US 6,263,315 B1Granted

Revenue management system and method

AssigneePricing Research Corporation

InventorKalyan Talluri

Life of this patent

Estimating the term…

Loading patent…

Abstract

A revenue management software system supports decisions to accept or deny requests for resource capacity (seats, rooms, volume/weight, air time, etc.) using control logic that accesses multidimensional lookup tables of price values for each resource (flight leg, hotel day, etc.). Each dimension of each lookup table corresponds to a variable that affects the value for the resource. As an example where the resource is airline seating capacity for a given flight itinerary, a two-dimensional threshold value table is employed for each flight leg in the itinerary where the first dimension specifies the current time slot and the other dimension the current number of reservations accepted (reservation level) for the flight leg. A request for a seat on the flight is accepted if and only if its net revenue exceeds or equals the sum of the current table values (i.e. the table entries corresponding to the current time and current reservation level) for each requested flight leg.

Claims20

Dependent claims

A computer implemented method for managing allocation of a resource to be utilized for an event at a scheduled future time, said method comprising the steps of:

a) receiving a request for at least a first resource to be utilized during said event in a revenue management system computer;
b) accessing a multidimensional lookup table with said computer, said table including 1) an axis for each dimension defining a corresponding one of a plurality of variables that affects an acceptable threshold value for said resource, said variables at least including an available capacity for said resource and a plurality of future time-points between the current time and said scheduled future time and 2) a plurality of threshold value entries for said resource, one for each of a plurality of combinations of values for said variables;
c) determining a present value for each of said variables, including a time of the request for said resource;
d) retrieving a threshold value entry from said lookup table corresponding to a combination of said variables corresponding to the present value for each of said variables, including the time of the request for the resource;
e) comparing the selected threshold value entry to an expected net revenue value for said resource;
and
f) if the expected net revenue value is greater than or equal to the selected threshold value entry, generating an indication that the request for the resource will be accepted.

4 more elements

A system for managing allocation of a resource to be utilized for an event at a scheduled future time comprising;

a) a computer for processing requests for allocation of at least a first resource to be utilized during a period of booking for said event;
b) at least a first multidimensional lookup table interfaced to said computer, said table including 1) an axis for each dimension defining a corresponding one of a plurality of variables that affects an acceptable threshold value for said resource, said variables at least including a currently available capacity for said resource and a length of time remaining until said event is scheduled to occur;
and 2) a plurality of threshold value entries for said resource, one for each of a plurality of combinations of values for said variables;
and
c) means in said computer for:
1) receiving a request for said resource;
2) accessing said lookup table to retrieve a current acceptable threshold value for said resource based on a current combination of values for said variables;
3) comparing the retrieved threshold value fiom said lookup table to a net revenue value for said request;
and
4) generating an indication that the request will be accepted if the net revenue value for the resource is greater than or equal to the threshold value in the lookup table, and that the request will be rejected otherwise.

7 more elements

Dependencies are inferred from the claim text.

Facts

Application: 09/184,234Filed 2 Nov 1998
Granted: 17 Jul 2001
Term ends: Not estimatedThe source records don’t support an estimate.

Classification5 codes

G06Q 10/02
Administration; Management: reservations, e.g. for tickets, services or events
G06Q 10/025
Reservations, e.g. for tickets, services or events: coordination of plural reservations, e.g. plural trip segments, transportation combined with…
G06Q 10/0283
For seating or spaces in a venue: for travel seating
G06Q 10/0631
Operations research, analysis or management: resource planning, allocation, distributing or scheduling for enterprises or organisations