• 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 KSR Conference
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• 2005.05a
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• pp.1064-1072
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• 2005

Since July 1st of 2004, a transit fare system of Seoul metropolitan area has been changed. The distinguished characteristics of the system can be described as two issues that can be summarized by distance based fare for Seoul metropolitan area and fare discount between bus and transit in Seoul city area. In Seoul city area, some existing subway users, however, complained the raised fare compared to previous fare system. An alternative, season ticket was introduced by Seoul local government in July 15th of 2004. Due to the ticket, even though periodic subway users could reduce average subway costs, the benefit of the season ticket was very limited to subway users in Seoul city area. Therefore, this study proposes a methodology to enlarge the benefit of the existing season ticket in Seoul metropolitan area.

• Proceedings of the KSR Conference
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• 2010.06a
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• pp.397-407
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• 2010

The Railroad that is representative transportation of Low Coal and Green Growth is industry that meet and serve unspecificness many customer unexpensive price as industry doing against as social overhead capital. Present our country railroad achievement is real condition that is not coming out in eternal in the red management. Accordingly, In this research, analyze success factor of management black-ink balance of railroad advanced nation such as Japan, France and Compare with our country and grasps problem of present city railroad fare system. Finally, alleviate fare burden of customer through diversification of fare system service such as establishing point uniformly for railroad fare that introduce first in Japan JR Kyushu railroad and propose the improvement of management of railway operation organization through demand enlargement.

• Proceedings of the KSR Conference
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• 2007.11a
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• pp.758-762
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• 2007

Revenue management is a new approach method to solve the problem of supply and demand, and one of fields which is diffused quickly at the service enterprise to use perishable-asset like the transportation business. It is based on multiple fare policy that discount charge reservation should be received if the benefit value of current discount fare is more than expected profit of the normal fare reservation it will be able to occur in future when suitable goods is sold to the customers at discount fare, at the time they want, and at assigned seat by controlling supply and demand from market. In this research, I will review on initial operation case for special class goods that the seat which is limited is assigned at some of train and portion of KTX for demand dispersion and new demand creation at peak time, put a limit in purchase conditions, and provides discounted fare. I will also try to find implication for strategic operation.

• Korean System Dynamics Review
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• v.10 no.1
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• pp.61-76
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• 2009

We try to use system dynamics to forecast the demand/supply and price, also transportation fare for iron ore. Iron ore is very important mineral resource for industrial production. The structure for this system dynamics shows non-linear pattern and we anticipated the system dynamic method will catch this non-linear reality better than the regression analysis. Our model is calibrated and tested for the past 6 year monthly data (2003-2008) and used for next 6 year monthly data(2008-2013) forecasting. The test results show that our system dynamics approach fits the real data with higher accuracy than the regression one. And we have run the simulations for scenarios made by possible future changes in demand or supply and fare related variables. This simulations imply some meaningful price and fare change patterns.

• Proceedings of the KSR Conference
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• 2001.05a
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• pp.97-102
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• 2001

If the Seoul-Pusan high-speed rail project is able to open its revenue service in 2004, Korea will be the fifth country with an HSR system in the world. And, it will be recorded as a major milestone in the transportation history of Korea. But, Government regulated railroad fare because railroad fare increase can bring negative influences to CPI(Consumer Price Index). Consequently, Korea National Railroad cannot afford to operate railroad independently under current railroad fare system. In this paper, we studied the railroad fare system under implementation and its influences to CPI. And then we proposed that railroad fare must be decided by competition with other transportation modes and based on the demand variance by introducing YMS(Yield Management System).

• Proceedings of the KSR Conference
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• 2007.05a
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• pp.1221-1226
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• 2007

The subway with the initial constructive expense which is enormous together is the public transportation means where the many expense is expended in the operation and maintenance civil official. Seoul Metro until initial opening to traffic after present time cannot escape every year deficit to be, the cause is a possibility of seeking from the fare system which is short in transportation prime cost. Currently Seoul Metro is operating with the distance proportional fare system the passenger ticket system which is simple (usual volume, group volume and fixed amount volume, affection renunciation, charge free volume). When the biased characteristic of the user it plans considering from the goods development side for the variety for and a deficit solution, against the fare system systematic it researches and solution plan politically. Financial of the subway operation agency young the investigation against the present condition of the hazard subway fare system which is solved the bud with problem point a fare system from the research which it sees consequently and improvement program under analyzing the man with underdeveloped genital organ. Base on the reporter to analyze the introduction plan which with the character which will reach it follows with the necessity of introduction of the 1st passenger ticket (24 hour volume).

• Proceedings of the KSR Conference
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• 2003.10b
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• pp.365-371
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• 2003

In this study, market strategies for the HSR's fare system are suggested for successful operation of high speed train opened in April 2004. For price strategies, we suggested HSR's fare system considered competition with other transportation modals are supposed to be charged and some discount-fare policies compared to service distances are needed for the successful operation of high speed train after the train open. In addition, this study concludes that for non-price strategies, various services for customers driving for enough demand can provide the base for stable operation of high speed train in Korea by making balances or profitability.

• Proceedings of the KSR Conference
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• 2001.10a
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• pp.91-96
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• 2001

Diminishing fare rate to distance is widely applied in transportation field including bus, but the decision method of diminishing rate is not established. The basic concept of diminishing fare rate to distance is that passengers have a benefit according to their travel distance. Furthermore, this can be justified in the standpoint of operator because the cost of long-distance traveller is lower than that of short-distance traveller to make same income. It is essential to introduce diminishing fare rate to distance to decide diminishing rate. We suggested methodologies regarding how to decide diminishing rate on the basis of operator costs.

• Proceedings of the KIEE Conference
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• 2001.04a
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• pp.423-425
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• 2001

In this paper, RF-ID system is used in gateless fare collection for the subway system. This enables passengers to go in and out of stations without any actions specifically for fare collection, such as carrying out from the purse at the gate, throwing tickets into gate machines or moving RF-ID cards near to the card readers. Card check zone system might extract fare from two or more cards that one person carries.