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Journal of Revenue and Pricing Management

, Volume 18, Issue 6, pp 441–450 | Cite as

A cabin capacity allocation model for revenue management in the cruise industry

  • Daniel SturmEmail author
  • Kathrin Fischer
Research Article
  • 24 Downloads

Abstract

The cruise industry is a profitable field for the application of revenue management methods. Existing model formulations for booking limit determination usually assume that the different elements of booking requests are independent. In this work, it is shown that this approach can lead to non-feasible capacity allocations, which consequently are neither optimal nor applicable in practical planning situations. Therefore, a new improved integer linear model formulation is developed here which by explicitly assigning booking requests to cabins derives a feasible and revenue-maximizing capacity allocation. The model and its results are illustrated with a real-world sized case study.

Keywords

Revenue management Capacity allocation Cruise industry Simulation 

Notes

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Copyright information

© Springer Nature Limited 2019

Authors and Affiliations

  1. 1.Institute for Operations Research and Information SystemsHamburg University of TechnologyHamburgGermany

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