engleski

Specificities and requirements of cargo revenue management

While the practice of revenue management is well established in the passenger airline industry and is often claimed to generate incremental revenues of between 3-8 per cent, in the cargo industry, however, the revenue management concept is underdeveloped. Air cargo revenue management is concerned with the integrated management of the available cargo space, and cargo rates and cannot use traditional revenue management techniques originally constructed for the passenger problem. Cargo revenue management differs from passenger revenue management in several respects due to the relevant characteristics cargo business: the heterogeneity of cargo shipments, capacity uncertainty due to weather conditions, the amount of fuel etc., cargo booking behavior, loading issues and air cargo rating system which considers both the mass and the volume of the shipment. The paper highlights the major differences between cargo revenue management and passenger revenue management, discusses the complexities involved in developing and implementing a cargo revenue management and suggests approaches how those challenges can be managed.

air cargo revenue management; passenger revenue management; allotments; booking process; itinerary control

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