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OR Forum—OR and the Airline Overbooking Problem

Author

Listed:
  • Marvin Rothstein

    (University of Connecticut, Hartford, Connecticut)

Abstract

This paper surveys the application of operations research to airline overbooking, a distinctive problem of considerable significance to the public as well as the airline industry, and one which has received great attention in the press. The airlines have been overbooking their flights deliberately for decades, while moving gradually from a posture of categorical denial to a disclosure of their practices. Through the years, they have developed and employed a variety of statistical and tactical models to predict and control the consequences of this controversial procedure for increasing load factors. Yet, the situation still has not been resolved satisfactorily. The article analyzes the problems that motivate overbooking, discusses the relevant practices of the air carriers, and describes significant contributions and implementations of operations research.

Suggested Citation

  • Marvin Rothstein, 1985. "OR Forum—OR and the Airline Overbooking Problem," Operations Research, INFORMS, vol. 33(2), pages 237-248, April.
    • Handle: RePEc:inm:oropre:v:33:y:1985:i:2:p:237-248
    DOI: 10.1287/opre.33.2.237
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    File URL: http://dx.doi.org/10.1287/opre.33.2.237
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    Citations

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    Cited by:

    1. Fukui, Hideki & Nagata, Koki, 2020. "How do passengers react to airlines’ overbooking strategies? Evidence from the US airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 242-255.
    2. Muzaffer Buyruk & Ertan Güner, 2022. "Personalization in airline revenue management: an overview and future outlook," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 129-139, April.
    3. J. B. G. Frenk & Behrooz Pourghannad & Semih O. Sezer, 2017. "A Static Model in Single Leg Flight Airline Revenue Management," Transportation Science, INFORMS, vol. 51(1), pages 214-232, February.
    4. Robert Hjorth & Thomas Fiig & Jesper Larsen & Nicolas Bondoux, 2018. "Joint overbooking and seat allocation for fare families," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(6), pages 436-452, December.
    5. Nurşen Aydın & Ş. İlker Birbil & J. B. G. Frenk & Nilay Noyan, 2013. "Single-Leg Airline Revenue Management with Overbooking," Transportation Science, INFORMS, vol. 47(4), pages 560-583, November.
    6. Oleg Shcherbina & Elena Shembeleva, 2014. "Modeling recreational systems using optimization techniques and information technologies," Annals of Operations Research, Springer, vol. 221(1), pages 309-329, October.

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