Abstract
In this article, we review the role of distribution in revenue management (RM) in the airline industry over the last 50 years, describing the evolution of these systems and providing evidence for their interdependence. With the omnipresence of the Internet, the proliferation of mobile communication devices and the growing trend of personalized retailing, the benefits of the distributor middleman are being questioned; airlines can access customers through their own websites and dynamically package best offers. In this fast changing environment, we discuss our vision for the future roles of RM and distribution.
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Notes
Airline Deregulation Act, Pub. L. 95-504, signed into law by President Jimmy Carter on 24 October 1978.
The look-to-book ratio is a measure of the number of customers who visit a website per booking made.
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Acknowledgements
We would like to thank Barry Smith, former Chief Scientist at Sabre, and Bill Brunger, former Senior Vice President of Network RM and Distribution at Continental Airlines, for their constructive feedback.
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Fiig, T., Cholak, U., Gauchet, M. et al. What is the role of distribution in revenue management? – Past and future. J Revenue Pricing Manag 14, 127–133 (2015). https://doi.org/10.1057/rpm.2015.1
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DOI: https://doi.org/10.1057/rpm.2015.1