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Shanghai-based China Eastern Airlines has recently replaced its previous P5 revenue management system with an origin-destination (OD) revenue management system. The new system is first applied to the carrier’s air routes between Shanghai Pudong and Chicago to achieve dynamic decision-making. The OD revenue management takes into account passengers’ itineraries from the origin to the destination. With the help of this system, China Eastern can distribute its available seats dynamically during the whole flight by analyzing, predicting and optimizing the best strategy at different flight segments to maximize the company’s total revenue throughout its entire air route network. The implementation of this OD revenue management system shows that the airline is taking steps to improve its revenue management and optimize its revenue model, going beyond maximizing the revenue of a single flight segment to that of its entire air route network. (Translated by Jerry) |
