Track: Senior Capstone Design Competition / FYP Competition
Abstract
A novel EMSR (Expected Marginal Seat Revenue) concept is proposed by considering the future value of airfares and seat inventory allocation. The seat allocation resulting from the extensions of EMSRa & EMSRb will be examined in terms of the protection limit, booking limit, and the possible maximum revenues. In our findings, we suggest that the decision makers should recognize the actual value of the revenues from the lower fare classes in the early stage of a flight booking period and adjust the seat inventory allocation in real practice.