• Journal of Korean Institute of Industrial Engineers
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• v.35 no.3
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• pp.185-193
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• 2009

We consider a two-fare, two-period airline seat capacity allocation problem where consumers may choose different options in purchasing an airline ticket. A consumer may decide to wait for reopening of the same fare class ticket which is originally intended to buy, or may buy a different fare class ticket within the same period, if the originally requested fare is unavailable. We investigate the impact of the consumer buying behavior on the optimal solutions and the expected revenue.

• The Journal of the Korea Contents Association
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• v.7 no.5
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• pp.156-165
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• 2007

The concepts of static seat allocation model has been used widely in the air transportation industry, and proven as a good concepts for managing perishable assets. The paper analyzed, in realistic environment, the volume of Accept Demand and Reject Demand through several times' simulation experiments at each fare level by using C-Program analyzing process applied to upward and downward models of demand, to analyze the change of fare level when upward and downward shifts of fare levels' demand happen at once. As a consequence, I concluded that the revenue of the case to consider the both shifts of demand at each fare level is bigger than that of the case to consider the single shift of demand at each fare level, except the case to downsize the seat allotment at very low price when supply is bigger than demand, with developing a general model concerned with plural fare levels.

• Journal of Korean Society of Transportation
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• v.25 no.1 s.94
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• pp.37-47
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• 2007

The Integrated Public Transport Reforms of the Seoul Metropolitan Government, which were implemented on the $1^{st}$ of July. 2004, launched a new fare allocation method. However, when a Private transit operator or a new transport system is introduced into the existing system, it will cause an allocation problem. Therefore, this study aims to Propose a rational fare allocation method which can be applicable regardless of the number of Public transportation modes or operators. To create alternatives, this study has adopted a fundamental principle of revenue allocation methods for the transit or communications sectors, and has applied it to the current transit system of Seoul. This study kas analyzed results of the cost recovery ratios and characteristics of each alternative through case studies. This study kas Presented an assessment criterion Z in order to select an optimal alternative. The criterion consists of the sum of the cost recovery ratio of each operator and the difference of the cost recovery ratio for each agency in inter-agency transit. Using the assessment criterion. the results showed that Alternative 1 is superior to the others : Alternative 1 is considering passenger-km of each operator and unit cost of passenger-km for each operator.

• Transportation Technology and Policy
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• v.7 no.2
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• pp.107-110
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• 2010

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.22 no.2
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• pp.1-14
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• 2023

This study derives quantitative data on how much the fiscal deficit of subway operation agencies can be reduced in the process of charging free rides for the elderly in metropolitan subways during peak periods. In smart card data, every trip of elderly is recorded except fares. Therefore, it is required to establish a methodology for estimating the fares of elderly passengers and distributing them to subway opertation agencies as income. This study builds a simultaneous dynamic traffic allocation model that reflects the assumption that elderly selects a minimum time route based on the departure time. The travel route of the elderly is estimated, and the distance-proportional fare charged to the elderly is calculated based on this, and the fare is distributed by reflecting the connected railway revenue allocation principle of the metropolitan subway operating agencies. As a result of conducting a case study for before and after COVID-19 in 2019 and 2020, it is analyzed that Seoul Metro's annual free loss of 360 billion won could be reduced 6~8% at the morning peak (07:00-08:59), and 13~16% at the morning and afternoon peak (18:00-19:59).

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.22 no.2
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• pp.15-28
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• 2023

Boundary Station is an evaluation index that was not reflected in the Seoul Metropolitan Urban Railroad Connected Eare Allocation. Boundary station is a station located at the boundary point of two transportation agencies sharing the same route, and track operation methods are divided into business management and maintenance management. Until now, the Connected Fare Allocation has evaluated the boundary stations from the perspective of business management. Meanwhile, the integrated public transportation fee system requires the need to interpret the boundary stations from the point of view of maintenance management at the developmental level. This study was prepared a measure to quantitatively analyze changes in income with the introduction of maintenance methods in mind. The Change in the income of operation agency evaluated based on the daily transportation card data for the boundary stations of the four Seoul Transportation Corporation and KORAIL sections. This study is meaningful as a basic research for an analytical judgment that evaluates and allocates changes in transportation income of Seoul Metropolitan Urban Railroad in the future.

• Journal of the Korean Operations Research and Management Science Society
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• v.30 no.2
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• pp.41-61
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• 2005

The concept of revenue management (RM) has been used widely in the air-transportation industry, and proven as a good system for managing perishable assets. While the airlines are the oldest and most sophisticated users of RM, these practices have been an enormously important innovation in other service industries such as the travel, the railway, the internet and the manufacturing industries. In this paper, reviewing several studies on RM, we introduce the fundamental concepts and the major models of RM covering seat allocation with multiple fare classes and overbooking. Future research directions also are suggested.

• Korean Management Science Review
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• v.21 no.3
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• pp.71-84
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• 2004

CRS, which was initially developed to support airline reservation is now the main part of e-business of airlines, and it decides the degree of prompt and accurate itinerary for travelers due to the remarkable difference in availability inquiry and seats reservation information according to CRS joining level CRS joining level also decides the exactness of reservation, ticketing and traffic data collection and plays the most important role in the exactness of advanced forecast of demand, appropriate seats allocation, and overbooking. Therefore, it provides front end function like seats reservation, schedule display, fare inquiry on-line linked with CRS and back office function like sales result of travel agents, accounting administration. stock administration and customer administration and decides the level of an airline's e-business.

• 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.

• Journal of Korean Society of Transportation
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• v.23 no.5 s.83
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• pp.157-167
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• 2005

Seoul metropolitan public transport reform results in the introduction of the semi-public operation and distance-based fare policies. With implementation of these policies, public transport revenue allocation has been (will be) evolved very complicated because the existing revenue allocation issues have not only been clearly solved, which is generated by the combined relationship among Korea Railroad Corporation (KRC). Seoul Metropolitan Subway Corporation (SMSC). Seoul Metropolitan Rapid Transit Corporation (SMRTC), and Incheon Rapid Transit Corporation (IRTC), but also the revenue allocation problem between bus and urban railroad-related organizations need to be considered in this combined framework. On top of that. based on the future plans such as the private sector's railroad construction plan(s), the light rail transit construction plans of several local governments and the join of remained bus lines of Seoul metropolitan areas, it is understood that the revenue allocation among public transport operating organization will become one of main issues of operation organization as well as local and central governments. As a basic approach for revenue allocation of public transport operation organizations, the purpose of this paper is to propose an integrated model applicable to estimate degree of service contribution in passenger carriage in the combined public transport network. With a hypothesis that the complete electronic card system is deployed, this paper supposes every passenger's loading and alighting stations is recordable. Thereby, this paper limits research scope as to Seoul metropolitan railroad area since used route(s) between origin and destination stations can not be traceded because transfer stations each passenger path through is not recorded. Each model proposed in the paper is as follows: 1. a generalized cost reflecting passenger's transfer behavior; 2.a K path model for determining similar routes between O-D; 3.an assignment model for loading O-D trips onto the detected similar routes using Logit Model.