Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Fair Revenue Sharing Mechanisms For Strategic Passenger Airline Alliances
Download Fair Revenue Sharing Mechanisms For Strategic Passenger Airline Alliances full books in PDF, epub, and Kindle. Read online Fair Revenue Sharing Mechanisms For Strategic Passenger Airline Alliances ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Fair Revenue Sharing Mechanisms for Strategic Passenger Airline Alliances by : Demet Çetiner
Download or read book Fair Revenue Sharing Mechanisms for Strategic Passenger Airline Alliances written by Demet Çetiner and published by Springer Science & Business Media. This book was released on 2013-04-03 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt: A major problem arising in airline alliances is to design allocation mechanisms determining how the revenue of a product should be shared among the airlines. The nucleolus is a concept of cooperative game theory that provides solutions for allocating the cost or benefit of a cooperation. This work provides fair revenue proportions for the airline alliances based on the nucleolus, which assumes a centralized decision making system. The proposed mechanism is used as a benchmark to evaluate the fairness of the revenue sharing mechanisms, where the alliance partners behave selfishly. Additionally, a new selfish revenue allocation rule is developed that improves the performance of the existing methods.
Book Synopsis Selfish Revenue Sharing Mechanisms for Airline Alliances by : Demet Çetiner
Download or read book Selfish Revenue Sharing Mechanisms for Airline Alliances written by Demet Çetiner and published by . This book was released on 2011 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Airline Alliance Revenue Management by : Alyona Michel
Download or read book Airline Alliance Revenue Management written by Alyona Michel and published by . This book was released on 2012 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: Airlines participating in alliances offer code share itineraries (with flight segments operated by different partners) to expand the range of origin-destination combinations offered to passengers, thus increasing market share at little cost. The presence of code share flights presents a problem for airline revenue management (RM) systems, which aim to maximize revenues in an airline's network by determining which booking requests are accepted. Because partners do not jointly optimize revenues on code share flights, alliance revenue gains from implementing advanced RM methods may be lower than an individual airline's gains. This thesis examines seat availability control methods that alliance partners can adopt to improve the total revenues of the alliance without formally merging. Partners share information about the opportunity costs to their network, called "bid prices", of selling a seat on their own flight leg, a mechanism termed bid price sharing (BPS). Results show that BPS methods often improve revenues and work best for networks with certain characteristics and partners with similar RM systems that exchange recently calculated bid prices as often as possible. Gains are typically only achieved if both alliance partners participate in the code share availability decision (called dual control) rather than one partner only, but implementation of dual control is more difficult for airlines in practice. In the best case scenario, gains of up to .40% where achieved, which can translate into $120 million per year for the largest airlines. In our simulations, BPS with dual control and frequent bid price calculation and exchange was the only method that produced consistently positive revenue gains in all the scenarios tested. Therefore, alliance airlines must consider the trade off between revenue gains and implementation difficulties of more frequent bid price exchange or dual control.
Author :Management Association, Information Resources Publisher :IGI Global ISBN 13 :1522539107 Total Pages :1780 pages Book Rating :4.5/5 (225 download)
Book Synopsis Operations and Service Management: Concepts, Methodologies, Tools, and Applications by : Management Association, Information Resources
Download or read book Operations and Service Management: Concepts, Methodologies, Tools, and Applications written by Management Association, Information Resources and published by IGI Global. This book was released on 2017-11-30 with total page 1780 pages. Available in PDF, EPUB and Kindle. Book excerpt: Organizations of all types are consistently working on new initiatives, product lines, and workflows as a way to remain competitive in the modern business environment. No matter the type of project at hand, employing the best methods for effective execution and timely completion of the task is essential to business success. Operations and Service Management: Concepts, Methodologies, Tools, and Applications is a comprehensive reference source for the latest research on business operations and production processes. It examines the need for a customer focus and highlights a range of pertinent topics such as financial performance measures, human resource development, and business analytics, this multi-volume book is ideally designed for managers, professionals, students, researchers, and academics interested in operations and service management.
