Authors: Francesca Guerriero, Filomena Olivito
Addresses: Department of Electronics, Computer Science and System, University of Calabria, 87036 Rende (CS), Italy. ' Department of Electronics, Computer Science and System, University of Calabria, 87036 Rende (CS), Italy
Abstract: We address the problem of a car rental agency that is confronted with how to decide to accept or reject a booking request to optimise the revenue. An innovative integer programming model is devised, which incorporates particularities of the car rental business, like multi-day rents and non-cascading upgrades. To capture the randomness of the demand, robustness measures and the related scenario-based formulations are presented. An extensive computational study is carried out, by considering a set of randomly generated instances. The collected computational results show the relation between problem size and computation time and the effect of risk-aversion on revenue.
Keywords: revenue management; car rental revenue; integer linear programming; robust optimisation; risk aversion; modelling; car rental agencies; multi-day rents; non-cascading upgrades.
International Journal of Mathematics in Operational Research, 2011 Vol.3 No.2, pp.198 - 218
Available online: 06 Mar 2011Full-text access for editors Access for subscribers Purchase this article Comment on this article