• Korean Management Science Review
• /
• v.25 no.1
• /
• pp.93-106
• /
• 2008

This study is focused on the problem of seat allocation for group travel demand in airlines. We first explain the characteristic of group demand and its seat allocation process. The group demand in air travel markets can be classified into two types : incentive and package groups. Allocating seats for group demand depends on the types of group demand and the relationship between airlines and travel agents. In this paper we concentrate on the package group demand and develop an optimization model for seat allocation on the demand to maximize the total revenue. With some assumptions on the demand distribution and the linear approximation technique, we develop a mixed IP model for solving our problem optimally. From the computational experiments, we can find our optimization model can be applied well for real-world application.

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

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2008.10a
• /
• pp.65-75
• /
• 2008

Over the last three decades, there are many researches focusing on the practice and theory of RM in airlines. Most of them have dealt with a seat assignment problem for maximizing the total revenue. In this study, we focus on a seat assignment problem in airlines. The seat assignment problem can be modeled as a stochastic programming model which is difficulty to solve optimally. However, with some assumptions on the demand distribution functions and a linear approximation technique, we can transform the complex stochastic programming model to a Linear Programming model. Some computational experiments are performed to evaluate out model with randomly generated data. They show that our model has a good performance comparing to existing models, and can be considered as a basis for further studies on improving existing seat assignment models.

• Korean Management Science Review
• /
• v.26 no.3
• /
• pp.117-131
• /
• 2009

Over the last three decades, there are many researches focusing on the practice and theory of RM in airlines. Most of them have dealt with a seat assignment problem for maximizing the total revenue. In this study, we focus on a seat assignment problem in airlines. The seat assignment problem can be modeled as a stochastic programming model which is difficulty to solve optimally. However, with some assumptions on the demand distribution functions and a linear approximation technique, we can transform the complex stochastic programming model to a Linear Programming model. Some computational experiments are performed to evaluate out model with randomly generated data. They show that our model has a good performance comparing to existing models, and can be considered as a basis for further studies on improving existing seat assignment models.

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

• 제어로봇시스템학회:학술대회논문집
• /
• 2003.10a
• /
• pp.458-461
• /
• 2003

This paper presents a concept on seat assignment systems. The concept is based on the assumption that customers or passengers prefer to select seats at their own choosing and allowing them to do so would fragment remaining seats. This undesirable condition may make a group of people intending to be seated together unable to find a sufficient number of consecutive seats. The concept proposed is to set aside a number of seats when the map of available seats is shown for customer's selection. A number of functions are created to allot seats to be visible for choosing according to the number and locations of the remaining seats and the number in the group of the passengers. Passengers' preferences such as window or aisle seating, front seating are taken into accounts. A primitive example of seat assignment system of a Boeing 717 aircraft, assuming the number of passengers in a group being 1, 2 or 3, is given based on the concept.

• Journal of the Korea Institute of Information and Communication Engineering
• /
• v.11 no.12
• /
• pp.2319-2326
• /
• 2007

Recently, various systems are being developed for efficiently assignment and management of such resources as seats of airplane, train, bus, theater, and library. If it occurs the exceed demand for the limited seat resource, the system has much difficulty for the seat resource management and assignment efficiently. The existed allocation and management methods were processed using the centralization management of the limited seat resource. But these methods cannot consider the preference of each user, and these not support the fairness of usage for each person. Accordingly, we design and implement the seat assignment system based on the customer-driven for the seat management in the reading room of library, customer selects directly for the fairness of seat.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2006.11a
• /
• pp.535-538
• /
• 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 Information Technology Applications and Management
• /
• v.20 no.4
• /
• pp.33-45
• /
• 2013

The trend toward ubiquitous computing does not represent simply a change in the way people access and use information. In the end it will have a profound effect on the way people work with each other. In this paper, we have defined functionalities of an information system that helps operate a kind of smart office environment, and implemented the system using RFID technology. The system provides three major functions-time and attendance management, personalized message notification, and flexible seat allocation for a smart working center. We have also suggested the key performance indicators and performed a KPI analysis to measure an efficiency of implemented system.

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