Abstract
Long a cornerstone of passenger airline strategy, revenue management has yet to be embraced by the cargo, freight and shipping establishment. While the business problems of maximising cargo profit differ from passenger airlines in circumstance, the business model contains numerous parallels. Cargo revenue management has come of age and, with automation, is now equipped to deal with the challenges associated with profit optimisation. But profit maximisation also requires a willingness to address fundamental issues such as cargo product definition, contract pricing, short-term booking controls and medium-term allocations, among others. In discussing specific system and business-process solutions, this paper confirms the imperative that cargo carriers must adopt revenue management or face the consequences of revenue opportunity loss and being competitively disadvantaged.
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2has a PhD in Operations Research from Stanford University. She has 13 years of experience in revenue management, business analysis and modelling techniques for the transportation industry. She has a very strong background in applying quantitative techniques to solve logistics business problems as well as in strategic business planning. Dr Diener has designed systems and business processes that address commercial, operational and financial aspects of airlines, container shipping lines, freight forwarders and transport service providers. Dr Diener is President and a founding member of Advil Technology, coming previously from Decision Focus Inc.
3as Head of the travel and transportation division of PROS Revenue Management, has directed the best-practice consulting group and has led various PROS systems-related projects at more than eighty airlines worldwide. Since joining PROS Revenue Management in 1988, he has contributed to the business design of various PROS systems and their applications. Mr Yuen's prior experience in the airlines include pricing and tariffs, central reservations control, revenue management, reservations, marketing automation, market planning, scheduling and product management.
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Billings, J., Diener, A. & Yuen, B. Cargo revenue optimisation. J Revenue Pricing Manag 2, 69–79 (2003). https://doi.org/10.1057/palgrave.rpm.5170050
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DOI: https://doi.org/10.1057/palgrave.rpm.5170050