In this detailed video on Multiclass Models: EMSR-a and EMSR-b for our Operations and Revenue Analytics course, we explore advanced strategies for optimizing capacity allocation across multiple customer segments. We will begin by framing the Multiple Class Problem using a decision tree approach, which helps visualize the decision-making process. Next, we’ll dive into the concepts of Expected Marginal Seat Revenue (EMSR), examining both EMSR-a and EMSR-b models to understand their unique applications and implications for revenue management. Finally, we’ll compare EMSR-a and EMSR-b, highlighting their strengths and differences in practical scenarios.