Revenue Of Alliance Research Articles

Multi-agent Cooperative Operation Model and Profit Allocation of PV-based Microgrid

The new electric power reform scheme allows the users of distributed generation or microgrid systems to participate in electricity trade, which is beneficial to the improvement of economic benefits of microgrid. Generally, microgrid is composed of several economic members, including photovoltaic operators, storage operators, users and so on. Based on the analysis on the impetus of operation consortia, market transaction mode and their cooperative game model among the economic members in microgrid are proposed. The time-sharing scheduling model of PV-based microgrid decides the operation status of members to maximize the benefits of the whole alliance, and the revenue of each member in the alliance is allocated by the Shapley Value method. As can be seen, the revenue of photovoltaic operators, storage operators and users are increased in cooperation mode with the increase of the considerable revenue of alliance, and achieve the parties’ mutual balance. Besides, the computational complexity is relatively low, which contributes to the large-scale development of PV-based microgrid.

Alliance revenue management in practice: Impacts of bid price sharing and dynamic valuation

The control of shared seat inventory on codeshare flights operated by partner airlines in an alliance produces complexities for revenue management (RM). Typically, the carriers have limited information about their partner’s codeshare flight legs and must make RM seat availability decisions based on the information available with respect to their own network. Such decisions can be sub-optimal in terms of revenues for the carrier, for the partner, as well as the combined alliance. This article describes the practical RM challenges related to alliance RM and examines information exchange schemes designed to increase revenues for the combined alliance. The sharing of bid prices or network displacement costs between partners allows the carriers to determine seat availability based on the opportunity costs and revenue benefits of accepting codeshare passengers on connecting itineraries involving flights operated by both partners. These partner bid prices can be further used as inputs to the RM optimizer. We call this technique ‘dynamic valuation’ of codeshare paths. We use simulations to demonstrate the revenue benefits of both bid price sharing (BPS) for seat availability and dynamic valuation for RM optimization, when applied in typical network RM methods: displacement adjusted virtual nesting and probabilistic network bid price control. Our simulations suggest that BPS and dynamic valuation can lead to total combined system revenue gains for an alliance partnership of two airlines in the range of 0.30 per cent over other techniques. This can translate into total incremental revenue gains in the range of US$50–$100 million per year for larger airlines in alliance partnerships.

Transfer price optimization for option-based airline alliance revenue management

Abstract Recently, an option-based capacity control process for the case of airline alliance revenue management with two partner airlines providing flight tickets on a single flight leg has been proposed. This previous work describes the determination of the booking limits as control variables for the capacity control by means of real options as well as simulation models which consider the option-based process to evaluate the booking process of the partner airlines within the strategic alliance. The booking limits are improved with simulation-based optimization in an iterative process. However, the transfer prices are assumed to be given. In this paper, the optimal transfer prices will be determined by a negotiation process. The results of the option-based capacity control process combined with transfer price optimization will be compared with the results of a first-come-first-served approach, ex post optimal solutions, a blocked seat allotment procedure and a random approach.

Practice Papers: Alliance revenue management

Revenue management poses some unique challenges for members of an airline alliance who want to synchronise decision-making to maximise revenues across the alliance network. This paper discusses key challenges in alliance revenue management and its impacts on pricing and capacity planning. Key steps that should be taken into consideration to maximise alliance network revenues are outlined.