Book Synopsis Dynamic Revenue Management in Airline Alliances by : Christopher P. Wright
Download or read book Dynamic Revenue Management in Airline Alliances written by Christopher P. Wright and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Major airlines are selling increasing numbers of interline itineraries, in which flights operated by two or more airlines are combined and sold together. One reason for this increase is the rapid growth of airline alliances, which promote the purchase of interline itineraries and therefore virtually extend the reach of each alliance member's network. This practice, however, creates a difficult coordination problem: each member of the alliance makes revenue management decisions to maximize its own revenue, and the resulting behavior may produce sub-optimal revenue for the alliance as a whole. Airline industry researchers and consultants have proposed a variety of static and dynamic mechanisms to control revenue management decisions across alliances (a dynamic mechanism adjusts its parameters as the number of available seats in the network changes). In this paper, we formulate a Markov-game model of a two-partner alliance that can be used to analyze the effects of these mechanisms on each partner's behavior. We begin by showing that no Markovian transfer pricing mechanism can coordinate an arbitrary alliance. Next, we examine three dynamic schemes, as well three forms of the static scheme widely used in practice. We derive the equilibrium acceptance policies under each scheme and use analytical techniques, as well as numerical analyses of sample alliances, to generate fundamental insights about partner behavior under each scheme. The analysis and numerical examples also illustrate how certain transfer price schemes are likely to perform in networks with particular characteristics.
Book Synopsis Global Strategic Alliances in Scheduled Air Transport by : Claus-Friedrich Laaser
Download or read book Global Strategic Alliances in Scheduled Air Transport written by Claus-Friedrich Laaser and published by . This book was released on 2000 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Airline Choices for the Future by : Kostas Iatrou
Download or read book Airline Choices for the Future written by Kostas Iatrou and published by Routledge. This book was released on 2016-03-16 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: Airline Choices for the Future: From Alliances to Mergers offers an up-to-date assessment of the industry as it stands today, delivering a comprehensive insight into how the world of airline alliances is changing, and how the merger phenomenon is likely to fit into the new scenario. The purpose of this book is twofold. Firstly, it outlines the evolution and the reasons behind alliances between international air carriers, the alliances' track records and the way they have affected airlines and the air transport industry. Secondly, drawing on past and more recent developments in the industry, it examines the experiences airlines involved in cross-border mergers have gone through and the advantages and difficulties they have come across. Alliances and mergers are presented from both the airline and the consumer perspective. The book provides a balanced account of where mergers and alliances have taken the industry to date, bridging the gap between merger theory and implemented practices and strategies. It also identifies the challenges alliances and cross-border mergers have faced and highlights the key forces affecting airline development. Theoretical evidence is supplemented by data collected via surveys and interviews with airline executives, aviation experts, consultants and regulatory bodies.
Book Synopsis Revenue Sharing in Airline Alliance Networks by : Yuntong Wang
Download or read book Revenue Sharing in Airline Alliance Networks written by Yuntong Wang and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis An Option Based Revenue Management Procedure for Strategic Airline Alliances by : Michaela Graf
Download or read book An Option Based Revenue Management Procedure for Strategic Airline Alliances written by Michaela Graf and published by . This book was released on 2009 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Modeling and Analysis of Revenue Management in Airline Alliances by : Christopher Pember Wright
Download or read book Modeling and Analysis of Revenue Management in Airline Alliances written by Christopher Pember Wright and published by . This book was released on 2010 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: "From the most basic code-share agreements to the largest international alliances, airlines are using itineraries that bundle seats on their own flight legs with those of other airlines as a way to generate more revenue. With this growing practice comes an increasing need for researchers to look at how airlines can best manage the sharing of revenue between the airlines involved. This dissertation represents a first step toward meeting that need. In three chapters, we model and analyze the process of revenue management in airline alliances. In Chapter 2, we begin by creating a model for the revenue management decisions faced by two partners in an alliance. We formulate a finite-horizon Markov game, over which the two airlines make accept/deny decisions on requests for itineraries on not only their own networks, but on their partners' networks, as well. The key distinctions between our model and previous single network models are the presence of gaming mechanics and the existence of both intraline itineraries - those on a single airline's network - and interline itineraries - those on both partners' networks. This model is used as the basis for the remainder of the dissertation and also can serve as the framework for any future research in the area. In the remainder of Chapter 2, we examine the game of complete information, in which both partners know each other's demand and revenue forecasts, as well as their inventory levels. Specifically, we consider