Demand Management Based on Model Predictive Control Techniques

Table 1

Demand management for airlines and hotels: literature review.

Author	Sector application	Methodology	Contribution
Abdel Aziz et al. [4]	Hotels	Research article (case studies)	Application to address the problem of room pricing in hotels. Optimization techniques are present. Multiclass scheme similar to the one implemented in airlines is studied
de Boer [5]	Airlines	Research article (theoretical)	Determination of a revenue management policy in response to the realization of the demand. This is done by matching supply and demand for seats
Hung and Chen [6]	Airlines	Research article (case studies)	This study develops and tests two heuristics approaches: the dynamic seat rationing and the expected revenue gap to help the airline make a fulfillment or rejection decision when a customer arrives
Gosavi et al. [7]	Airlines	Research article (simulation based optimization)	Application of simulation based optimization for seat allocation in airlines. The model considers real life assumption such as cancelations and overbooking
Graf and Kimms [8]	Airlines	Research article (case studies)	The optimal transfer prices are determined by a negotiation process. Option-based capacity control process results combined with transfer price optimization are compared with a first come first served approach
Kimms and Müller-Bungart [9]	Airlines	Research article (simulation based case study)	Application of heuristics and optimal networks in revenue management. Assuming stochastic demand
Netessine and Shumsky [10]	Airlines	Survey	Analysis of fundamental concepts and trade-offs of yield management to describe the parallels between yield management and inventory management
Rannou and Melli [11]	Hotels	Research article (case study)	Analysis and application of revenue management in hospitality industry. The idea is to achieve a performance measure for the return of investment
Walczak and Brumelle [12]	Airlines	Research article (theoretical)	Problem formulation of semi-Markov model for dynamic pricing and revenue management in airline industry, assuming continuous demand