This study is focused on a bid price control problem for airlines seat control. Seat control is an important problem in revenue management which is to decide whether to accept or reject a booking request during the booking horizon in airlines. One of ...
This study is focused on a bid price control problem for airlines seat control. Seat control is an important problem in revenue management which is to decide whether to accept or reject a booking request during the booking horizon in airlines. One of effective seat control schemes is a bid price control. In this paper we suggest a quasi-bid price control method. To get the quasi bid price, we apply LAPX model with some modification of each demand. Our method will be applied to the real world problem with ease, because it is simple and very easy to calculate a bid price. Furthermore, ours can be extended to the further research including dynamic pricing & dynamic seat control models.