On optimising cargo rates to improve the bottom line

On optimising cargo rates to improve the bottom line

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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: ,
Keywords: yield management
Abstract:

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.

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