The history of forecasting models in revenue management

Forecasting has been used in revenue management (RM) for nearly the last 60 years. This brief, historical article surveys over 80 articles from the recent period and traces the evolution of RM forecasting models. The natural breakdown of forecasting sub-categories that are covered within the airline industry include: origin–destination forecasting and whether to aggregate or disaggregate the data, user adjustment, hybrid forecasting in less-restricted fare environments, seasonality, forecast accuracy and choice-based forecasting. We also review RM forecasting in the hotel and other industries.