Airline Yield Management

SC10.1 Estimation & Incorporation of DRB-Effects in Yield Management Systems Henrik Toksvang --- Scandinavian Airlines System, Space Control Services, Hedegaardsvej 88, DK 2300 Copenhagen S, , Denmark

Logit-models from discrete choice analysis are used to estimate¨ deviation, recapture, and buy-up effects, with inputs coming from¨ revealed as well as stated preferences. These data, supplemented by¨ different socioeconomic parameters, are assembled and processed to¨ form a picture of the general preferential pattern.

SC10.2 Advanced Origin & Destination Revenue Management: A Practical Approach Glenn Colville --- United Airlines, Inc., World Headquarters WHKQB, PO Box 66100, Chicago, IL 60666 , (gcolville@ual.com)

Several researchers in academia, consulting and airlines have¨ suggested approaches that would significantly increase revenue¨ compared to traditional virtual nesting approaches to O&D control.¨ This presentation shows how what seems at first a simple extention¨ of virtual nesting can capture the potential revenue in an¨ implementable system.

SC10.3 Research on Bid Price Dynamics Robert L. Phillips, Gregory L. Campbell, Subramanian Janakiram --- Decision Focus Inc., 650 Castro St., Ste. 300, Mountain View, CA 94041 , (bobp@dfi.com)

We analyze and compare alternative methods of calculating bid prices¨ that explicitly use the knowledge of the demand pattern, i.e., the¨ distribution of demand by booking class and time before departure,¨ and the fact that bid prices will be recalculated as demand¨ uncertainty resolves as departure approaches.