The role of robust optimization In single-leg airline revenue management

Ilker Birbil, J. B G Frenk, Joaquim A S Gromicho, Shuzhong Zhang

Research output: Contribution to journalArticlepeer-review

28 Scopus citations

Abstract

In this paper, we introduce robust versions of the classical static and dynamic single-leg seat allocation models. These robust models take into account the inaccurate estimates of the underlying probability distributions. As observed by simulation experiments, it turns out that for these robust versions the variability compared to their classical counterparts is considerably reduced with a negligible decrease in average revenue.

Original languageEnglish (US)
Pages (from-to)148-163
Number of pages16
JournalManagement Science
Volume55
Issue number1
DOIs
StatePublished - Jan 1 2009

Keywords

  • Airline revenue management
  • Dynamic models
  • Robust optimization
  • Single-leg problems
  • Static models

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