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Operations Research, Systems Engineering and Industrial Engineering
International Journal of Aviation, Aeronautics, and Aerospace
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An Optimal Airline Revenue Management Seat Pricing Plan Model, Constantine M. Koursaris, James W. Marion Jr.
An Optimal Airline Revenue Management Seat Pricing Plan Model, Constantine M. Koursaris, James W. Marion Jr.
International Journal of Aviation, Aeronautics, and Aerospace
The goal of an airline is to sell tickets at the highest fare possible, thus yielding maximum profit for the stakeholders. As airline seat pricing is divided into different fare classes, a revenue management system is created and maintained to identify opportunity costs where the airline may sell an optimum number of available seats in both discounted fare and full fare classes. Ideally, under perfect conditions, the airline will sell all available seats at full capacity for each leg of a trip. Under non-ideal conditions for the airline, not all available seats may sell at either full fare or discounted …