Skip to main content

2021 | OriginalPaper | Buchkapitel

5. Low-Cost Carriers and Impacts on Revenue Management

verfasst von : Ben Vinod

Erschienen in: The Evolution of Yield Management in the Airline Industry

Verlag: Springer International Publishing

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

Low Cost Carriers (LCC) introduced unrestricted tariffs leading to the core assumption of independent booking classes being no longer true. This chapter begins with a discussion on value pricing followed with restriction free pricing and lightly restricted tariffs practiced by the LCCs and its impact on network carriers. Alternative models to address restriction free tariffs to set inventory controls are reviewed. Co-existence of inventory controls for regular restricted tariffs and unrestricted tariffs for network carriers are also discussed.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Literatur
Zurück zum Zitat Belobaba, P. P. (2008). The rise and fall of airline revenue management systems: How can OR help? In AGIFORS Symposium, Montreal, September. Belobaba, P. P. (2008). The rise and fall of airline revenue management systems: How can OR help? In AGIFORS Symposium, Montreal, September.
Zurück zum Zitat Belobaba, P. P., & Hopperstad, C. (2004). Algorithms for revenue management in unrestricted fare structures. INFORMS Revenue Management Section, Cambridge, MA. Belobaba, P. P., & Hopperstad, C. (2004). Algorithms for revenue management in unrestricted fare structures. INFORMS Revenue Management Section, Cambridge, MA.
Zurück zum Zitat Belobaba, P. P., & Weatherford, L. (1996). Comparing decision rules that incorporate customer diversion in perishable asset revenue management situations. Decision Sciences, 27(2), 343–363.CrossRef Belobaba, P. P., & Weatherford, L. (1996). Comparing decision rules that incorporate customer diversion in perishable asset revenue management situations. Decision Sciences, 27(2), 343–363.CrossRef
Zurück zum Zitat Boyd, E. A., & Kallesen, R. (2004). The science of revenue management when passengers purchase the lowest available fare. Journal of Revenue and Pricing Management, 3(2), 171–177.CrossRef Boyd, E. A., & Kallesen, R. (2004). The science of revenue management when passengers purchase the lowest available fare. Journal of Revenue and Pricing Management, 3(2), 171–177.CrossRef
Zurück zum Zitat Boyd, A., Kambour, E., & Tama, J. (2001). The impact of buy-down on unconstraining sell-up and spiral-down. In INFORMS Revenue Management Section Conference, Columbia University, New York. Boyd, A., Kambour, E., & Tama, J. (2001). The impact of buy-down on unconstraining sell-up and spiral-down. In INFORMS Revenue Management Section Conference, Columbia University, New York.
Zurück zum Zitat Castro, J., & Crandall, R. L. (1992). ROBERT CRANDALL: This industry is always in the grip of its dumbest competitors. Time, May 04 Castro, J., & Crandall, R. L. (1992). ROBERT CRANDALL: This industry is always in the grip of its dumbest competitors. Time, May 04
Zurück zum Zitat Chaneton, J. M., & Vulcano, G. (2011). Computing bid prices for revenue management under customer choice behavior. Manufacturing & Service Operations Management, 13(4), 452–470.CrossRef Chaneton, J. M., & Vulcano, G. (2011). Computing bid prices for revenue management under customer choice behavior. Manufacturing & Service Operations Management, 13(4), 452–470.CrossRef
Zurück zum Zitat Crandall, R. L. (1993). The airline in transition: Competitive challenges for the 1990s. Presented at The Society of Airline Analysts, September 14. Crandall, R. L. (1993). The airline in transition: Competitive challenges for the 1990s. Presented at The Society of Airline Analysts, September 14.