three dynamic schemes that change the revenue shares received by each airline over the horizon based on the state of the system, and contrast them with existing static schemes with fixed revenue shares. We determine the equilibrium behavior for each scheme and provide insight into when each may perform well. We then show that, while well selected static schemes can perform similarly well, the dynamic schemes are far less susceptible to changes in the demand faced by the alliance. In Chapter 3, we acknowledge the limitations of the complete information assumption due to legal, computational and competitive reasons, and focus on a game of incomplete information, in which partners do not know each other's inventory levels or forecasts. We only allow them to share bid prices, a commonly calculated quantity in modern revenue management systems. Through the selection of particular sharing scheme and a clever heuristic assumption, we are able to decouple the alliance problem into two single network problems connect by the posted bid prices. The assumption - that the partner's bid prices will remain constant over the horizon - is loosely based upon a result in the literature that is supported by numerical simulation. We show that the application of this heuristic leads to very favorable results despite the limited information shared between the partners. In addition, because it decouples perfectly into single network problems, any one of the numerous existing approximation schemes for that problem can be employed. This is particularly beneficial since many of the approximation methods are already being utilized in practice, facilitating the adoption of our heuristic for handling interline itineraries. In Chapter 4, we take the constant bid price assumption one step further, looking at its application in the single airline network problem. We describe some schemes from the literature that are logically consistent with the schemes shown in Chapter 3. We also provide a new approximation method that in sample problems is shown to provide high performance (% of optimal revenue) and stable bid prices. This scheme utilizes a simultaneous-perturbation stochastic approximation method in searching for the optimal vector of bid-prices. After examining their relative performance in the single-network environment, we point out the characteristic of these schemes that may lend themselves to performing well when combined with the decoupling alliance heuristics provided in Chapter 3. Simulations of these schemes suggest that these characteristics can have greater influence on alliance revenues than the performance of the schemes in single networks"--Leaves v-vi.
Book Synopsis Alliance Revenue Management in Practice by : Himanshu Jain (S.M.)
Download or read book Alliance Revenue Management in Practice written by Himanshu Jain (S.M.) and published by . This book was released on 2011 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: The primary motivations for the formation of airline alliances have been to increase revenues and decrease costs for alliance partners. A major advantage comes through increase in the number of destinations served by an airline at little costs, by using codesharing. Airlines share seat inventory on each other's codeshare flights which complicates their revenue management practice and leads to sub optimal revenue gains. This thesis analyzes the challenges related to alliance revenue management in practice and proposes innovative and feasible solutions to increase revenues for the combined alliance. The four key dimensions of the alliance revenue management problem are analyzed: recording & forecasting, seat allocation method or optimizer, codeshare valuation in the optimizer and availability control of codeshare bookings. The performance of different techniques is quantified using the Passenger Origin-Destination Simulator (PODS). It is found that sharing of information between partners to different degrees can be used to improve revenues. A new valuation scheme called dynamic valuation is developed in an effort to increase the combined alliance revenues by using bid price sharing, a method of sharing information related to codeshare legs. Dynamic valuation leads to additional revenue gains in the range of 0.30% to 0.50% over other techniques. This can translate into an incremental revenue gain, up to $ 100 M per year, for larger airlines in alliance partnerships. Dynamic valuation also provides a basis for further development of models related to revenue sharing proportions of alliance partners. The challenges and risks involved in implementing dynamic valuation are discussed.
Book Synopsis Fair Adjustment Strategies for Airline Revenue Management and Reservation Systems by : Yin Shiang Valenrina Soo
Download or read book Fair Adjustment Strategies for Airline Revenue Management and Reservation Systems written by Yin Shiang Valenrina Soo and published by . This book was released on 2007 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: (Cont.) The goal of this thesis is to provide a more comprehensive investigation into the effectiveness of fare adjustment as a tool to improve airline revenues in this new environment by 1) extending the investigation of the effectiveness of fare adjustment with standard forecasting to leg-based RM systems (namely EMSRb and HBP) and also a mixed fare structure where different fare structures are used for different markets, and 2) looking at the alternative use of fare adjustment in the reservation system. Experiments with the Passenger Origin-Destination Simulator demonstrate that RM Fare Adjustment with standard forecasting can improve an airline's network revenue by 0.8% to 1.3% over standard revenue management methods. In particular, RM Fare Adjustment reduces the aggressiveness of path forecasting through the lowering of bid prices as it takes into account the risk of buying-down. Simulations of Fare Adjustment in the Reservation System also showed positive results with revenue improvement of about 0.4% to 0.7%.
