One of the main problems of revenue management is to allocate a fixed capacity of different types of classes of customers so that the total profit is maximized. On the example of the flight journey from Toronto to Vancouver, the problem of revenue management is to decide in each period, how much understood, the demand to take and how much reserve for the last class in order to maximize revenue. The essence of the problem revolves around the trade-off between damage and dilution. The author uses a variety of mathematical formulas (including a static model, the two-class model of Littlewood and p-Class model the expected marginal revenue seat) to simulate the optimal seat allocation results. "Hide
7 pages. Publication Date: December 11, 2009. Prod. #: 909E26-PDF-ENG
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