airline revenue management

With the increasing interest in decision support systems and the continuous advance of computer science, revenue management is a discipline which has received a great deal of interest in recent years. Although revenue management has seen many new applications throughout the years, the main focus of research continues to be the airline industry. Ever since Littlewood (1972) first proposed a solution method for the airline revenue management problem, a variety of solution methods have been introduced. In this paper we will give an overview of the solution methods presented throughout the literature.revenue management;seat inventory control;OR techniques;mathematical programming

Determining the direct mailing frequency with dynamic stochastic programming

Both in business to business and in consumer markets direct mailings are an important means of communication with individual customers. This paper studies the mailing frequency problem that addresses the issue of how often to send a mailing to an individual customer in order to establish a profitable long-term relationship rather than targeting profitable groups of customers at every new mailing instance. The mailing frequency is optimized using long-term objectives but restricts the decisions to the number of mailings to send to the individual over consecutive finite planning periods. A stochastic dynamic programming model that is formulated for this problem is easy to solved for many applications in direct mailing. A particular implementation of the model will provide the direct mailer with controls to stimulate desired response behavior of their customers. The model is calibrated for a large non-profit organization and shows that very large improvements can be achieved by approaching the mailing strategy with the mailing frequency problem, both in the number of mailing to send and in the profits resulting from the responses.Direct marketing;Stochastic dynamic programming

Evaluating Direct Marketing Campaigns: recent findings and future research topics

This paper contains a survey of the recent literature on the evaluation of direct marketing campaigns. We give an outline of the various stages included in such a campaign. Next, we review the statistical methods most frequently used and we review the general findings from using these methods.direct marketing;target selection;evaluation;quantitative models

Direct Mailing Decisions for a Dutch Fundraiser

Direct marketing firms want to transfer their message as efficientlyas possible in order to obtain a profitable long-term relationshipwith individual customers. Much attention has been paid to addressselection of existing customers and on identifying new profitableprospects. Less attention has been paid to the optimal frequency ofthe contacts with customers. We provide a decision support system thathelps the direct mailer to determine mailing frequency for activecustomers. The system observes the mailing pattern of these customersin terms of the well known R(ecency), F(requency) and M(onetary)variables. The underlying model is based on an optimization model forthe frequency of direct mailings. The system provides the directmailer with tools to define preferred response behavior and advisesthe direct mailer on the mailing strategy that will steer thecustomers towards this preferred response behavior.decision support system;direct marketing;Markov decision process

Stochastic programming for multiple-leg network revenue management

Airline seat inventory control is a very profitable tool in the airline industry. Mathematical programming models provide booking limits or bid-prices for all itineraries and fare classes based on demand forecasts. But the actual revenue generated in the booking process fails to meet expectations. Simple deterministic models based on expected demand generate better revenue than more advanced probabilistic models. Recently suggested models put even more effort into demand forecasting. We will show that the dynamic booking process rather than the demand forecasts needs to be addressed. In particular the nesting strategies applied in booking control will counter-effect the profitability of advanced estimation of booking limits and bid-prices.simulation;revenue management;mathematical programming

Media planning by optimizing contact frequencies

In this paper we study a model to estimate the probability that a target group of an advertising campaign is reached by a commercial message a given number of times. This contact frequency distribution is known to be computationally difficult to calculate because of dependence between the viewing probabilities of advertisements. Our model calculates good estimates of contact frequencies in a very short time based on data that is often available. A media planning model that optimizes effective reach as a function of contact frequencies demonstrates the usefulness of the model. Several local search procedures such as taboo search, simulated annealing and genetic algorithms are applied to find a good media schedule. The results show that local search methods are flexible, fast and accurate in finding media schedules for media planning models based on contact frequencies. The contact frequency model is a potentially useful new tool for media planners.optimization;contact frequency;effective reach;media planning

Models and techniques for hotel revenue management using a rolling horizon.

This paper studies decision rules for accepting reservations for stays in a hotel based on deterministic and stochastic mathematical programming techniques. Booking control strategies are constructed that include ideas for nesting, booking limits and bid prices. We allow for multiple day stays. Instead of optimizing a decision period consisting of a fixed set of target booking days, we simultaneously optimize the complete range of target booking dates that are open for booking at the moment of optimization. This yields a rolling horizon of overlapping decision periods, which will conveniently capture the effects of overlapping stays.Revenue management;Mathematical programming;Yield management

Models and Techniques for Hotel Revenue Management Using a Roling Horizon

AbstractThis paper studies decision rules for accepting reservations for stays in a hotel based on deterministic and stochastic mathematical programming techniques. Booking control strategies are constructed that include ideas for nesting, booking limits and bid prices. We allow for multiple day stays. Instead of optimizing a decision period consisting of a fixed set of target booking days, we simultaneously optimize the complete range of target booking dates that are open for booking at the moment of optimization. This yields a rolling horizon of overlapping decision periods, which will conveniently capture the effects of overlapping stays.mathematical programming;Revenue Management;yield management

Through the clouds : urban analytics for smart cities

Data has been collected since mankind, but in the recent years the technical innovations enable us to collect exponentially growing amounts of data through the use of sensors, smart devices and other sources. In her lecture Nanda will explore the role of Big Data in urban environments. She will give an introduction to the world of Big Data and Smart Cities, and an assessment of the role that data analytics plays in the current state of the digital transformation in our cities. Examples are given in the field of energy and mobility

Age and environment affect constitutive immune function in Red Knots (Calidris canutus)

We studied subspecies, age and environmental effects on constitutive immune function (natural antibody and complement titres, haptoglobin activity and leukocyte concentrations) in Red Knots (Calidris canutus). We compared C. c. islandica and C. c. canutus in the Wadden Sea and found no difference in immune function between subspecies. However, C. c. canutus on their wintering grounds in Banc d’Arguin had higher natural antibody and lower complement levels than C. c. canutus or C. c. islandica in the Wadden Sea. This suggests that immune function is determined more by the surrounding environment than by subspecies. We also compared age classes in the Wadden Sea and found that first year birds had significantly lower natural antibody levels than adults, but that second year birds no longer differed from adults. Finally, we examined the interaction of age and environment in Banc d’Arguin. We found that first year birds (but not adults) in a low quality habitat had higher leukocyte concentrations than first year birds or adults in a high quality habitat. Differences in available resources and defence needs between environments, and differences among individuals differentially distributed between sites, are likely important contributors to the variation in immune function we report. Future studies, which examine these factors on wild birds, will be important for our understanding of how animals function in their natural environment.