Decision Support System for Dynamic Pricing of Parallel Flights

Subject Areas : International Journal of Decision Intelligence

Sasan Barak ¹ , Farhad Etebari ² , Hamidreza Maghsoudlou ³

1 - Department of Decision Analytics and Risk, Southampton Business School, University of Southampton, UK
2 - Department of Industrial Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran
3 - Faculty of Economics, VŠB Technical University of Ostrava, Ostrava, 70200, Czech Republic

Received: 2022-10-25 Accepted : 2022-12-28 Published : 2024-09-22

Keywords: price-based techniques, multinomial logit model (MNL), dynamic pricing, revenue management (RM),

Abstract :

In the recent years, traditional revenue management (RM) models are shifting from them from quantity-based to price-based techniques and incorporating individuals’ decisions within optimization models. In this paper, we have replaced, quantity-based with price-based techniques and proposed the MNL to capture more choice probabilities Computation results indicate the obtained revenue by using proposed model for deciding about the most appropriate product for offering to the customersIn the recent years, traditional revenue management (RM) models are shifting from them from quantity-based to price-based techniques and incorporating individuals’ decisions within optimization models. In this paper, we have replaced, quantity-based with price-based techniques and proposed the MNL to capture more choice probabilities Computation results indicate the obtained revenue by using proposed model for deciding about the most appropriate product for offering to the customers.In the recent years, traditional revenue management (RM) models are shifting from them from quantity-based to price-based techniques and incorporating individuals’ decisions within optimization models. In this paper, we have replaced, quantity-based with price-based techniques and proposed the MNL to capture more choice probabilities Computation results indicate the obtained revenue by using proposed model for deciding about the most appropriate product for offering to the customers.