Book Synopsis Airline Management by : Paul Stephen Dempsey
Download or read book Airline Management written by Paul Stephen Dempsey and published by . This book was released on 1997 with total page 570 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Decentralized Code-share Revenue Management in Airline Alliances by : Max Gerlach
Download or read book Decentralized Code-share Revenue Management in Airline Alliances written by Max Gerlach and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The Airline Industry by : Alessandro Cento
Download or read book The Airline Industry written by Alessandro Cento and published by Springer Science & Business Media. This book was released on 2008-10-15 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: The debate on the future of the aviation sector and the viability of its traditional business practices is the core of this book. The liberalization of the EU market in the 1990s has radically modi?ed the competitive environment and the nature of airline competition. Furthermore, the new millennium began with terrorist attacks, epidemics, trade globalization, and the rise of oil prices, all of which combined to push the industry into a “perfect storm”. Airline industry pro?tability has been an elusive goal for several decades and the recent events has only accentuated existing weaknesses. The main concern of ind- try observers is whether the airline business model, successful during the 1980s and 1990s, is now sustainable in a market crowded by low-cost carriers. The airlines that will respond rapidly and determinedly to increase pressure to restructure, conso- date and segment the industry will achieve competitive advantages. In this context, the present study aims to model the new conduct of the ‘legacy’ carriers in a new liberalized European market in terms of network and pricing competition with l- cost carriers and competitive reaction to the global economic crises.
Book Synopsis Airline Alliances by : Pablo Eduardo Fernandez de la Torre
Download or read book Airline Alliances written by Pablo Eduardo Fernandez de la Torre and published by . This book was released on 1999 with total page 214 pages. Available in PDF, EPUB and Kindle. Book excerpt: Airline alliances are one of the critical issues faced by the airline industry in the 1990s. In this thesis, an overview of the most significant impacts that the formation of alliances have brought to the industry-especially to airline management-is presented. Part I presents several frameworks to help understand why alliances have become so critical for the participating airlines. A definition of airline alliances, different typologies to classify them, the main motivations for their formation, and the recent trends in the industry are presented. The alliances' main objective is the increase of market coverage, though the strengthening of market position on certain routes and the reduction of costs are additional sources of competitive advantage they provide to the participating airlines. Alliances can also bring many benefits to customers in terms of improved service, although they represent a threat for sustainable competition. Part II analyzes two critical problems faced by airline management. First, it is analyzed the effect of the network connectivity through an alliance hub-to-hub linkage scheme on the increase in market share. The analysis shows that the alliance hub-to-hub link represents a significant source of additional traffic for the alliance. Accessibility, a measure developed for network connectivity, has proven to be a critical factor in increasing market share on the alliance hub-to-hub link. Scheduling coordination within alliances, therefore, should consider the maximization of accessibility as a critical driver of demand. The second problem analyzed is the introduction of codesharing into revenue management systems. There are four different problems associated with it, which are interrelated in practice. One of them, the valuation and seat inventory control process for codeshare traffic is analyzed in detail. Two main revenue management approaches to handle codesharing are presented: The proration approach and the fully integrated approach. The latter aims to maximize the combined revenue and implies higher complexity in its implementation, while the former has easier implementation. Under the proration approach, there is a significant source of revenue loss due to an incorrect valuation of the revenue contribution brought by codeshare traffic. Although a solution is proposed to solve this problem, a final answer should include a redefinition of the way codesharing agreements are currently established.
Book Synopsis Airline Operations and Management by : Gerald N. Cook
Download or read book Airline Operations and Management written by Gerald N. Cook and published by Taylor & Francis. This book was released on 2023-05-04 with total page 413 pages. Available in PDF, EPUB and Kindle. Book excerpt: Airline Operations and Management: A Management Textbook presents a survey of the airline industry, with a strong managerial perspective. It integrates and applies the fundamentals of several management disciplines, particularly operations, marketing, economics and finance, to develop a comprehensive overview. It also provides readers with a solid historical background, and offers a global perspective of the industry, with examples drawn from airlines around the world. Updates for the second edition include: Fresh data and examples A range of international case studies exploring real-life applications New or increased coverage of key topics such as the COVID-19 pandemic, state aid, and new business models New chapters on fleet management and labor relations and HRM Lecture slides for instructors This textbook is for advanced undergraduate and graduate students of airline management, but it should also be useful to entry and junior-level airline managers and professionals seeking to expand their knowledge of the industry beyond their functional area.
