Time-Dependent Pricing for High-Speed Railway in China Based on Revenue Management

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal

3 Scopus Citations
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Author(s)

  • Jin Qin
  • Yijia Zeng
  • Xia Yang
  • Xuanke Wu
  • Wenxuan Qu

Related Research Unit(s)

Detail(s)

Original languageEnglish
Article number4272
Journal / PublicationSustainability (Switzerland)
Volume11
Issue number16
Online published7 Aug 2019
Publication statusPublished - Aug 2019

Link(s)

Abstract

High-speed railway (HSR) is recognized as a green transportation mode with lower energy consumption and less pollution emission than other transportation. At present, China has the largest HSR network globally, but the maximum revenue of railway transportation corporations has not been realized. In order to make HSR achieve a favorable position within the fierce competition in the market, increase corporate revenue, and achieve the sustainable development of HSR and railway corporations, we introduce the concept of revenue management in HSR operations and propose an innovative model to optimize the price and seat allocation for HSR simultaneously. In the study, we formulate the optimization problem as a mixed-integer nonlinear programming (MINLP) model, which appropriately captures passengers' choice behavior. To reduce the computational complexity, we further transform the proposed MINLP model into an equivalent model. Finally, the effectiveness of both the proposed model and solution algorithm are tested and validated by numerical experiments. The research results show that the model can flexibly adjust the price and seat allocation of the corresponding ticketing period according to the passenger demand, and increase the total expected revenue by 5.92% without increasing the capacity.

Research Area(s)

  • Elastic demand, HSR, Railway pricing, Railway revenue management, Sustainable development of HSR

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

Time-Dependent Pricing for High-Speed Railway in China Based on Revenue Management. / Qin, Jin; Zeng, Yijia; Yang, Xia; He, Yuxin; Wu, Xuanke; Qu, Wenxuan.

In: Sustainability (Switzerland), Vol. 11, No. 16, 4272, 08.2019.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal

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