Revenue Management
and Dynamic Pricing:
Part I
Outline
Revenue Management
and Dynamic Pricing
What is Revenue Management?
What is Revenue Management?
Rudiments
Industry Popularity
Industry Accolades
Analyst Accolades
Academic Accolades
Academic Accolades
Application Areas
Dynamic Pricing
Traditional Revenue
Management
Revenue Management
and Dynamic Pricing
Airline Inventory
Airline Inventory
Airline Inventory
Fare Product Mix
Fare Product Mix
Fare Product Mix
Revenue Management
and Dynamic Pricing
The Real-Time Transaction
Processor
The Revenue Management
System
Analysts
The Revenue Management
Process
Real-Time Transaction
Processor
Real-Time Transaction
Processor
Real-Time Transaction
Processor
Real-Time Transaction
Processor
Extract, Transform, and Load
Transaction Data
Extract, Transform, and Load
Transaction Data
Demand Models and
Forecasting
Demand Models and
Forecasting
Optimization
Decision Support
Revenue Management
and Dynamic Pricing
Two Non-Traditional
Applications
New Areas
Revenue Management
and Dynamic Pricing
Further Reading
Special Interest Groups
Revenue Management
and Dynamic Pricing:
Part II
Outline
Revenue Management
and Dynamic Pricing
Leg/Class Control
A Mathematical Model
A Mathematical Model
A Mathematical Model
A Mathematical Model
An Alternative Model
A Leg DP Formulation
Slide 53
A Leg DP Formulation
A Leg DP Formulation
Slide 56
Slide 57
Slide 58
Bid Price Control
Bid Price Control
Revenue Management
and Dynamic Pricing
Network Control
Inventory Control Mechanism
Example:
Limitations of
Leg/Class Control
Example:
Limitations of
Leg/Class Control
Example:
Limitations of
Leg/Class Control
Limitations of Leg/Class
Control
Alternative Control
Mechanisms
Virtual Nesting
Virtual Nesting
Virtual Nesting
Bid Price Control
Bid Price Control
Bid Price Control
Virtual Nesting
Bid Price Control
Revenue Management
and Dynamic Pricing
A Model
Demand Allocation Model
Leg/Class Control
Virtual Nesting
Bid Price Control
Network Algorithms:
Leg/Class
Control
Network Algorithms:
Virtual
Nesting Control
Network Algorithms:
Bid
Price Control
Resource Allocation Model
Resource Allocation Model
Level of Detail Problem
Level of Detail Problem
Revenue Management
and Dynamic Pricing
A Network DP Formulation
A Network DP Formulation
A Network DP Formulation
An Alternative View of DP
An Alternative View of DP
A Network DP Formulation
Revenue Management
and Dynamic Pricing