Special Issue Papers: Forecasting and control of passenger bookings

TLDR: In this paper, the authors describe the early work on applying mathematical models to the development of revenue management in the airline industry and describe methods of passenger forecasting and revenue control, and introduce the idea of maximizing the revenue received on a particular flight, rather than maximising the number of passengers carried.

Abstract: This paper won the 2004 Revenue Management and Pricing Section Historical Prize awarded by INFORMS. Written in 1972, it describes the early work on applying mathematical models to the development of revenue management in the airline industry. It describes methods of passenger forecasting and revenue control — and introduces the idea of maximising the revenue received on a particular flight, rather than maximising the number of passengers carried. It is considered a seminal work in the field of revenue management, and establishes the foundations for many of the yield control models which have been subsequently developed. It was presented at the 12th AGIFORS Symposium in October 1972.