{"id":7250,"date":"2018-08-29T01:49:20","date_gmt":"2018-08-29T01:49:20","guid":{"rendered":"https:\/\/pros.com\/learn\/white-papers\/dynamic-capacity-sharing-models-in-airline-revenue-management\/"},"modified":"2026-02-13T19:12:42","modified_gmt":"2026-02-13T19:12:42","slug":"dynamic-capacity-sharing-models-in-airline-revenue-management","status":"publish","type":"post","link":"https:\/\/pros.com\/learn\/white-papers\/dynamic-capacity-sharing-models-in-airline-revenue-management\/","title":{"rendered":"Dynamic Capacity Sharing Models in Airline Revenue Management"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><div id=\"pdf-container\" data-pdf=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/Dynamic-Capacity-Sharing-Models-in-Airline-Revenue-Management.pdf\"><\/div>\n<p><strong>We developed methodologies to dynamically determine prices for capacities in different resources. <\/strong><\/p>\n<p>More specifically, for each combination of remaining time available in the booking horizon and remaining seat inventories in all the compartments, we calculated the opportunity cost (bid price) to accommodate one more booking in each of the compartments, based on information such as expected total demand for each resource, allowable prices, and probabilities of having a customer who purchases at each of the allowable price points for each resource. By jointly considering the remaining capacities in all resources, we reduced revenue loss that results from the conventional approaches when too many economy updates are accepted and also created additional revenue by upgrading some portion of economy passengers into business compartment when the conventional approaches would have rejected them.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We developed methodologies to dynamically determine prices for capacities in different resources. More specifically, for each combination of remaining time available in the booking horizon and remaining seat inventories in all the compartments, we calculated the opportunity cost (bid price) to accommodate one more booking in each of the compartments, based on information such as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7249,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20],"tags":[60,122,46,166,123],"class_list":["post-7250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-white-papers","tag-industry-airlines","tag-label-white-paper","tag-language-english","tag-topic-airline-revenue-offer-optimization","tag-type-white-paper","post-type-docs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dynamic Capacity Sharing Models in Airline Revenue Management | PROS<\/title>\n<meta name=\"description\" content=\"Explore dynamic capacity sharing models that help airlines optimize seat inventory, improve bid price accuracy, and maximize revenue through advanced airline retailing and offer management strategies.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pros.com\/learn\/white-papers\/dynamic-capacity-sharing-models-in-airline-revenue-management\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dynamic Capacity Sharing Models in Airline Revenue Management | PROS\" \/>\n<meta property=\"og:description\" content=\"Explore dynamic capacity sharing models that help airlines optimize seat inventory, improve bid price accuracy, and maximize revenue through advanced airline 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content=\"PROS Inc.\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Dynamic Capacity Sharing Models in Airline Revenue Management | PROS","description":"Explore dynamic capacity sharing models that help airlines optimize seat inventory, improve bid price accuracy, and maximize revenue through advanced airline retailing and offer management strategies.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/pros.com\/learn\/white-papers\/dynamic-capacity-sharing-models-in-airline-revenue-management\/","og_locale":"en_US","og_type":"article","og_title":"Dynamic Capacity Sharing Models in Airline Revenue Management | PROS","og_description":"Explore dynamic capacity sharing models that help airlines optimize seat inventory, improve bid price accuracy, and maximize revenue 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