In this paper, we researched three cases of revenue management within airline industry based on the types of passengers. Taking into account the uncertainty of demand and arrival process of passengers, we considered this RM problem from the perspective of online strategy and competitive analysis. A class of online booking policies dynamically adjusting to the set of orders previously offered at any point in time is proposed. We prove that this class of policies is the best one and compare the difference between these policies and another static online booking policy from a practical point of view. Although these two classes of policies have the same competitive ratios, their performance guarantees may be different facing certain instances.
Key words
revenue management /
dynamic strategy /
competitive analysis /
online booking policy
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References
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Footnotes
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