• Journal of Distribution Science
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• v.21 no.5
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• pp.93-102
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• 2023

Purpose: This study aims to investigate a meaningful connection between the service supply chain and the power to influence potential customers for airline booking. This investigation will cover various topics, including customer service, product quality, and marketing strategies. Additionally, the literature review will examine the various strategies and tactics airlines use to influence customer behavior. Research design, data, and methodology: The data collection process conducted by the author could obtain the justification and establish the quality of the instrument between independent factor (Service Supply Chain) and dependent factor (Power to Influence Potential Customers), selecting peer-reviewed articles mostly for the current study. Results: The findings section thoroughly studied the research findings indicating a potential link between service supply chain management and the ability to persuade potential consumers to book an airline. The research findings will be explored concerning the numerous variables that may affect customers' decision-making in the airline business, the techniques used by airlines to sway consumers. Conclusions: The research has provided evidence that airlines use a variety of strategies to influence potential customers and that these strategies are generally successful in increasing customer loyalty and satisfaction, as well as sales. By utilizing these strategies, airlines can increase their customer base and profitability.

• Korean Management Science Review
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• v.27 no.2
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• pp.67-79
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• 2010

When airlines sell the same seats on an air flight at different fares, demand for a fare class depends on demand for other fare classes due to demand dependency. Demand dependencies occur when customers will buy other fare class tickets if the originally requested fare were unavailable, or when customers postpone their purchase decisions in anticipation of reopening of the lower fare in the next period. Demand dependency as a result customer buying behavior has a considerable profit implication, which was ignored in many earlier studies. We investigate the impact of demand dependency on the optimal booking limits and the expected revenues under a single-period and a two-period setting. We show how to find optimal booking limits of the problem and provide numerical examples to illustrate the impact.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.535-538
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• 2006

We consider a two-period airline revenue management problem where customers may act strategically. Specifically, we study a two-fare-class airline seat inventory allocation problem which allow for the possibility that a customer may decide to defer to purchase in the hope that a cheaper ticket than those currently on offer (expensive tickets) become available. We also allow for the possibility that some customer will buy a more expensive ticket if the cheaper tickets are not available. We show how to find the optimal booking limits in the presence of such strategic customer behavior and investigate the impact of such strategic customer behavior on the expected revenue. The results are compared with those by the expected marginal seat revenue (EMSR) heuristic approach (Belobaba, 1987, 1989) with strategic customer behavior.

• The Korean Journal of Air & Space Law and Policy
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• v.27 no.2
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• pp.143-166
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• 2012

This paper deals in depth with airline over-booking practices and legal questions therefrom in the light of public interests. Chapter I as an introduction gives clear ideas of what are the over-booking, fact-revealing current state of denied boarding and nature of the problems inherent but veiled in those practices. In Chapter II, it is reviewed whether legal instruments for DBC(Denied Boarding Compensation) are adequately equipped for airline passengers in R. O. K. Upon the results of the review that international law to which Korea is a party, domestic law and administrative preparedness for the DBC are either null or virtually ineffective, the Chapter by contrast illustrates how well the U. S. and the E. U. safeguard civil rights of their passengers from such an 'institutionalized fraud' as the over-booking. In Chapter III on which a main emphasis lies, it is examined whether the over-booking practice constitutes a criminal offense: Fraud. In section 1, the author identifies actus reus and mens rea required for fraud then compares those with every aspect of the over-booking. In conjunction with the structural element analysis, he reviews the Supreme Court's precedents that lead the section into a partial conclusion that the act of over-booking judicially constitutes a crime of fraud. Despite the fulfillment of drawing up an intended answer, the author furthers the topic in section 2 by arguing a dominant view from Korean academia taking opposite stance to the Supreme Court. The commentators assert, "To consummate a crime of fraud, there must be property damage of the victim." For this notion correlates with a debate on legally protected interest in criminalization of fraud, the section 2 shows an argument over 'Rechtgut' matters specific to fraud. The view claims that the Rechtgut comes down rather to 'right to property' than 'transactional integrity' or 'fair and equitable principles'. However, the section concludes that the later values shall be deemed as 'freedom in economic decision-making' which are the benefit and protection of the penal law about fraud. Section 3 demonstrates the self-contradiction of the view as it is proved by a conceptual analysis that the infringement on freedom in economic decision-making boils down to the 'property damage'. Such a notion is better grounded in section 4 by foreign court decisions and legislation in its favour. Therefore, this paper concludes that the airline's act of over-booking is very likely to constitute fraud in both theory and practice.

• Korean Management Science Review
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• v.30 no.1
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• pp.1-14
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• 2013

We conduct the future studies suggested by Park and Seo [3]. They considered a seat inventory control problem in which flights depart sequentially during a similar time-interval and passengers purchase available seats depending on individual customer choice behavior. Customer choice behavior can lead to one among a horizontal shift, a diversion-up, and a booking loss when a desired fare class is unavailable. We investigate how seat availability calculation method, booking limit control mechanism, seat inventory capacity, number of booking class, type of seat demand influence on revenues in an airline industry through thorough computer simulation experiments.

