Decision support in online travel retailing

B. Venkateshwara Raoà and Barry C. Smith

Received (in modified form): 7th November, 2006


Study Group, Sabre Holdings, 3150 Sabre Drive, MD 8203 HDQ, Southlake, TX 76092, USA Tel: þ 1 682 605 1721; Send: þ one particular 682 605 7690; Email-based: beju. [email protected] com

W. Venkateshwara Rao is a Elderly Principal

in Research Group at Sabre Holdings. This individual

develops consumer behaviour, pricing, marketing, preparing, and deal evaluation types for Selling and Aircarrier Revenue Supervision. His

analysis interests are stochastic modelling

and non-linear optimisation. This individual publishes in

Operations Research and Industrial Engineering magazines. He likewise teaches in your free time at the Organization School of University of Texas by


Craig C. Jones is Chief Scientist and Senior

Vp for research at Sabre Holdings.

This individual developed most of the yield managing

techniques used throughout the airline industry

in addition to other industrial sectors. He is a fellow with the

Airline Band of the Foreign Federation of

Operational Exploration Societies (AGIFORS).


KEYWORDS: travel, selling, decision support,

e-commerce, operations research, pricing

Online travel around retailing can be an e-commerce success history.

Different price tag models are present to sell travelling products

in the web. These types of models contain online travel around

agencies, supplier websites, troubled inventory

websites, reverse craigslist and ebay, shopping robots,

search engines, and portals. On-line travel companies,

such as Expedia and Travelocity, are the many mature

business accounting for more than half of on-line

leisure travel sales. On-line travel companies acquire

seventy two

inventory via multiple flight companies, hotels, car rental

companies, cruiselines, and event organisers. That they

merchandise this inventory while standalone along with

packaged groups to online shoppers who have benefit

by a wide variety of goods across multiple

suppliers. In this paper, a conclusion support construction

for a web based travel agency is discussed. The

framework contains disaggregate demand estimation,

pricing and merchandise display, promoting, revenue

preparing, and package evaluation. The underlying

Operations Research versions is mentioned along with

challenges associated with data collection and

setup. The experts discuss the impact of

on the net travel retailing on provider yield supervision

systems. Decision support designs discussed can also be

applicable to online travel retailers besides online

travel and leisure agencies. The choice support structure

should act as an annotation to the Operations

Research possibilities in the rising field of online

travel retailing.

Log of Revenue and Charges Management (2006) 5,

72–80. doi: twelve. 1057/palgrave. rpm. 5160012


According to Forrester, on the net leisure travel around

sales in US are expected to increase to $63. 6bn

during 2005 and $111bn during 2009 (Harteveldt et 's., 2004a, b). These product sales happen through different types of online travel suppliers.

Table 1 contains a summary of websites together with a

description and examples for every single type. On the web

agencies account for more than half of online

travel and leisure sales in the major types of airline

Diary of Earnings and Pricing Management Vol. 5, you, 72–80 & 2006 Palgrave Macmillan Limited, 1476-6930 $30. 00

Rao and Johnson

Table 1: Different types of on-line travel stores




On-line agency

Sell off multiple types of travel around products of multiple suppliers. Different product types consist of air, lodge, car, cruise trip, and plans. Package is actually a bundle of two or more elements

involving air flow, hotel, car, cruise, and event seat tickets. Customer is usually shown a directory of products with different attributes along with price.

Sell own travel products and travel items of partners. Partner could possibly be a dealer of same product type (an airline partnering with another airline) or of a different item type (an...

References: Ben-Akiva, M. and Lerman, S. R. (1985) Discrete

Choice Analysis: Theory and Applications to Travel

Harteveldt, H. They would., Leaver, S i9000. and Yuen, E. H. (2004a)

‘Online leisure travel forecast 2004–2009: web

travel around continues it is skyward climb', Forrester Developments,

March twenty-two, 2004, Forrester Research Incorporation.

Harteveldt, L. H., Leaver, S. and Meyer, T. (2004b)

‘Trends 2005: travel and leisure websites — travel businesses

invest millions to boost site design and complex

bookings', Forrester Styles, November being unfaithful, 2004,

Hornick, S. (2004) ‘Fare play', Airline Business,

November 2005.

PhoCusWright. (2003) ‘Vacation deals: a consumer tracking and breakthrough study', Nov

2003, PhoCusWright Inc

Log of Income and Charges Management Vol. 5, one particular, 72–80 & 2006 Palgrave Macmillan Ltd, 1476-6930 $30. 00


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