Revenue Management for Parallel Flights with Customer-Choice Behavior Journal Article uri icon



  • We consider the simultaneous seat-inventory control of a set of parallel flights between a common origin and destination with dynamic customer choice among the flights. We formulate the problem as an extension of the classic multiperiod, single-flight “block demand” revenue management model. The resulting Markov decision process is quite complex, owing to its multidimensional state space and the fact that the airline’s inventory controls do affect the distribution of demand. Using stochastic comparisons, consumer-choice models, and inventory-pooling ideas, we derive easily computable upper and lower bounds for the value function of our model. We propose simulation-based techniques for solving the stochastic optimization problem and also describe heuristics based upon an extension of a well-known linear programming formulation. We provide numerical examples.

publication date

  • June 1, 2005

has restriction

  • closed

Date in CU Experts

  • June 26, 2014 10:05 AM

Full Author List

  • Zhang D; Cooper WL

author count

  • 2

Other Profiles

International Standard Serial Number (ISSN)

  • 0030-364X

Electronic International Standard Serial Number (EISSN)

  • 1526-5463

Additional Document Info

start page

  • 415

end page

  • 431


  • 53


  • 3