Tickets Sales Policy for Two-Stage Fares Airline Considering Unidirectional Substitution of Cabin and Swapping Applications

Abstract:

Tickets sales policy of two routes for two-stage fares airline are studied under the following three conditions in this paper: neither unidirectional substitution of cabin nor swapping applications is considered, only unidirectional substitution of cabin is considered, both unidirectional substitution of cabin and swapping applications are considered. We formulate the corresponding decision model and derive the optimal tickets amount and expected revenue. It shows that compared with the condition that neither unidirectional substitution of cabin nor swapping applications is considered, when only unidirectional substitution of cabin is considered, the expected optimal tickets amount and expected revenue increase; compared with the condition that only unidirectional substitution of cabin is considered, when both unidirectional substitution of cabin and swapping applications are considered, the expected optimal tickets amount and expected revenue increase.

• Periodical: Applied Mechanics and Materials (Volumes 380-384)
• Pages: 4541-4546
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.380-384.4541
• Online since: August 2013
• Authors: Feng Chao Wang, Zhen Xiu Mo, Cui Li
• Keywords: Revenue Management, Sales Policy, Swapping Applications, Unidirectional Substitution

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