Skip to main content
SpringerLink
Log in
Book cover

Risk-Averse Capacity Control in Revenue Management

  • Book
  • © 2007

Overview

Authors:
  1. Christiane Barz

    1. Fakultät für Wirtschaftswissenschaften, Universität Karlsruhe (TH), Karlsruhe, Germany

    View author publications

    You can also search for this author in PubMed   Google Scholar

Part of the book series: Lecture Notes in Economics and Mathematical Systems (LNE, volume 597)

This is a preview of subscription content, log in via an institution to check access.

Access this book

Log in via an institution
eBook USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Other ways to access

Licence this eBook for your library

Institutional subscriptions

Table of contents (9 chapters)

  1. Front Matter

    Pages I-XIII
    Download chapter PDF

  2. Introduction

    1. Introduction

      Pages 1-13

  4. Expected Revenue Maximizing Capacity Control

    1. Front Matter

      Pages 43-45
      Download chapter PDF

    2. Capacity Control in a Random Environment

      Pages 47-62

    3. Basic Single Resource Capacity Control Models in Revenue Management

      Pages 63-78

  6. Back Matter

    Pages 143-163
    Download chapter PDF
Back to top

Keywords

About this book

“If necessity is the mother of invention, then deregulation is the father, and r- enue management (also known as yield management) is the couple’s golden child – at least as far as operations research is concerned.” (Horner, 2000, p. 47) Deregulation had a signi?cant impact on the U.S. airline industry in the late 1970s. Charter and low-cost airlines such as People Express and Southwest wereabletoo?erseatsatafractionofthepricechargedbyestablishedcarriers like Pan Am and American Airlines. Due to their di?erent cost structure, it seemed to be impossible for the big carriers to o?er tickets at the same low price. Yet they had to ?nd a way to compete. Robert L. Crandall from American Airlines is widely credited with the - lution to the problem:yield management – today calledrevenue management, since it maximizes revenue earned on a ?ight rather than yield (revenue per passenger mile). The idea was simple: American Airlines ?ights were only half full on - erage. O?ering the empty seats at a discount price would not only enable the carriers to compete with the low-cost airlines but even create additional r- enue, if (1) it were possible to prevent cannibalization, i.e. the sale of discount tickets to consumers who would otherwise be willing to pay full fare, and if (2) it could be assured that only the seats that would otherwise ?y empty were sold at the low price.

Authors and Affiliations

  • Fakultät für Wirtschaftswissenschaften, Universität Karlsruhe (TH), Karlsruhe, Germany

    Christiane Barz

Bibliographic Information

Publish with us

Policies and ethics

Back to top

Search

Navigation