Airline robust overbooking strategy with limited information

Overbooking is not only an important content of revenue management, but also an effective way to increase airlines' profits. Arrival rate of ticketed passengers is a key factor to determine the number of overbooking, but its information is often limited. Based on the limited distribution information of arrival rate, this paper establishes a single-fare-class overbooking model, and obtains a robust overbooking strategy. Numerical analysis shows characteristics and stability of the strategy.