Yield Management Paper

Journal of the Operational Research Society (1999) 50, 1098–1103. doi:10.1057/palgrave.jors.2600712

Airline overbooking in the multi-class case

J Coughlan1

1Dublin Institute of Technology, Dublin, Ireland

Correspondence: J Coughlan, Dublin Institute of Technology, Mountjoy Square, Dublin 1, Ireland

Received November 1997; Accepted November 1998.

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Abstract

This paper presents an airline overbooking model at a class level for one service compartment–cabin. Class level demand data is used to determine the number of bookings that can be taken for each class. The model is optimised through the use of multi-dimensional search routines. The control level model developed is tested with data supplied by Ireland's national airline, Aer Lingus. The model shows a significant improvement over previous methods employed by Aer Lingus and was subsequently adopted by the airline.

Keywords:

air transport, yield management, overbooking

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