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Airline overbooking in the multi-class case

Author

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  • J Coughlan

    (Dublin Institute of Technology)

Abstract

This paper presents an airline overbooking model at a class level for one service compartment–cabin. Class level demand data is used to determine the number of bookings that can be taken for each class. The model is optimised through the use of multi-dimensional search routines. The control level model developed is tested with data supplied by Ireland's national airline, Aer Lingus. The model shows a significant improvement over previous methods employed by Aer Lingus and was subsequently adopted by the airline.

Suggested Citation

  • J Coughlan, 1999. "Airline overbooking in the multi-class case," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(11), pages 1098-1103, November.
    • Handle: RePEc:pal:jorsoc:v:50:y:1999:i:11:d:10.1057_palgrave.jors.2600712
    DOI: 10.1057/palgrave.jors.2600712
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    Citations

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    Cited by:

    1. Huseyin Topaloglu & S. Ilker Birbil & J. B. G. Frenk & Nilay Noyan, 2012. "Tractable Open Loop Policies for Joint Overbooking and Capacity Control Over a Single Flight Leg with Multiple Fare Classes," Transportation Science, INFORMS, vol. 46(4), pages 460-481, November.
    2. Lan, Yingjie & Ball, Michael O. & Karaesmen, Itir Z. & Zhang, Jean X. & Liu, Gloria X., 2015. "Analysis of seat allocation and overbooking decisions with hybrid information," European Journal of Operational Research, Elsevier, vol. 240(2), pages 493-504.
    3. Guo, Xiaolong & Dong, Yufeng & Ling, Liuyi, 2016. "Customer perspective on overbooking: The failure of customers to enjoy their reserved services, accidental or intended?," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 65-72.
    4. Yingjie Lan & Michael O. Ball & Itir Z. Karaesmen, 2011. "Regret in Overbooking and Fare-Class Allocation for Single Leg," Manufacturing & Service Operations Management, INFORMS, vol. 13(2), pages 194-208, December.
    5. Alexander Erdelyi & Huseyin Topaloglu, 2010. "A Dynamic Programming Decomposition Method for Making Overbooking Decisions Over an Airline Network," INFORMS Journal on Computing, INFORMS, vol. 22(3), pages 443-456, August.
    6. Wang, Xiaojia & Fung, Richard Y.K., 2014. "An option-based hedging mechanism for managing the risk of overbooking in parallel airline alliances," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 146-162.
    7. Nurşen Aydın & Ş. İlker Birbil & Hüseyin Topaloğlu, 2017. "Delayed Purchase Options in Single-Leg Revenue Management," Transportation Science, INFORMS, vol. 51(4), pages 1031-1045, November.
    8. 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.
    9. Ming Xu & Yan Jiao & Xiaoming Li & Qingfeng Cao & Xiaoyang Wang, 2015. "A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-18, July.

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