Finally we get a seat allocation table, train planning and stop schedule to verify the feasibility of the model.