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Modelling dependent demand structures in a network-based revenue opportunity model

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Journal of Revenue and Pricing Management Aims and scope

Abstract

Techniques for performance measurement are an integral part of a revenue management (RM) system. The Revenue Opportunity Model (ROM) is a widely known method to measure RM performance. However, a traditional ROM does not show valid results for dependent demand structures and for network-based RM controls. While earlier studies focused on the robustness of the network-based ROM with independent demand, this article describes an extension of the network-based ROM to dependent demand structures. Furthermore, we simulate the effect of input data errors on ROM robustness under different scenarios using realistic data of a large network airline and present computational results.

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Authors and Affiliations

  1. University of Paderborn, Paderborn, Germany

    Christian Temath & Leena Suhl

  2. Vice President Commercial Information Systems Air Berlin PLC & Co., Luftverkehrs KG Saatwinkler Damm 42–43, 13627, Berlin, Germany

    Michael Frank

  3. Lufthansa German Airlines, Frankfurt am Main, Germany

    Stefan Pölt

Authors
  1. Christian Temath
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  2. Michael Frank
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  3. Stefan Pölt
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  4. Leena Suhl
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Corresponding author

Correspondence to Christian Temath.

Additional information

4chairs the Decision Support & Operations Research Lab at the University of Paderborn, Germany. Her research focuses on planning for public transport and logistics with special regard to optimization, simulation and robust planning.

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Temath, C., Frank, M., Pölt, S. et al. Modelling dependent demand structures in a network-based revenue opportunity model. J Revenue Pricing Manag 12, 162–176 (2013). https://doi.org/10.1057/rpm.2012.19

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  • DOI: https://doi.org/10.1057/rpm.2012.19

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