• Korean Management Science Review
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• v.29 no.2
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• pp.91-103
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• 2012

Revenue management problems originated in the 1970's in the context of the airline industry have been successfully introduced in airline industries. It has started on the capacity control by booking classes for available seats, and has been recognized as a powerful tool to maximize the total revenue. Changing customer behavior and airline market environments, however, has required a new mechanism for improving the revenue. Dynamic pricing is one of innovative tools which is to adjust prices according to the market status. In this paper, we consider a dynamic pricing and seat control problem for discrete time horizon. The problem can be modeled as a stochastic programming problem. Applying the linear approximation technique and given the price set for each time, we suggest a mixed Integer Programming model to solve our problem efficiently. From the simulation results, we can find our model makes good performance and can be expanded to other comprehensive problems.

• Journal of Digital Convergence
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• v.15 no.6
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• pp.189-196
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• 2017

This study investigates customer satisfaction with full service carriers (FSC) and low cost carriers (LCC) using social media sentiment evaluation. From 2008 to 2016, a total of 77,591 tweets about two FSC and six LCC were aggregated and classified as per airline choice factors. Sentiment evaluation was employed to assess customer satisfaction by three appraisers. The results showed that customer satisfaction with LCC was significantly higher (p<0.001) compared to FSC. Furthermore, overall customer satisfaction with both FSC and LCC has been facing a consistent downward trend since the last seven years. The results also highlighted low customer satisfaction with respect to booking and flight operation factors, and a steep decline in customer satisfaction across booking, onboard services, and marketing factors for FSC. The results of this study have practical implications for the airline industry, which can use this quantitative data to improve customer satisfaction with FSC and LCC.

• International Journal of Computer Science & Network Security
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• v.24 no.7
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• pp.177-185
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• 2024

Web science, a general discipline of learning is presently at high demand of expertise with ideas to develop software-based WebApps and MobileApps to facilitate user or customer demand e.g. shopping etc. electronically with the access at their smartphones benefitting the business enterprise as well. A worldwide-computerized reservation network is used as a single point of access for reserving airline seats, hotel rooms, rental cars, and other travel related items directly or via web-based travel agents or via online reservation sites with the advent of social-web, e-commerce, e-business, from anywhere-on-earth (AoE). This results in the accumulation of large and diverse distributed databases known as big data. This paper describes a novel intelligent web-based electronic booking framework for e-business with distributed computing and data mining support with the detail of e-business system flow for e-Booking application architecture design using the approaches for distributed computing and data mining tools support. Further, the importance of business intelligence and data analytics with issues and challenges are also discussed.

• The Korean Journal of Air & Space Law and Policy
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• v.35 no.2
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• pp.113-136
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• 2020

Worldwide, so-called 'over-booking' of Air Carriers is established in practice. Although not invalid, despite their current contracts, passengers can be refused boarding, which can hinder travel planning. The Korean Supreme Court ruled that an airline carrier who refused to board a passenger due to over-booking was liable for compensation under the "Nonperformance of obligation". But what the court should be thinking about is when the benefit(transport) have been disabled. Thereforeit may be considered that the impossibility of benefit (Transport) due to the rejection of boarding caused by 'Over-booking' may be not the 'subsequent impossibility', but not the 'initialimpossibility '. The legal relationship due to initial impossibility is nullity (imposibilium nulla est obligation). When benefits are initial impossibile, our civil code recognizes liability for damages in accordance with the law of "Culpa in Contrahendo", not "nonperformance of obligation". On this reason, the conclusion that the consumer will be compensated for the loss of boarding due to overbooking by the Air Carrier is the same, but there is a need to review the legal basis for the responsibility from the other side. However, it doesn't matter whether it is non-performance or Culpa in Contrahendo. Rather, the recognition of this compensation is likely to cause confusion due to unstable contractual relationships between both parties. Even for practices permitted by Air Carriers, modifications to current customary overbooking that consumers must accept unconditionally are necessary. At the same time, if Air Carriers continue to be held liable for non-performance of obligations due to overselling tickets, it can be fatal to the airline business environment that requires overbooking for stable profit margins. Therefore, it would be an appropriate measure for both Air Carriers and passengers if the Air Carrier were to be given a clearer obligation to explain (to the consumer) and, at the same time, if the explanation obligation is fulfilled, the Air Carrier would no longer be forced to take responsibility for overbooking.

• The Journal of the Korea Contents Association
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• v.9 no.6
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• pp.357-369
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• 2009

With the development and generalization of internet and information technology, airlines has tried to reduce their business expenses and commissions to travel agencies and enhance service qualities through service automation and simplification, such as internet booking and ticketing, self check-in, in-flight internet and RFID for checked baggage. The statistical techniques conducted for this empirical analysis are frequency analysis, reliability analysis, factor analysis, confirmatory factor analysis and multiple regression analysis. This research has tried to examine factors of airline e-services that influence on recommendation re-purchase intention and satisfaction. Results has found that only on-line reservation and ticketing factor had significant effect for recommendation and re-purchase intention and all e-service factors produced significant effect to total satisfaction. It was also recommend that airlines have to provide easy and more familiar e-service system to their passengers to deliver better services.