Structure and models of revenue management decision support system

Nowadays, to make additional profits, revenue management system plays an important role for airline. This study presents a framework of airline revenue management decision support system. The system includes 3 sub-systems, interface, model management and database management which integrate OLTP and OLAP techniques. Several algorithms for flight demand forecasting, overbooking and seat inventory control are designed. Cluster algorithm is employed to decrease online run-time for flight demand forecasting without considering season, week and event attributes of flights. Overbooking algorithm is built in terms of binary distribution of passenger arrival. Multi-segments seat inventory control algorithm based-on expected marginal seat revenue (EMSR) provides a new way to control 3 legs flight. The system has been applied successfully in Xiamen Airline of China. The results have shown a great efficiency of this system.