Airline capacity allocation and overbooking problem with no-shows and denied service

• Main Authors: Chou, Shih-Feng, 周仕峰
• Other Authors: 許錫美
• Format: Others
• Language: en_US
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/hh5yk4

碩士 === 國立交通大學 === 工業工程與管理系所 === 102 === In this study, we investigate two kinds of problem: (P1) a capacity allocation problem considering the space ratio between class 1 seat space and class 2 seat space, and uncertain demand with fixed total capacity to allocate the fixed capacity between two classes for maximizing the total expected revenue; (P2) the overbooking problems considering the customer behavior “no-shows” and uncertain demand with fixed total capacity to decide the booking level for each class for maximizing the total expected revenue. In P1 problem, we propose an optimal capacity allocation rule with decision tree approach and develop the procedure to find the optimal seat numbers for each class. In P2 problem, we derive the optimal overbooking rule with decision tree approach for only consider a single class. Then we extend the proposed approach to two fare classes. We develop solution procedures to find the optimal booking level for single class and two fare classes overbooking problem for maximizing expected total revenue respectively.