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Títol: Forecasting Air Travel Demand as the Initial Stage in a Revenue Management Process: Challenges in the Presence of Exogenous Factors

Estudiants que han llegit aquest projecte:


Departament: FIS

Títol: Forecasting Air Travel Demand as the Initial Stage in a Revenue Management Process: Challenges in the Presence of Exogenous Factors

Data inici oferta: 17-07-2023     Data finalització oferta: 17-03-2024

Estudis d'assignació del projecte:
Tipus: Individual
Lloc de realització: EETAC
Paraules clau:
Revenue management, optimisation, airline operations
Descripció del contingut i pla d'activitats:
Having in mind that airline industry is characterised by high capital and very small profit margins, the role of revenue management is crucial to sustain profit. Thus, the aim of the thesis is to explore the field of airline revenue management and its importance in optimizing profitability. It develops the optimization strategies employed by revenue management analysts, focusing on various aspects such as pricing strategies, demand forecasting, and capacity utilization to develop effective revenue management techniques for the airline industry.

-Investigate the current revenue management practices in the airline industry and identify key challenges and opportunities
-Analyze different dynamic pricing models and their impact on revenue generation
-Study optimization techniques considering various factors such as fares, seat availability, etc...
-Data analysis
Overview (resum en anglès):
The aviation industry has experienced substantial growth in a highly competitive environment, especially during recent years. One of the consequences that this scenario has caused is that, in order to remain competitive in the market, airlines have had to perform continuous innovations in their seat pricing strategies to optimise the profitability of their flights.

The concept of Revenue Management involves strategically making decisions during the sales process, with the primary objective of maximising the total revenue that can be obtained. One of the key aspects that plays a fundamental
role throughout this process lays on modelling future demand, as well as the various behaviours that potential customers may exhibit.

This project primarily focuses on two pillars: the categorization of the different types of demand in the sale of airline tickets depending on the behaviour of customers and the forecast of such demand in the short term. Additionally, the entire project has been carried out using real data obtained from historical bookings.

Throughout this work, various traditional methods of time series forecasting are studied and analysed and, with the obtained results, a validation process is conducted and a comparison of the performance of each of the forecasting
methods is carried out to ultimately choose the most appropriate method in each case. Finally, the obtained results are used to develop a final forecast of the demand for a specific flight in a certain date that allows to optimise revenue by means of an allocation of fare classes for different seats on the same flight after determining the availability of each fare class that should be offered throughout the entire sales process.

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