Optimal seat allocation for flights with one intermediate stop

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Abstract

During the time prior to departure of a flight with an intermediate stop decisions must be made concerning the allocation of reserved seats to passengers requesting space on the full or partial spans of the flight. The paper presents a model for finding the maximum allowable allocation of seats on the various spans at each time prior to departure such that a maximum expected contribution to profit for the flight is obtained.

The model utilizes the time distribution of reservations and cancellations for both spans. Consideration is given to the effects of waitlists, standbys and overbookings. A Bayesian reassessment of probabilities is incorporated in a sequential decision procedure. A computer program was written to perform the calculations, and the results of a short sample problem which was run to test the validity of the model are presented.

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Marvin Hersh is a Senior Lecturer in the Department of Industrial Engineering and Management, Ben-Gurion University of the Negev, Beersheva, Israel. He holds an S.B. Degree in Chemical Engineering and an S.M. Degree in Industrial Management both from the Massachusetts Institute of Technology, and an M.S. in Operations Research and a Ph.D. in Engineering from the University of Southern California. Dr. Hersh has published papers in several journals including Management Science, Omega and Transportation Research.

Shaul P. Ladany is the Chairman of the Department of Industrial Engineering and Management, Ben-Gurion University of the Negev, Beersheva, Israel. He holds a B.Sc. and an M.Sc. in Mechanical Engineering from the Technion, Haifa, a Graduate Diploma in Business Administration from the Hebrew University, Jerusalem, and a Ph.D. in Business Administration from Columbia University. He published over 40 papers in various journals, edited two books, co-edited two Special Issues of the journal Management Science, and holds 8 U.S. patents. Dr. Ladany is an amateur race walker: he holds the world 50 mile record, won the world 100km Championship in 1972, won National Championships in Belgium, Israel, South Africa, Switzerland and the U.S.A., won the major long-distance races all over the world, and represented Israel in the Olympic Games in Mexico (1968), Munich (1972) and in the 50 km World Championship in Malmö (1976).

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