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A cabin capacity allocation model for revenue management in the cruise industry
Publikationstyp
Journal Article
Date Issued
2019-12-01
Sprache
English
Author(s)
TORE-URI
Volume
18
Issue
6
Start Page
441
End Page
450
Citation
Journal of Revenue and Pricing Management 6 (18): 441-450 (2019-12-01)
Publisher DOI
Scopus ID
The cruise industry is a profitable field for the application of revenue management methods. Existing model formulations for booking limit determination usually assume that the different elements of booking requests are independent. In this work, it is shown that this approach can lead to non-feasible capacity allocations, which consequently are neither optimal nor applicable in practical planning situations. Therefore, a new improved integer linear model formulation is developed here which by explicitly assigning booking requests to cabins derives a feasible and revenue-maximizing capacity allocation. The model and its results are illustrated with a real-world sized case study.
Subjects
Capacity allocation
Cruise industry
Revenue management
Simulation