Airline Overbooking Control policy
|關鍵字:||超額訂位;艙位規劃;艙位配置;最佳訂位邊界;一次決策;overbooking;seat inventory control;seat allotment;optimal boundary;one-time decision|
In this study, an optimal boundary concept is developed for one-time decision airline overbooking problem in the cases of single-fare class and two-fare class. Five issues including the impact of oversale penalty, the establishment of booking limit, the relationship between pattern and seats allocation, the expected total revenue under stochastic demand, and the applicability of sophisticated continuous booking control strategy and one-time decision are specially addressed. The research has brought out the following results: 1.Both linear and non-linear oversale penalty cost functions have great impact on overbooking. The booking boundary computed from non-linear oversale penalty function is smaller than that from linear one when the oversale penalty cost parameters are set the same. 2.The optimal overbooking limit in the case of single fare has nothing to do with the booking demand. It only relates to passenger's show-up rate, oversale penalty cost, and the flight capacity. 3.In the case of two-fare, the booking limit for low fare is related to high fare booking demand probability function. When the other conditions remain unchanged, the higher the demand variance of high fare is, the higher low fare booking limit will be. 4.The new term "expected marginal booking revenue" is proposed. It equals to the expected marginal seat revenue only when cancellation and no-show are ignored. The expected marginal seat revenue is a non-increasing function of seats. 5.When booking demand distribution function is ignored (It implies that the booking request is always higher than the booking limit) and cancellation and no-shows are considered, the expected marginal seat revenue is a non-decreasing function of seats. However, if passengers' demand distribution function is incorporated, the expected marginal seat revenue initially will be a non-decreasing function then followed by a non-increasing function of seats. Since the booking request is not always large enough to fill up all the seats as capacity becomes large enough. 6.The continuous review process will not have significant impacts if passenger's booking pattern is not deviate far away from the one used in the control process which, in general, is generated from the historic flights' booking information. That is, the continuous review process will not be efficient unless we are very sure that information is sufficient enough to make adjustments and better decisions on booking control.