Modeling of multi train seat inventory control based on revenue management
As ticket income is the main part of railway passenger transportation revenue, rail companies have to deal with seat inventory control problem to maximize the overall expected revenues. This paper develops a multi train seat inventory control model (MSIC) based on the Revenue Management (also known as Yield Management) theory. This model introduces Origin Destination (OD) inventory as a constraint by assigning the number of seats to each train and OD to control the seat inventory capacity among different trains. Comparing with the existing models, this model makes it possible to maximize the overall revenue of a whole train line plan rather than a single train, which is more suitable for the practice of railway operation. Meanwhile, the model can also provide theory and tool for marketing staff monitoring and adjusting ticket allocation to improve ticket sales. A case study on a partial train line plan of Beijing Guangzhou High Speed Railway (HSR) proves that the MSIC model can increase the overall revenue by optimizing passenger distribution on different trains.
2016 International Conference on Logistics, Informatics and Service Sciences (LISS)