Research On Competition-related Seat Inventory Control Of Airline Revenue Management

Revenue management is the hotspot of scientific management method and seat inventory control, which is at the core of airline revenue management. As the traditional seat inventory control fails to include the factor of competition, which is very important in seat inventory control, the revenue management system introduced from overseas usually can not be applied efficiently. This thesis focuses on the study of the competition-related seat inventory control, mainly including the following aspects:First, the origins, development, research contents and significance of revenue management are introduced. Emphasis is placed on the contents and development of revenue management, especially on the competition-related seat inventory control.Second, when there are several airlines on the same flight route, a seat arrangement by an airline will influence not only the income of the airline oneself, but also that of other airlines. Based on the characteristics of the local airline market, this thesis applies purely strategic Nash Equilibrium, which is derived from game theory, to the seat inventory control model, then analyzes the feasibility of the game model on a single route with examples, and works out the seat inventory control policies for the transit flights.Third, on the basis of the explicit equilibrium solution, this thesis analyzes the influences by three factors: seating capacity, demand transfer rate, and passenger demand. And then it puts forward the adjustment strategy. Finally, through an imitating research on explicit equilibrium solution, this thesis makes a thorough analysis of the conditions of local aviation market.