Article ID: | iaor200939572 |
Country: | United Kingdom |
Volume: | 7 |
Issue: | 4 |
Start Page Number: | 315 |
End Page Number: | 325 |
Publication Date: | Dec 2008 |
Journal: | Journal of Revenue and Pricing Management |
Authors: | Vinod Ben, Narayan Chittur P |
Keywords: | yield management |
The fundamental problem that has plagued the air cargo industry over the past two decades has been that of declining yields. This paper presents a framework for optimising cargo rates based on a customer's willingness to pay and the underlying market strategy. By addressing cargo rates, which are a fundamental input into the revenue management process, cargo yields can be improved by determining the optimal published rate tariff structure for commodities.