Piedmont Airlines (A): Discount Seat Allocation

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Case

Reference no. UVA-QA-0339

Subject category: Case Method and Specialist Management Disciplines

Authors: Phillip E Pfeifer (Darden School of Business, University of Virginia)

Published by: Darden Business Publishing

Originally published in: 1985

Version: December 1993

Length: 12 pages

Data source: Field research

Topics: Decision theory; Diverse protagonist, female; Monte Carlo simulation; Probability; Diversity case; Management of service industries; Simulation; Diversity

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Abstract

The manager of the Revenue Enhancement Department of an airline has to decide the optimal number of seats to reserve for discount customers on a particular flight. Historical data are given, as well as probability distributions of demand for both full and discount fares, in order to help make the decision. See also the (B) case is (UVA-QA-0340).

Location:

Winston-Salem, NC

Industry:

Airline

Other setting(s):

1985