Integrated revenue management approaches for capacity control with planned upgrades

Many revenue management problems require making capacity control and pricing decisions for multiple products. The decisions for the different products interact because either the products use a common pool of resources or the customers choose and substitute among the products. When pricing airline tickets, for example, different itinerary products use the capacities on common flight legs and the customers choose and substitute among different itinerary products that serve the same origin-destination pair. Finding the optimal capacity control and pricing decisions in such problems can be challenging because one needs to simultaneously consider the capacities available to serve a large pool of products. In “An Approximation Algorithm for Network Revenue Management under Nonstationary Arrivals,” Ma, Rusmevichientong, Sumida, and Topaloglu develop efficient methods to make decisions with performance guarantees in high-dimensional capacity control and pricing problems.

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Revenue management for outpatient appointments: joint capacity control and overbooking with class-dependent no-shows

Flexible Services and Manufacturing Journal ◽

10.1007/s10696-011-9129-9 ◽

2011 ◽

Vol 24 (4) ◽

pp. 516-548 ◽

Cited By ~ 10

Author(s):

Aaron Ratcliffe ◽

Wendell Gilland ◽

Ann Marucheck

Keyword(s):

Revenue Management ◽

Capacity Control ◽

Outpatient Appointments

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Dynamic capacity control in cargo revenue management – A new heuristic for solving the single-leg problem efficiently

Journal of Revenue and Pricing Management ◽

10.1057/rpm.2012.28 ◽

2012 ◽

Vol 12 (1) ◽

pp. 46-59 ◽

Cited By ~ 7

Author(s):

Rainer Hoffmann

Keyword(s):

Revenue Management ◽

Capacity Control ◽

Dynamic Capacity

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Social Media and Revenue Management; Where Should the Two Meet?

Journal of Technology Management for Growing Economies ◽

10.15415/jtmge.2012.31002 ◽

2012 ◽

Vol 3 (1) ◽

pp. 33-46 ◽

Cited By ~ 8

Author(s):

Kate Varini ◽

Pavan Sirsi

Keyword(s):

Social Media ◽

Public Relations ◽

Revenue Management ◽

Customer Relationships ◽

Bottom Line ◽

The Public ◽

Management Approaches ◽

Travel Industry ◽

Media Channels ◽

Social Media Strategy

The objective of this study is to explore how social media strategies can be integrated with the function of revenue management. A survey was used to evaluate the extent to which some travel firms use/perceive social media. This study explores possible synergy between the time spent developing social media channels and the opportunities these might generate for travel firms active in the application of revenue management tactics. This has lead to the recommendation of new practices that could potentially enhance future revenue and profit. The present study identifies that travel firms can build opportunities to capture additional revenues by focusing on building engaging and useful content for customers. The travel industry is just beginning to embrace the need to combine public relations (PR) activities with new marketing approaches that must engage, rather that use interruption and coercion to generate sales. As engagement of the public with social media grows, it is evident that this will have implications for revenue management approaches, in the same way that approaches to PR and marketing have needed to evolve with the growth in online interaction between consumers. A shift in strategic outlook may enhance the ability of travel companies to sell valued products, improve customer relationships and increase their bottom-line; hence it becomes even more important for such organizations to ensure they have a solid social media strategy.

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