ABSTRACT
The goal of Revenue Management (RM) is to maximize air carrier's profit by controlling pricing and the availability of seats. The main objective of the RM system is to guarantee seat availability for the high-revenue passengers. Predicting whether there is a business traveler interested in buying the full-fare seat is a major step in the RM process. For any flight in the point-to-point network structure, the objective of the RM system is to allocate the seats of the flight among different groups of travelers that travel between the origin and destination of the flight. The point-to-point network structure is when an air carrier focuses on severing local traffic between city-pairs, and less attention is given to the connecting traffic to the beyond destinations. The hub-and-spoke network structure is where every flight serves both local travelers between the origin and the destination of the flight, and connecting passengers to and from other destinations.
