Authors: Catherine Cleophas, Michael Frank, Natalia Kliewer
Addresses: DS&OR Lab, Universitat Paderborn, Warburger Str. 100, Paderborn 33098, Germany. ' Deutsche Lufthansa AG, FRA ID/I-M, Lufthansa Aviation Center, Frankfurt am Main 60546, Germany. ' DS&OR Lab, Universitat Paderborn, Warburger Str. 100, Paderborn 33098, Germany
Abstract: Revenue management for airlines strives to maximise revenue as the sum of fares earned through customer bookings. Since the internet enables customers to make more informed choices and low-cost carriers introduced the concept of restriction-free fares, forecasting for airline revenue management has faced new challenges. In addition, advances in dynamic pricing allow for a more sophisticated approach to pricing, but also ask for more information on customer reactions. This paper summarises recent developments in demand forecasting with regard to the prediction of demand in the airline industry. A classification by demand arrival, level, detruncation and behaviour is applied.
Keywords: airline revenue management; demand models; demand forecasting; revenue management; simulation; airlines.
International Journal of Revenue Management, 2009 Vol.3 No.3, pp.252 - 269
Published online: 21 Jul 2009 *Full-text access for editors Access for subscribers Purchase this article Comment on this article