In this paper we introduce robust versions of the classical static and dynamic single leg seat allocation models as analyzed by Wollmer, and Lautenbacher and Stidham, respectively. These robust models take into account the inaccurate estimates of the underlying probability distributions. As observed by simulation experiments it turns out that for these robust versions the variability compared to their classical counter parts is considerably reduced with a negligible decrease of average revenue.

Airline Revenue Management, Dynamic Models, Robust Optimization, Single-Leg Problems, Static Models
Optimization Techniques; Programming Models; Dynamic Analysis (jel C61), Air Transportation (jel L93), Business Administration and Business Economics; Marketing; Accounting (jel M), Production Management (jel M11), Transportation Systems (jel R4)
Erasmus Research Institute of Management
hdl.handle.net/1765/7808
ERIM Report Series Research in Management
ERIM report series research in management Erasmus Research Institute of Management
Erasmus Research Institute of Management

Birbil, S.I, Frenk, J.B.G, Gromicho, J.A.S, & Zhang, S. (2006). An Integrated Approach to Single-Leg Airline Revenue Management: The Role of Robust Optimization (No. ERS-2006-023-LIS). ERIM report series research in management Erasmus Research Institute of Management. Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/7808