Colloquium: Luis Gambetta (C&O)
18 augustus 2022 08:45 - Locatie: Lecture Room F, FACULTY OF AEROSPACE ENGINEERING, KLUYVERWEG 1, DELFT | Zet in mijn agenda
Dynamic Capacity Allocation for Optimal Revenue Management: A ULCC Case Study
When this does not go to plan, seats can remain unsold or late high-yielding customers may be turned away which translates into a loss of revenue for the airline. This thesis looks to build upon limited existing research that has been done in the area of dynamically allocating capacity amongst the number of flights that are currently out for sale by an airline. By taking advantage of flexible aircraft types, inventory can be optimized amongst different specific flights before they even depart. Pairing this with a revenue management model, inventory can be further optimized and revenue can be maximized by ensuring that each flight has the optimal amount of seats available and that each fare class has the right amount of inventory to optimize for the passenger type that is searching for that flight. By incorporating real-world data, a factor of realism can be incorporated into the results. Pairing this with a Monte Carlo simulation, will further help highlight the accuracy of the generated results. This was ultimately combined with a Random Forest model to help ensure informed decision making amongst the set of flights that were considered for swapping. In the final analysis we were able to see that the methodology created was able to generate an increase in the amount of revenue generated, the amount of passengers transported, and the average load factor per flight compared to a baseline scenario that swapped zero flights. With an increase of 1% we see that even though the gains were small, these increases were consistent and were able to convert to meaningful increases across an entire route network.