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Airlines price optimisation problem

Problem Statement

FlyIndia is a fictional airlines company. FlyIndia would have two types of customer segments to cater to the 'early birds', i.e. the customers who would be buying tickets much in advance and, hence, would be eligible for a discount, and the 'late buyers' or the ones who would be buying the tickets at the regular prices. The airline company wants to maximise its revenue for a particular Delhi to Bangalore flight by allocating the regular and discounted seats judiciously. There are 166 seats available in the air craft. Based on the past observations, regular demand and the discounted demand do not exceed 100 and 150 tickets respectively.

The prices of the tickets are as follows:

Discounted: ₹1190
Regular (Non-Discounted): ₹3085

Airlines_image.png

Step1:

Import Pyomo Environment

# Ask Python to load the Pyomo modelling environment