Abstract: An airline seat reservation system wherein seat reservations are controlled using, in part, a computerized seat inventory control system. The seat inventory control system, based on a concept termed Network-Based Expected Marginal Seat Revenue (EMSR), does not require the large number of variables required by the other network-based approaches, and it incorporates a probabilistic demand model without resorting to computationally intractable integer programming. The seat inventory control system uses iterative leg-based methods to control bookings in a flight network comprised of a plurality of itinerary/fare class combinations using a plurality of flight legs. When considering a particular flight leg, the total fare paid by a passenger using the leg is adjusted by taking into account an estimate of the displacement cost of the travel on the other legs of the itinerary to create a virtual fare.

Abstract: An airline reservation system implemented using a computer wherein reservations are controlled by a seat inventory control system. The inventory control system produces optimal reservation control using network-wide booking limits while taking into account the probabilistic nature of demand. The inventory control system, based on a concept termed Network-Based Expected Marginal Seat Revenue (EMSR), does not require the large number of variables required by the other network-based approaches, and it incorporates a probabilistic demand model without resorting to computationally intractable integer programming.