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Optimal inventory control strategy based on callable mechanism in airline industry

  • Zhi Yang Zhong*
  • , Jin Lin Li
  • , Lun Ran
  • *Corresponding author for this work
    • Beijing Institute of Technology

    Research output: Contribution to journalArticlepeer-review

    Abstract

    As to the problem of the influences and applicability of the marketing strategy in airlines' revenue management, it concerns about the recalling tickets on off season by the way of new callable mechanism. The research will created integer random optimization model, which included three booking periods, that is callable tickets booking period, low-fare booking period and high-fare booking period. And then the optimized capacity control number can be determined and the application validity of off season callable procedure can be acquired by numerical simulation. Finally, comparison analysis under callable mechanism is discussed. By offering callable products, the airlines can acquire risk free extra income by applying callable procedure.

    Original languageEnglish
    Pages (from-to)91-96
    Number of pages6
    JournalJournal of Beijing Institute of Technology (English Edition)
    Volume19
    Issue numberSUPPL. 1
    Publication statusPublished - Dec 2010

    Keywords

    • Callable tickets
    • Inventory control
    • Random optimization
    • Revenue management

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