On the robustness of the network-based revenue opportunity model

The revenue opportunity model (ROM) is a widely known method for measuring revenue management (RM) performance. While adapting the ROM to recent developments of RM science, the question of applicability and in particular the validity of the ROM became increasingly important. In this article, we introduce a novel simulation-based approach to measure the robustness of the ROM against errors in the input data. We also test the robustness of the network-based ROM for airline RM with independent demand on realistic data and present computational results.