Revenue management of callable products

• 成果类型: Article
• 署名作者: Gallego, Guillermo; Kou, S. G.; Phillips, Robert
• 署名单位: Columbia University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.1070.0782
• 发表日期: 2008
• 页码: 550-564
• 关键词: revenue management; product design; overbooking; capacity allocation

摘要

A callable product is a unit of capacity sold to self-selected low-fare customers who willingly grant the capacity provider the option to call the capacity at a prespecified recall price. We analyze callable products in a finite-capacity setting with two fare classes where low-fare customers book first, and show that callable products provide a riskless source of additional revenue to the capacity provider. An optimal recall price and an optimal discount-fare booking limit for the two-period problem are obtained. Numerical examples show the benefits from offering callable products can be significant, especially when high-fare demand uncertainty is large. Extensions to multifare structures, network models, overbooking, and to other industries are discussed.