Revenue Management is a sub category of transportation management. Revenue management in case of airlines is the process of understanding the consumer behaviour and anticipating external weather effects to maximize the revenue from fixed resources (fixed number of seats). All airlines make their revenue based on the demand. If unsold seats are present in the airplane, they cannot generate any revenue. Instead of operating the airplane with unsold seats, the management can offer discounts at the right time in order to generate maximum possible revenue even from unsold seats.
Revenue Management involves strategic control of inventory to sell it to the right customer at the right time for the right price. This process can result in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so .
Over the last decades, much interest has been devoted to the overbooking and capacity allocation issues and, today, most major airlines rely on computerized tools to deal with these two sub-problems. Pricing, however, has received less attention, which can be explained by the technical and theoretical difficulties inherent to the implementation.
In this research study, optimization is cried out by using back propagation neural networks coupled with auto regression model. This artificial neural network is trained based on the past data available from airlines. Upon successful training of the neural net, it is tested for the accuracy using the current data. Before applying neural network, Analytic Hierarchy Process (AHP) is used to rank-order airlines bared a certain criteria. Neural network based optimization is then carried out against the top-ranked airline given by AHP.
|Advisor:||Shaikh, Muzaffar A.|
|School:||Florida Institute of Technology|
|School Location:||United States -- Florida|
|Source:||DAI-B 73/08(E), Dissertation Abstracts International|
|Subjects:||Applied Mathematics, Operations research|
|Keywords:||Airline revenue, Airline ticket booking, Neural networks, Revenue management system|
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