Zurück zum Zitat Dunleavy, H., & Westermann, D. (2005). Future of revenue management: Future of airline revenue management. Journal of Revenue Pricing Management, 3, 380–383.CrossRef Dunleavy, H., & Westermann, D. (2005). Future of revenue management: Future of airline revenue management. Journal of Revenue Pricing Management, 3, 380–383.CrossRef
Zurück zum Zitat Fiig, T., Isler, K., Hopperstad, C., & Belobaba, P. (2010). Optimization of mixed fare structures: Theory and applications. Journal of Revenue and Pricing Management, 9(1/2), 152–170.CrossRef Fiig, T., Isler, K., Hopperstad, C., & Belobaba, P. (2010). Optimization of mixed fare structures: Theory and applications. Journal of Revenue and Pricing Management, 9(1/2), 152–170.CrossRef
Zurück zum Zitat Fiig, T., Isler, K., Hopperstad, C., & Cleaz-Savoyen, R. (2005). Davn-mr: A unified theory of O&D optimization in a mixed network with restricted and unrestricted fare products. In AGIFORS Revenue Management and Distribution Study Group Meeting, Cape Town, South Africa. Fiig, T., Isler, K., Hopperstad, C., & Cleaz-Savoyen, R. (2005). Davn-mr: A unified theory of O&D optimization in a mixed network with restricted and unrestricted fare products. In AGIFORS Revenue Management and Distribution Study Group Meeting, Cape Town, South Africa.
Zurück zum Zitat Fiig, T., Isler, K., Hopperstad, C., & Olsen, S. S. (2012). Forecasting and optimization of fare families. Journal of Revenue and Pricing Management, 11(3), 322–342.CrossRef Fiig, T., Isler, K., Hopperstad, C., & Olsen, S. S. (2012). Forecasting and optimization of fare families. Journal of Revenue and Pricing Management, 11(3), 322–342.CrossRef
Zurück zum Zitat Gallego, G., Iyengar, G., Phillips, R., & Dubey, A. (2004). Managing flexible products on a network. Computational Optimization Research Center (CORC), Technical Report, TR-2004-01. Columbia University. Gallego, G., Iyengar, G., Phillips, R., & Dubey, A. (2004). Managing flexible products on a network. Computational Optimization Research Center (CORC), Technical Report, TR-2004-01. Columbia University.
Zurück zum Zitat Gallego, G., Li, L., & Ratliff, R. M. (2009). Choice-based EMSR methods for single leg revenue management with demand dependencies. Journal of Revenue and Pricing Management, 8(4), 207–240.CrossRef Gallego, G., Li, L., & Ratliff, R. M. (2009). Choice-based EMSR methods for single leg revenue management with demand dependencies. Journal of Revenue and Pricing Management, 8(4), 207–240.CrossRef
Zurück zum Zitat Gallego, G., Ratliff, R., & Shebalov, S. (2015). A general attraction model and sales-based linear program for network revenue management under customer choice. Operations Research, 63(1), 212–232.CrossRef Gallego, G., Ratliff, R., & Shebalov, S. (2015). A general attraction model and sales-based linear program for network revenue management under customer choice. Operations Research, 63(1), 212–232.CrossRef
Zurück zum Zitat Gorin, T., & Belobaba, P. (2004). Revenue management performance in a low fare airline environment: Insights from the passenger origin–destination simulator. Journal of Revenue and Pricing Management, 3(3), 215–236.CrossRef Gorin, T., & Belobaba, P. (2004). Revenue management performance in a low fare airline environment: Insights from the passenger origin–destination simulator. Journal of Revenue and Pricing Management, 3(3), 215–236.CrossRef
Zurück zum Zitat Hopperstad, C. (2004). Alternative RM algorithms for unrestricted fare structures. AGIFORS Reservations and Yield Management Study Group, Auckland. Hopperstad, C. (2004). Alternative RM algorithms for unrestricted fare structures. AGIFORS Reservations and Yield Management Study Group, Auckland.
Zurück zum Zitat Hopperstad, C., Zerbib, G., & Belobaba, P. (2006). Methods for estimating sell-up. AGIFORS Revenue Management and Distribution Study Group Meeting, Cancun, Mexico, May. Hopperstad, C., Zerbib, G., & Belobaba, P. (2006). Methods for estimating sell-up. AGIFORS Revenue Management and Distribution Study Group Meeting, Cancun, Mexico, May.
