Abstract:

Aiming at the shortcomings of traditional algorithm for seat inventory control in airline revenue management,i.e.some unreasonable assumptions such as independent demand among cabins,no batch booking and no demand recapturing,a new seat inventory model is proposed based on market segmentation and careful study of passengers'choosing behavior. Taking into account the passengers'arrival distribution and passengers'choices,this model can effectively eliminate the unreasonable assumption. Market research data are used to calculate passenger arrival probability and passenger cabin choice probability. Finally,passengers'choosing behaviors are simulated by Logit model and EMSRb algorithm,simulating result proves the advantages of the current model comparing with conventional algorithms.

Key words: seat inventory control, EMSR, passenger's choosing behavior, revenue management