Seminer: Hans Frenk, “A static model in single leg flight airline revenue management”
A static model in single leg flight airline revenue management
Static models on single leg airline revenue management generally consider booking limits orprotection limits as the main decision variables to control reservation requests. In this talk, we provide an alternative framework in which the decision variables are the closing times of fare classes. In a continuous time model with nonhomogeneous Poisson arrivals, cancellations, and no-shows, we study the problem of finding optimal closing times to maximize the expected net revenue from a given flight. We analyze the value function, point out some easy cases, and discuss an easily implementable dynamic programming based solution method. If time permits we also illustrate this method on some numerical examples. This talk discussess joint work with S.O Sezer (Sabanci University) and Behrooz Pourghannad (University of Minnesota). Keywords: airline revenue management; multidimensional optimization; Poisson random measures.
Bio: Hans Frenk joined in 2009 the Faculty of Engineering and Natural Sciences at Sabanci university, Istanbul. He graduated from Utrecht University (master degree in mathematics) and obtained his Ph.D (1983) from Econometric Institute, Erasmus university, Rotterdam, within the field of renewal theory and regenerative processes. Through the years his main research interest is in the theory of stochastic processes and optimization (linear, nonlinear and dynamic programming). At the moment his research is applying those techniques to problems in Management Science and Engineering (inventory control, pricing and revenue management).