Stochastic Dynamic Programming (SDP) is an optimization methodology that considers the variability of the system. SDP is studied broadly and applied to various systems, from manufacturing to transportation. For them to work correctly, the SDP models …
Offering promotions has become common practice in the airline industry as a strategy to boost the total revenue. An effective promotion campaign should be adequately priced and timed to attract sufficient extra demand and compensate for the markdown …
Promotions help increment the demand for a flight. Several decisions have to be made to offer a promotion such as its price and duration. We propose a method to estimate the behavior of customer inter-arrival time distribution, his buying probability …
In the airline industry, deciding the ticket price for each flight directly affects the number of people that in the future will try to buy a ticket. Depending on the willingness-to-pay of the customers the flight might take off with empty seats or …