Predictive Analytics Platform for Airline Industry

Abstract

The research is to develop accurate demand forecasting model to control the availability in Airline industry. The primary outcome of the model is that the Airline organization can maximize the revenue by controlling the availability. The product in airline industry is the seat, which is an expensive, unstock able product. The demand for the seats is almost uncertain, the capacity is constraint and difficult to increase and the variable costs are very high. Hence the priority of the expected demand forecast is very high for airline industry. An accurate mechanism to predict the revenue for future months of ODs (Origin destinations) is done using fare and passenger data. The revenue is derived by the number of passengers and the fares they pay which vary for each flight. Airline travel is very susceptible to the social, political and economic changes. Therefore, passenger buying patterns change quite dynamically. Hence, it is challenging to develop an accurate method to project the revenue for each route. To overcome this, we are going to use semi-supervised learning mechanism. We have the current ticketed revenue plus we have the current booked passengers. We also have the ticketed passenger details of previous flights. Hence most of the information is available, however changing market conditions is an unknown variable which can have a significant impact on passenger travel patterns. Through this research We are going to design and develop the best fit model to forecast flight OD level passenger demand based on the historical data.