Contract optimization with front-end fare discounts for airline corporate deals
Contract optimization with front-end fare discounts for airline corporate deals
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DOI：
10.1016/j.tre.2005.12.002
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发表时间：
2007-07
影响因子：
10.6
通讯作者：
Julian Pachon;M. Erkoc;E. Iakovou
中科院分区：
文献类型：
--
作者：
Julian Pachon;M. Erkoc;E. Iakovou
本文建立了一个非线性规划模型来设计航空公司的最优公司合同，该合同规定了所有净值的前端折扣，这些净值是由航线、机舱类型和票价等级的组合定义的。航空公司的利润是用一个多项Logit函数来建模的，该函数捕捉了客户在竞争市场中的选择行为。使用替代公式来研究价格弹性、需求和竞争对最优折扣策略的影响。通过对某大型航空公司的案例研究，验证了该模型的有效性。结果表明，航空公司可以通过优化企业合同来显著增加收入。
This paper develops a non-linear programming model to design optimal corporate contracts for airlines stipulating front-end discounts for all nets, which are defined by combination of routes, cabin types, and fare classes. The airline’s profit is modeled using a multinomial logit function that captures the client’s choice behavior in a competitive market. Alternative formulations are employed to investigate the impact of price elasticity, demand, and competition on optimal discounting policies. A case study involving a major carrier is presented to demonstrate the model. The results indicate that airlines can increase revenues significantly by optimizing corporate contracts using the suggested model.