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An Algorithm for Calculating Consistent Itinerary Flows

Author

Listed:
  • Robert L. Phillips

    (Decision Focus Incorporated, Los Altos, California 94022)

  • Dean W. Boyd

    (Decision Focus Incorporated, Los Altos, California 94022)

  • Thomas A. Grossman

    (Decision Focus Incorporated, Los Altos, California 94022)

Abstract

As airlines have moved toward more concentrated “hub-and-spoke” schedules, connecting passengers have become an increasingly important part of their loads and revenues. Yet, many optimization approaches to such airline planning problems as revenue management and aircraft assignment have ignored the “cross-leg” effects of seating capacity on connecting traffic and the associated revenue. This paper presents a simple approach for calculating consistent on-board itinerary flows and the corresponding loads, revenues and marginal seat values given a set of underlying demands and an assignment of seating capacities to legs. An application of this approach to a large-scale airline network is presented and the implication of the results for decision-making discussed. Although the approach is presented in the context of airline planning, it is applicable to any transportation system in which connecting traffic plays a significant part as well as to hotel and automobile rentals.

Suggested Citation

  • Robert L. Phillips & Dean W. Boyd & Thomas A. Grossman, 1991. "An Algorithm for Calculating Consistent Itinerary Flows," Transportation Science, INFORMS, vol. 25(3), pages 225-239, August.
    • Handle: RePEc:inm:ortrsc:v:25:y:1991:i:3:p:225-239
    DOI: 10.1287/trsc.25.3.225
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    File URL: http://dx.doi.org/10.1287/trsc.25.3.225
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    Citations

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    Cited by:

    1. William L. Cooper, 2002. "Asymptotic Behavior of an Allocation Policy for Revenue Management," Operations Research, INFORMS, vol. 50(4), pages 720-727, August.
    2. Hai Jiang & Cynthia Barnhart, 2009. "Dynamic Airline Scheduling," Transportation Science, INFORMS, vol. 43(3), pages 336-354, August.
    3. Liang, Zhe & Feng, Yuan & Zhang, Xiaoning & Wu, Tao & Chaovalitwongse, Wanpracha Art, 2015. "Robust weekly aircraft maintenance routing problem and the extension to the tail assignment problem," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 238-259.
    4. Hanif D. Sherali & Ebru K. Bish & Xiaomei Zhu, 2005. "Polyhedral Analysis and Algorithms for a Demand-Driven Refleeting Model for Aircraft Assignment," Transportation Science, INFORMS, vol. 39(3), pages 349-366, August.
    5. Sherali, Hanif D. & Bish, Ebru K. & Zhu, Xiaomei, 2006. "Airline fleet assignment concepts, models, and algorithms," European Journal of Operational Research, Elsevier, vol. 172(1), pages 1-30, July.
    6. Jeffrey I. McGill & Garrett J. van Ryzin, 1999. "Revenue Management: Research Overview and Prospects," Transportation Science, INFORMS, vol. 33(2), pages 233-256, May.
    7. Zhe Liang & Wanpracha Art Chaovalitwongse & Huei Chuen Huang & Ellis L. Johnson, 2011. "On a New Rotation Tour Network Model for Aircraft Maintenance Routing Problem," Transportation Science, INFORMS, vol. 45(1), pages 109-120, February.
    8. Jonathan Dumas & François Soumis, 2008. "Passenger Flow Model for Airline Networks," Transportation Science, INFORMS, vol. 42(2), pages 197-207, May.

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