Two-dimensional air cargo overbooking models under stochastic booking request level, show-up rate and booking request density

An extra-baggage service price setting with reference to cargo prices using multi-item newsvendor model

“…Kasilingam, (1997) for example, developed a one-dimensional cargo overbooking model under random aircraft capacity, formulated for both discrete and continuous probability distributions. Wannakrairot and Phumchusri, (2016) formulated air cargo overbooking in two dimensions (weight and volume) under uncertain overbooking and show -up rates, and booking orders density. Overbooking studies are crucial when the capacity is less than the accumulated demand.…”

A mixed wholesale-option-contract to fix the demand imbalance between substitutable air cargo routes: A cooperative game approach

“…He stated that the complexity of the cargo overbooking problem is derived from the volume and weight dimensions. Hence to ensure better overbooking estimation, the two cargo aspects (weight and volume) should be considered (Luo et al, 2009;Wannakrairot & Phumchusri, 2016). Popescu et al (2006) customized passengers' overbooking calculation to estimate the optimal cargo overbooking.…”

Optimal overbooking decision for a “Hotel + OTA” dual‐channel supply chain

“…Sierag et al (2015) further incorporated customer choice behavior into the overbooking model with stochastic cancelations, and used Markov decision process to model the problem. Wannakrairot and Phumchusri (2016) proposed a two-dimensional air cargo overbooking model to determine the optimal overbooking level when booking request level, show-up rate and booking request density are stochastic. Some researchers considered the overbooking problem for service providers by involving the multipleclass services that can be substituted for one another.…”

“…Overbooking is a technique of selling goods or services in excess of the available capacity for the same period to hedge against the capacity idleness caused by cancellations and no shows (Guo et al., ; Wannakrairot and Phumchusri, ). It is a revenue management strategy that helps to maximize the total capacity to 100% occupancy and increase the expected revenue, and is perceived as a low‐risk and high‐reward technique by the majority of hospitality and tourism managers (Pizem, ).…”