In this thesis, the seat inventory control problem is studied for airlines from the perspective
of a risk-averse decision maker. There are only a few studies in the revenue
management literature that consider the risk factor. Most of the studies aim at finding
the optimal seat allocations while maximizing the expected revenue and do not take
the variability of the revenue and hence a risk measure into account. This study aims
to decrease the variance of the revenue by increasing the capacity utilization called
load factor in the revenue management literature. In addition to expected revenue,
load factor is an important performance measure the state companies work with. For
this purpose, two types of models with load factor formulations are proposed. This
thesis is the first study in the revenue management literature for the airline industry
that uses the load factor formulations in the mathematical models. It is an advantage
to work with load factor formulations since the models with load factor formulations
are much easier to formulate and solve as compared to other risk sensitive models in
the literature. The results of the proposed models are evaluated by using simulation
for a sample network under different scenarios. The models we propose allow us to control the variability of revenue by changing the used capacity of the aircraft. This
is at the expense of a decrease in the revenue under some scenarios. The models we
propose perform satisfactorily under all scenarios and they are strongly recommended
to be used especially for the small-scale airline companies and state companies and
for scheduling new flights even in large scale, well established airline companies.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/12613490/index.pdf |
| Date | 01 July 2011 |
| Creators | Eroglu, Fatma Esra |
| Contributors | Avsar, Zeynep Muge |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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