Revenue management system and method

• US 6,263,315 B1
• Filed: 11/02/1998
• Issued: 07/17/2001
• Est. Priority Date: 11/02/1998
• Status: Expired due to Fees

• Current Assignee: Pricing Research Corporation
• Original Assignee: Pricing Research Corporation
• Inventors: Talluri, Kalyan
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Nguyen, Cuong H.
• Application Number:
  US09/184,234
• Time in Patent Office: 988 Days
• Field of Search: G06/F 1.760, G06/F 1.526, 705/28, 705/6, 705/8, 705/5, 705/10, 340/5, 340/6, 340/8, 340/10, 340/20, 340/26, 340/28, 340/825.28, 703/6, 707/1, 709/100
• US Class Current: 705/7.12
• CPC Class Codes: G06Q 10/02 Reservations, e.g. for tickets, services or events
• CPC Class Codes: G06Q 10/025 Coordination of plural reservations, e.g. plural trip segments, transportation combined with accommodation
• CPC Class Codes: G06Q 10/0631 Resource planning, allocation, distributing or scheduling for enterprises or organisations

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.

Claims

1. 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.

2. The method of claim 1, wherein said step of receiving a request further comprises receiving a request for a plurality of resources;

said step of accessing further comprises accessing a plurality of said lookup tables, one for each of said resources;

said step of comparing further comprises comparing a sum of the threshold value entries for each of said resources to a combined net revenue value for the plurality of the resources; and

, said step of generating further comprises generating an indication that the request for the resources will be accepted if the net revenue value is greater than or equal to the sum of the selected threshold value entries.

3. The method of claim 2, wherein the step of generating an indication that the request for the resources will be accepted if the revenue value is greater than or equal to the sum of the selected threshold value entries further comprises the steps of:

1) if the revenue value is greater than or equal to the sum of the selected threshold value entries, then;

i) determining that a request for said resources will be accepted at the revenue value for the current combination of values for said variables by incrementing a count for said number of acceptable requests by one unit;

ii) adjusting the current values of said variables as necessary to accommodate the reduction of available capacity of each of said resources by one unit; and

iii) returning to step c) for the adjusted current values of said variables to determine whether another request for said resources will be accepted at the revenue value;

2) if the revenue value is less than the sum of the threshold value entries in said lookup tables corresponding to the current combination of values for said variables, then outputting the value of said count as the total number of requests that will be presently accepted for said resources at said revenue value.

4. The method of claim 1, wherein the step of generating an indication that the request for the resource will be accepted if the revenue value is greater than or equal to the selected threshold value ently further comprises the steps of:

1) if the revenue value is greater than or equal to the selected threshold value entry, then;

i) determining that a request for said resource will be accepted at the revenue value for the current combination of values for said variables by incrementing a count for said number of acceptable requests by one unit;

ii) adjusting the current values of said variables as necessary to accommodate the reduction of available capacity of said resource by one unit; and

iii) returning to step c) for the adjusted current values of said variables to determine whether another request for said resource will be accepted at the revenue value;

2) if the revenue value is less than the threshold value ently in said lookup table corresponding to the current combination of values for said variables, then outputting the value of said count as the total number of requests that will be presently accepted for said resource at said revenue value.

5. The method of claim 1, wherein said event comprises a trip to a selected destination, and said resource comprises seats on means of transportation for said trip , and said variables comprise remaining available seat capacity and remaining time until said trip is scheduled to commence.

6. The method of claim 1, wherein said event comprises a trip to a selected destination, and said resource comprises cargo space on a means of transportation for said trip, and said variables comprise remaining available cargo weight, remaining available cargo volume and time remaining until said trip is scheduled to commence.

7. The method of claim 2, wherein said event comprises a trip to a selected destination, and each of said resources comprises seats on a means of transportation for one of a plurality of legs of said trip, and said variables comprise remaining available seating capacity and remaining time until said trip is scheduled to commence.

8. The method of claim 2, wherein said event comprises a trip to a selected destination, and each of said resources comprises cargo space on a means of transportation for one of a plurality of legs of said trip, and said variables comprise remaining available cargo weight, remaining available cargo volume and time remaining until said trip is scheduled to commence.

9. The method of claim 1, wherein said resource comprises advertising time slots and said variables comprise remaining available time-slots and the time remaining until said advertising is scheduled to be broadcast.

10. The method of claim 2, wherein said resources complise advertising time slots for one of a plurality of days and said variables comprise remaining available time-slots and the time remaining until said advertising is scheduled to be broadcast.

11. The method of claim 1, wherein said resource comprises tickets to facilities for said event, and said variables comprise time remaining until the scheduled event, and the number of seats remaining in each of one or more classes for the event.

12. The method of claim 2, wherein said resources comprise tickets to facilities for a plurality of seats for a plurality of scheduled events, and said variables comprise time remaining until the scheduled events, and the number of seats remaining in each of one or more classes for the events.

13. The method of claim 1, wherein said threshold values in said lookup table represent the minimum price that will be accepted for said resource, said price varying as a function of said plurality of variables defining said dimensions of said lookup table.

14. The method of claim 2, wherein said threshold values in said lookup tables represent the minimum prices that will be accepted for each of said resources, said prices varying as a function of said plurality of variables defining said dimensions of said lookup tables.

15. 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.

16. The system of claim 15, wherein said computer processes requests for allocation of a plurality of resources, and said system further comprises a plurality of said lookup tables interfaced to said computer, each said table assigned to a corresponding one of said resources and 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 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

said means in said computer for receiving, accessing, comparing and generating further comprises means for;

1) receiving a request for said resources;

2) accessing said lookup tables to retrieve current acceptable threshold values for each of said resources based on current combinations of values for said variables;

3) comparing a sum of the retrieved threshold values from said lookup tables 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 sum of the threshold values in the lookup tables, and that the request will be rejected otherwise.

17. The system of claim 16, wherein said means in said computer for receiving, accessing, comparing and generating further comprises means for determining a total number of requests for said resources that will be accepted at said net revenue value.

18. The system of claim 15, wherein said means in said computer for receiving, accessing, comparing and generating further comprises means for determining a total number of requests for said resource that will be accepted at said net revenue value.

19. The system of claim 15, wherein the threshold values in said lookup table represent minimum acceptable prices for said resource as a function of said variables, and said variables are selected fiom the group comprising remaining capacity available, remaining time until said event is scheduled to occur, remaining volume available and remaining weight available for said resource.

20. The system of claim 16, wherein the threshold values in said lookup tables represent minimum acceptable prices for said resources as a function of said variables, and said variables are selected from the group comprising remaining capacity available, remaining time until said event is scheduled to occur, remaining volume available and remaining weight available for said resources.