An approach to adaptive robust revenue management with continuous demand management in a COVID-19 era

Abstract

The novel coronavirus pandemic has had a seismic impact on the travel industry. With a steep drop in customer demand and the inability of airlines to forecast demand for flights with any degree of accuracy, this paper proposes an alternative approach to revenue management that monitors key revenue management metrics and take corrective action with demand and supply levers to make the revenue plan happen. In a COVID-19 era, in the absence of reliable demand forecasts, this operationally driven robust revenue management approach is a viable alternative to manage seat inventory than traditional methods.