Zurück zum Zitat Ja, S., Rao, B. V., & Chandler, S. (2001). Passenger recapture estimation in airline RM. In AGIFORS 41st Annual Symposium, Sydney, August. Ja, S., Rao, B. V., & Chandler, S. (2001). Passenger recapture estimation in airline RM. In AGIFORS 41st Annual Symposium, Sydney, August.
Zurück zum Zitat Jones, K. (1993). Big victory for American airlines in fare suit. The New York Times, August 11. Jones, K. (1993). Big victory for American airlines in fare suit. The New York Times, August 11.
Zurück zum Zitat Liang, D., Ratliff, R. M., & Remenyi, N. (2017). Robust revenue opportunity modeling with quadratic programming. Journal of Revenue and Pricing Management, 16(3), 569–679.CrossRef Liang, D., Ratliff, R. M., & Remenyi, N. (2017). Robust revenue opportunity modeling with quadratic programming. Journal of Revenue and Pricing Management, 16(3), 569–679.CrossRef
Zurück zum Zitat Liu, Q., & van Ryzin, G. (2006). On the choice-based linear programming model for network revenue management. Manufacturing and Service Operations Management, 10(2), 288–310.CrossRef Liu, Q., & van Ryzin, G. (2006). On the choice-based linear programming model for network revenue management. Manufacturing and Service Operations Management, 10(2), 288–310.CrossRef
Zurück zum Zitat McCartney, S. (2004, January 7). When first class is cheaper than coach. The Wall Street Journal. McCartney, S. (2004, January 7). When first class is cheaper than coach. The Wall Street Journal.
Zurück zum Zitat McDonald, M. (2006, March). Yielding to the LCC’s. Air Transport World, 36–37. McDonald, M. (2006, March). Yielding to the LCC’s. Air Transport World, 36–37.
Zurück zum Zitat McDowell, E. (1992, April 10). American air cuts most fares in simplification of rate system. New York Times. McDowell, E. (1992, April 10). American air cuts most fares in simplification of rate system. New York Times.
Zurück zum Zitat McGill, J. I. (1995). Censored regression analysis of multiclass passenger demand data subject to joint capacity constraints. Annals of Operations Research, 60, 209–240.CrossRef McGill, J. I. (1995). Censored regression analysis of multiclass passenger demand data subject to joint capacity constraints. Annals of Operations Research, 60, 209–240.CrossRef
Zurück zum Zitat McGill, J. I., & van Ryzin, G. J. (1999). Revenue management: Research overview and prospects. Transportation Science, 33, 233–256.CrossRef McGill, J. I., & van Ryzin, G. J. (1999). Revenue management: Research overview and prospects. Transportation Science, 33, 233–256.CrossRef
Zurück zum Zitat Michael, S. C., & Silk, A. J. (1994, May 11). American airlines value pricing. Harvard Business School. Michael, S. C., & Silk, A. J. (1994, May 11). American airlines value pricing. Harvard Business School.
Zurück zum Zitat Mishra, S., & Viswanathan, V. (2003). Revenue management with restriction free pricing. AGIFORS Reservations and Yield Management Study Group, Honolulu, June. Mishra, S., & Viswanathan, V. (2003). Revenue management with restriction free pricing. AGIFORS Reservations and Yield Management Study Group, Honolulu, June.
Zurück zum Zitat Parker, R. (2004). Evaluating schedules with the network value index. In AGIFORS Annual Symposium, Singapore, September. Parker, R. (2004). Evaluating schedules with the network value index. In AGIFORS Annual Symposium, Singapore, September.
Zurück zum Zitat Ratliff, R. M., Manjot, J., & Guntreddy, B. R. (2013). Applied O&D revenue opportunity model for dependent demands. AGIFORS Revenue Management Study Group, May, Miami. Ratliff, R. M., Manjot, J., & Guntreddy, B. R. (2013). Applied O&D revenue opportunity model for dependent demands. AGIFORS Revenue Management Study Group, May, Miami.
