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Date Demand for Full-Fare Tickets (# seats) 3/5/2006 106 3/6/2006 69 3/7/2006 98 3/8/2006 80 3/9/2006 85 3/10/2006 104 3/11/2006 65 3/12/2006 99 3/13/2006 62

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Date Demand for Full-Fare Tickets (# seats)
3/5/2006 106
3/6/2006 69
3/7/2006 98
3/8/2006 80
3/9/2006 85
3/10/2006 104
3/11/2006 65
3/12/2006 99
3/13/2006 62
3/14/2006 68
3/15/2006 69
3/16/2006 70
3/17/2006 119
3/18/2006 121
3/19/2006 77
3/20/2006 69
3/21/2006 55
3/22/2006 78
3/23/2006 101
3/24/2006 120
3/25/2006 102
3/26/2006 62
3/27/2006 57
3/28/2006 69
3/29/2006 82
3/30/2006 86
3/31/2006 106
4/1/2006 120
4/2/2006 68
4/3/2006 57
4/4/2006 76
4/5/2006 61
4/6/2006 57
4/7/2006 58
4/8/2006 49
4/9/2006 124
4/10/2006 61
4/11/2006 54
4/12/2006 64
4/13/2006 71
4/14/2006 147
4/15/2006 148
4/16/2006 96
4/17/2006 76
4/18/2006 78
4/19/2006 56
4/20/2006 56
4/21/2006 83
4/22/2006 62
4/23/2006 84
4/24/2006 40
4/25/2006 42
4/26/2006 71
4/27/2006 45
4/28/2006 73
4/29/2006 73
4/30/2006 121
5/1/2006 39
5/2/2006 52
5/3/2006 34
5/4/2006 56
5/5/2006 59
5/6/2006 75
5/7/2006 73
5/8/2006 48
5/9/2006 43
5/10/2006 57
5/11/2006 42
5/12/2006 45
5/13/2006 59
5/14/2006 65
5/15/2006 61
5/16/2006 31
5/17/2006 54
5/18/2006 60
5/19/2006 57
5/20/2006 73
5/21/2006 48
5/22/2006 52
5/23/2006 37
5/24/2006 43
5/25/2006 37
5/26/2006 97
5/27/2006 82
5/28/2006 51
5/29/2006 54
5/30/2006 34
5/31/2006 24
6/1/2006 42
6/2/2006 52
6/3/2006 79
6/4/2006 28
6/5/2006 44
6/6/2006 30
6/7/2006 21
6/8/2006 41
6/9/2006 88
6/10/2006 65
6/11/2006 43
6/12/2006 45
6/13/2006 18
6/14/2006 34
6/15/2006 49
6/16/2006 39
6/17/2006 72
6/18/2006 69
6/19/2006 31
6/20/2006 24
6/21/2006 35
6/22/2006 47
6/23/2006 66
6/24/2006 72
6/25/2006 45
6/26/2006 31
6/27/2006 39
6/28/2006 40
6/29/2006 22
6/30/2006 88
7/1/2006 72
7/2/2006 73
7/3/2006 56
7/4/2006 39
7/5/2006 52
7/6/2006 35
7/7/2006 65
7/8/2006 54
7/9/2006 55
7/10/2006 43
7/11/2006 41
7/12/2006 31
7/13/2006 34
7/14/2006 54
7/15/2006 74
7/16/2006 67
7/17/2006 33
7/18/2006 45
7/19/2006 38
7/20/2006 46
7/21/2006 63
7/22/2006 82
7/23/2006 84
7/24/2006 47
7/25/2006 48
7/26/2006 51
7/27/2006 47
7/28/2006 73
7/29/2006 62
7/30/2006 93
7/31/2006 31
8/1/2006 33
8/2/2006 53
8/3/2006 57
8/4/2006 93
8/5/2006 75
8/6/2006 39
8/7/2006 47
8/8/2006 54
8/9/2006 32
8/10/2006 61
8/11/2006 47
8/12/2006 85
8/13/2006 45
8/14/2006 27
8/15/2006 60
8/16/2006 45
8/17/2006 34
8/18/2006 80
8/19/2006 68
8/20/2006 76
8/21/2006 44
8/22/2006 43
8/23/2006 41
8/24/2006 43
8/25/2006 73
8/26/2006 62
8/27/2006 68
8/28/2006 38
8/29/2006 31
8/30/2006 31
8/31/2006 31
9/1/2006 110
9/2/2006 77
9/3/2006 74
9/4/2006 33
9/5/2006 63
9/6/2006 26
9/7/2006 29
9/8/2006 66
9/9/2006 54
9/10/2006 58
9/11/2006 39
9/12/2006 37
9/13/2006 34
9/14/2006 47
9/15/2006 46
9/16/2006 68
9/17/2006 65
9/18/2006 60
9/19/2006 49
9/20/2006 38
9/21/2006 36
9/22/2006 46
9/23/2006 83
9/24/2006 47
9/25/2006 44
9/26/2006 37
9/27/2006 28
9/28/2006 56
9/29/2006 78
9/30/2006 57
10/1/2006 52
10/2/2006 28
10/3/2006 32
10/4/2006 45
10/5/2006 62
10/6/2006 72
10/7/2006 56
10/8/2006 63
10/9/2006 41
10/10/2006 41
10/11/2006 24
10/12/2006 25
10/13/2006 80
10/14/2006 79
10/15/2006 76
10/16/2006 35
10/17/2006 52
10/18/2006 42
10/19/2006 50
10/20/2006 65
10/21/2006 77
10/22/2006 74
10/23/2006 58
10/24/2006 64
10/25/2006 75
10/26/2006 52
10/27/2006 86
10/28/2006 64
10/29/2006 74
10/30/2006 40
10/31/2006 62
11/1/2006 53
11/2/2006 69
11/3/2006 78
11/4/2006 102
11/5/2006 101
11/6/2006 87
11/7/2006 106
11/8/2006 79
11/9/2006 61
11/10/2006 110
11/11/2006 109
11/12/2006 99
11/13/2006 82
