Seat Inventory Control for Flight-based Revenue Management Systems
Flight-based RM systems are typically used by air carriers that adopt a point-topoint network structure. As mentioned earlier, 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. Thus, most passengers on the flight are traveling from the origin to the destination of the flight. The seats on each flight are classified to different booking (fare) classes that reflect the needs and characteristics of travelers that are related to their willingness to pay, a Saturday-stay, an advance purchase, the refund policy, and so on. For any flight in the point-to-point network structure, the objective of the seat inventory control is to determine the number of seats to be allocated for each booking class considered for the flight. This chapter presents the mechanism of the seat inventory control for flight-based RM systems. A simplified case of two fare classes is explained. Then, a more comprehensive case with multiple fare classes is presented.