Zurück zum Zitat Ratliff, R., Rao, B. V., Narayan, C. P., & Yellepeddi, K. (2008). A multi-flight recapture heuristic for estimating unconstrained demand from airline bookings. Journal of Revenue and Pricing Management, 9(4), 326–340. Ratliff, R., Rao, B. V., Narayan, C. P., & Yellepeddi, K. (2008). A multi-flight recapture heuristic for estimating unconstrained demand from airline bookings. Journal of Revenue and Pricing Management, 9(4), 326–340.
Zurück zum Zitat Ratliff, R., & Vinod, B. (2005). Airline pricing and revenue management: A future outlook. Journal of Revenue and Pricing Management, 4(3), 302–307.CrossRef Ratliff, R., & Vinod, B. (2005). Airline pricing and revenue management: A future outlook. Journal of Revenue and Pricing Management, 4(3), 302–307.CrossRef
Zurück zum Zitat Ratliff, R., & Weatherford, L. (2009). A review of RM methods for dependent demands. AGIFORS Cargo and Revenue Management Study Group. Amsterdam. Ratliff, R., & Weatherford, L. (2009). A review of RM methods for dependent demands. AGIFORS Cargo and Revenue Management Study Group. Amsterdam.
Zurück zum Zitat Stefanescu, C., deMiguel, V., Fridgeirsdottir, R., & Zenios, S. (2004). Revenue management with correlated demand forecasting. Working Paper, London Business School, 6 Sussex Place, Regent’s Park, London. Stefanescu, C., deMiguel, V., Fridgeirsdottir, R., & Zenios, S. (2004). Revenue management with correlated demand forecasting. Working Paper, London Business School, 6 Sussex Place, Regent’s Park, London.
Zurück zum Zitat Talluri, K. T., & van Ryzin, G. J. (2004). The theory and practice of revenue management. Dordrecht, MA: Kluwer Academic.CrossRef Talluri, K. T., & van Ryzin, G. J. (2004). The theory and practice of revenue management. Dordrecht, MA: Kluwer Academic.CrossRef
Zurück zum Zitat Vinod, B. (2005c). Fare’ly simple. Ascend, 2, 19–21. Vinod, B. (2005c). Fare’ly simple. Ascend, 2, 19–21.
Zurück zum Zitat Vinod, B. (2008). The continuing evolution: Customer centric revenue management. Journal of Revenue and Pricing Management, 7(1), 27–39.CrossRef Vinod, B. (2008). The continuing evolution: Customer centric revenue management. Journal of Revenue and Pricing Management, 7(1), 27–39.CrossRef
Zurück zum Zitat Vulcano, G., van Ryzin, G., & Chaar, W. (2010). Choice-based revenue management: An empirical study of estimation and optimization. Manufacturing and Service Operations Management, 12(3), 371–392.CrossRef Vulcano, G., van Ryzin, G., & Chaar, W. (2010). Choice-based revenue management: An empirical study of estimation and optimization. Manufacturing and Service Operations Management, 12(3), 371–392.CrossRef
Zurück zum Zitat Vulcano, G., van Ryzin, G., & Ratliff, R. (2012). Estimating primary demand for substitutable products from sales transaction data. Operations Research, 60(2), 313–334.CrossRef Vulcano, G., van Ryzin, G., & Ratliff, R. (2012). Estimating primary demand for substitutable products from sales transaction data. Operations Research, 60(2), 313–334.CrossRef
Zurück zum Zitat Weatherford, L. R., & Ratliff, R. M. (2010). Review of revenue management methods with dependent demands. Journal of Revenue and Pricing Management, 9(4), 326–340.CrossRef Weatherford, L. R., & Ratliff, R. M. (2010). Review of revenue management methods with dependent demands. Journal of Revenue and Pricing Management, 9(4), 326–340.CrossRef
Zurück zum Zitat Zeni, R. H. (2007). Can we really look to the past to forecast future demand? Journal of Revenue and Pricing Management, 6(4), 312–314.CrossRef Zeni, R. H. (2007). Can we really look to the past to forecast future demand? Journal of Revenue and Pricing Management, 6(4), 312–314.CrossRef
Metadaten
Titel
Low-Cost Carriers and Impacts on Revenue Management
verfasst von
Ben Vinod
Copyright-Jahr
2021
Verlag
Springer International Publishing
DOI
https://doi.org/10.1007/978-3-030-70424-7_5