11/14/2006 65
11/15/2006 63
11/16/2006 109
11/17/2006 141
11/18/2006 76
11/19/2006 77
11/20/2006 132
11/21/2006 139
11/22/2006 207
11/23/2006 61
11/24/2006 150
11/25/2006 151
11/26/2006 143
11/27/2006 106
11/28/2006 54
11/29/2006 70
11/30/2006 79
12/1/2006 54
12/2/2006 153
12/3/2006 95
12/4/2006 100
12/5/2006 94
12/6/2006 69
12/7/2006 100
12/8/2006 114
12/9/2006 106
12/10/2006 89
12/11/2006 83
12/12/2006 75
12/13/2006 104
12/14/2006 44
12/15/2006 96
12/16/2006 106
12/17/2006 110
12/18/2006 87
12/19/2006 78
12/20/2006 90
12/21/2006 117
12/22/2006 163
12/23/2006 172
12/24/2006 112
12/25/2006 84
12/26/2006 133
12/27/2006 83
12/28/2006 104
12/29/2006 211
12/30/2006 156
12/31/2006 181
1/1/2007 102
1/2/2007 98
1/3/2007 70
1/4/2007 139
1/5/2007 79
1/6/2007 89
1/7/2007 113
1/8/2007 85
1/9/2007 73
1/10/2007 44
1/11/2007 98
1/12/2007 122
1/13/2007 74
1/14/2007 119
1/15/2007 69
1/16/2007 89
1/17/2007 58
1/18/2007 105
1/19/2007 100
1/20/2007 129
1/21/2007 65
1/22/2007 79
1/23/2007 78
1/24/2007 97
1/25/2007 93
1/26/2007 98
1/27/2007 95
1/28/2007 84
1/29/2007 121
1/30/2007 85
1/31/2007 68
2/1/2007 84
2/2/2007 113
2/3/2007 84
2/4/2007 99
2/5/2007 91
2/6/2007 99
2/7/2007 77
2/8/2007 86
2/9/2007 118
2/10/2007 82
2/11/2007 111
2/12/2007 46
2/13/2007 80
2/14/2007 73
2/15/2007 53
2/16/2007 148
2/17/2007 135
2/18/2007 57
2/19/2007 102
2/20/2007 78
2/21/2007 85
2/22/2007 84
2/23/2007 78
2/24/2007 82
2/25/2007 56
2/26/2007 95
2/27/2007 98
2/28/2007 65
3/1/2007 65
3/2/2007 107
3/3/2007 112
3/4/2007 89
BlueSkv Airlines: Single-Leg Revenue Management (A) Robert Shumsky, Tuck School of Business at Dartmouth December 12, 2008 BlueSky operates Flight 97, a nonstop flight from JFK to Salt Lake City that departs at 9:30 pm. For this route they fly an Airbus A320 that can carry 146 passengers. On the airplane, all seats are economy-class seats (there is no business or 1t-class), and the marginal cost of each additional passenger in these seats is negligible All passengers on Flight 97 purchase one-way tickets on that flight alone, and therefore are not connecting from other flights operated by BlueSky. The airline has constructed a two-tier fare structure for this flight: advance purchase tickets (nonrefundable tickets purchased at least 14 days in advance) cost S114 one-way. Full-fare refundable tickets purchased at any time cost $174. There is heavy demand for advance purchase tickets, so BlueSky could sell out the aircraft with these discount passengers. Therefore, BlueSky's revenue management system may need to protect a certain number of seats for full-fare tickets On March 5, 2007, BlueSky is setting its booking limits for the week of March 19, 2007 - March 25, 2007. To make these decisions, BlueSky's revenue managers have collected the daily demand for full-fare tickets over the previous 12 months. Note that these are estimates of actual demand, not the number of tickets sold. These data are available in the Excel spreadsheet, BlueSky Single -Leg (A) demand Find the optimal (revenue-maximizing) protection level for full-fare seats and the optimal booking limit for economy-class seats for each day of the week beginning on March 19. You should find 7 protection levels and 7 booking limits, the best possible pair for each day of that week You may want to use a simple formula to calculate the protection level (see, for example, the end of Section 5 of Netessine and Shumsky, 2002'). Think carefully, however, about how you use the historical data to estimate F(Q), the distribution of demand for full-fare tickets

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