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Premium cabin capacity sharing strategies: airline RM insights
Journal of Revenue and Pricing Management Pub Date : 2021-06-11 , DOI: 10.1057/s41272-021-00326-x
Germán Escovar-Álvarez , Peter P. Belobaba

This paper explores revenue management strategies for premium cabin capacity sharing, that is, accepting additional bookings in economy fare classes when some premium cabin seats are expected to remain empty. Two heuristics are presented and tested to evaluate the impacts of premium cabin capacity sharing on airline revenues and loads. These RM strategies are tested using the Passenger Origin Destination Simulation (PODS), which replicates the interactions between airline revenue management systems and passenger choice of airline itineraries, fare types and service offerings. Based on the simulations, the methodologies proposed can generate total revenue gains of up to 1.1%. However, two caveats are identified: first, losses in the revenue captured from premium fare classes are likely to be experienced due to displacement by economy fare class passengers. Second, premium cabin capacity sharing should only be implemented in the final stages of the booking process; otherwise, the sharing heuristics can result in revenue losses for the airline.



中文翻译:

高级客舱容量共享策略:航空公司 RM 见解

本文探讨了高级客舱容量共享的收入管理策略,即在某些高级客舱座位预计空置时接受经济舱票价舱位的额外预订。提出并测试了两种启发式方法,以评估优质客舱容量共享对航空公司收入和负载的影响。这些 RM 策略使用乘客始发地目的地模拟 (PODS) 进行测试,该模拟复制了航空公司收入管理系统与航空公司行程、票价类型和服务产品的乘客选择之间的相互作用。根据模拟,所提出的方法可以产生高达 1.1% 的总收入收益。但是,确定了两个警告:首先,由于经济舱乘客的流离失所,从高级舱位获得的收入可能会遭受损失。其次,优质客舱容量共享应仅在预订过程的最后阶段实施;否则,共享启发法可能会导致航空公司的收入损失。

更新日期:2021-06-11
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