Research On Airline's Seating Control Strategy For Callable Mechanism

At this stage, as the competition of aviation industry growing, in order to survival and development, domestic airlines realize the importance of introducing revenue management systems. In order to achieve the maximization of revenue, more and more airlines start to introduce foreign advanced revenue management system to control seats,Revenue Management is the new management methods and research hot in the past 20 years. Seating control is an important part of revenue management. In this paper, we analyze the impacts to airline which introduces callable mechanism to sale tickets, and show that callable mechanism can provide a risk less source of additional revenue to airline. In the establishment of model process, we separate callable tickets and ordinary tickets, set up a three-period and three-fare callable revenue model. Finally, the optimization of callable tickets booking limit is obtained, and we make the numerical examples to authenticate.Callable mechanism is a very good tool to achieve a win-win situation both for travelers and airlines, it's an additional revenue increase measures with risk-free. Callable mechanism offers a choice of channels for airlines to increase the revenue, it can be used to amend decision as high-class demand forecasting inaccurate. At the same time, both for time-sensitive or price-sensitive passengers, callable mechanism is also a good tool to control seats. In fact, callable mechanism is a Pareto improvement process. Therefore, the research and implementation of callable mechanism have great significance to the air transport enterprises.