Stefan POELT

Forecasting and Optimization at LH

This presentation gives an overview of forecasting and optimization techniques used in Revenue Management at Lufthansa German Airlines. Revenue Management has a long history at LH, starting with a leg-based system in the late 80s. In 1995 LH enhanced its RM system to a so-called ‘Bid Pricing Heuristic’ – the first step towards O&D control. Currently, an O&D-forecaster is rolled out and a project to implement an O&D-optimization system is started. The presentation highlights some important steps along that line and gives some details, simulations results, and experiences with different forecast and optimization techniques used at LH.