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A New Approach To The Airline İndustries' Revenue Management Problem Through Options
(İstanbul Ticaret Üniversitesi, 2005) Türkmen, Banu; Asil Bulgak, Akif; Akgündüz, Ali
In the market place, service/product providers often use some limited resources to satisfy different demands. This practice leads to question of how to manage the selling process of limited resources to maximize the total revenue. This study presents an overview on the impact of dynamic capacity management through options approach for airline industries. A Revenue Management model using options approach is also presented. Capacity is an important constraint in seat inventory control and using the capacity in a more flexible way can bring operational efficiency with higher loading factors, that is defined as the ratio of passengers over total capacity for a flight leg. Options for the right of buying and selling plane tickets would potentially lead to a new proactive market realm by taking control in allocating capacity and to increase efficiency of the booking process.