Airline robust overbooking strategy with limited information

Overbooking is not only an important content of revenue management, but also an effective way to increase airlines´ profits. Arrival rate of ticketed passengers is a key factor to determine the number of overbooking, but its information is often limited. Based on the limited distribution information of arrival rate, this paper establishes a single-fare-class overbooking model, and obtains a robust overbooking strategy. Numerical analysis shows characteristics and stability of the strategy.