Ayvaz Çavdaroğlu, NurGauri, Dinesh K.Webster, Scott2019-06-272019-06-272019130047-28751552-67630047-28751552-6763https://hdl.handle.net/20.500.12469/659https://doi.org/10.1177/0047287517737178Revenue management (RM) has received considerable attention from both academic and business professionals. It encompasses several techniques regarding capacity allocation pricing and resource management of fixed time-sensitive capacity. RM can be roughly divided into two categories defined by the control mechanism that increases revenue: capacity allocation or price optimization. Our work falls in the latter category. In our model we allow for partial substitutability among products (e.g. a customer making a purchase decision may consider multiple alternatives-different departure dates different destinations different cabin types). We also include marketing expense in addition to prices as a lever for increasing revenue. These features are relevant to dynamic pricing in practice. The method is illustrated with booking data from a cruise company yielding optimal advertising and prices for 300 products. The application of the model results in an increase in revenue in the range of 8%-20%.eninfo:eu-repo/semantics/openAccessRevenue managementCruise industryMultinomial choice modelEmpirical applicationArticle104120158WOS:00045231030000710.1177/00472875177371782-s2.0-85054977352Q1Q1