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Airline Yield Optimization
Involves Demand Forecasting, Pricing, and Seat Inventory Control:
  • Forecast for day part, sector, leg, class
  • EMSR heuristics & dynamic probabilistic decision model to determine seat allocation thresholds
  • Unconstraining demand – EM algorithm
  • Dynamic pricing models to determine optimal ticket pricing. Where demand is a function of vector of prices and the time at which these prices are offered