Revenue Management to Maximize Global Network Revenue for a Satellite Communication Operator

Abstract

The satellite communication (SatCom) industry is rapidly expanding, with supply growing much faster than demand, potentiallystraining market prices and company stability. Effective revenue management (RM) can help operators optimize the use of lim-ited and expensive satellite resources. Current SatCom RM methods fail to account for both the temporal and spatial nature ofsatellite services. This paper presents a multizone displacement-adjusted virtual nesting (DAVN) RM method to create bookinglimits that guide operators in determining which products to accept to maximize revenue. By incorporating spatial interzoneeffects, the multizone method improves revenue compared to the separate zones method by 2%–10%. The results demonstratethat under varying pricing structures, the multizone approach increases the acceptance of high-revenue mobile products by ap-proximately 10%, with a corresponding reduction in the sale of longer duration stationary products.