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Efficiency measurement for revenue management

Author

Listed:
  • Fedor Nikitin

    (Finnair)

  • Antti Tolvanen

    (Finnair)

Abstract

New measure for revenue management efficiency based on the information ratio of the analyst decisions is introduced. Compared to the often-used revenue opportunity models based on greedy upper and lower revenues this measure is defined for all demand levels and inherently expresses the effect of demand forecast errors. In this study, we consider Gaussian demand vector with possibly non-zero covariance, although the model translates to any demand distribution.

Suggested Citation

  • Fedor Nikitin & Antti Tolvanen, 2022. "Efficiency measurement for revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(6), pages 638-644, December.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:6:d:10.1057_s41272-022-00387-6
    DOI: 10.1057/s41272-022-00387-6
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    References listed on IDEAS

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    1. Peter P. Belobaba, 1989. "OR Practice—Application of a Probabilistic Decision Model to Airline Seat Inventory Control," Operations Research, INFORMS, vol. 37(2), pages 183-197, April.
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    Cited by:

    1. Ian Yeoman, 2022. "How COVID-19 changed things and what we did about it," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(6), pages 579-580, December.

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