A Part-Refund Model for Airline Overbooking Problem

摘要

In this paper,a mathematical model about the optimal booking level problem in airline overbooking management is proposed.Firstly,the normal distribution is employed to approximate Poisson requests and binomial go-shows.By calculating the mean loss,a model to describe the relationship between booking level and flight revenue is established.Then,an equation is deduced to decide the optimal booking level.Finally,a numerical example is utilized to illustrate the proposed model and discuss the impact of refund rate on the optimal booking level and the mean loss.