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Bid-price heuristics for unrestricted fare structures in cargo revenue management

CASTELLI, LORENZO
•
Pesenti, Raffaele
•
RIGONAT, DESIREE
2014
  • book part

Abstract
In the present work we propose two bid-price based heuristic approaches to tackle a stochastic price-oriented demand of air cargo transportation. We assume fares are non-decreasing over time: the earlier the booking, the cheaper the fare. We consider a single-leg flight without overbooking practices or no-show customers. The proposed framework is suited for air cargo carriers providing a unique product to all its price-oriented customers. The business sustainability relies on a significant reduction in fares that would outperform other benefits, an earlier time of delivery above all. Nevertheless, our modelling framework may be easily extended to other modes of cargo transportation, such as maritime, where a given shipment receives the same service regardless the paid fare, which, in turn, only depends on the time the booking request is made.
DOI
10.1007/978-3-319-04630-3_15
Archivio
http://hdl.handle.net/11368/2835355
info:eu-repo/semantics/altIdentifier/scopus/2-s2.0-84921752466
http://www.springer.com/series/11156
Diritti
metadata only access
Soggetti
  • Air cargo

  • Bid-price

  • Capacity management

  • Dynamic programming

  • Heuristic

  • Revenuemanagement

  • Control and Systems E...

  • Computer Science (all...

Scopus© citazioni
1
Data di acquisizione
Jun 7, 2022
Vedi dettagli
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