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Differential pricing strategies of air freight transport carriers in the spot market
Yu, S and Yang, Z and Zhang, W, Differential pricing strategies of air freight transport carriers in the spot market, Journal of Air Transport Management, 75 pp. 9-15. ISSN 0969-6997 (2019) [Refereed Article]
Copyright 2018 Elsevier Ltd.
The single pricing approach fails to reflect different demand changes in response to its cargo space prices at different sales periods. This might be an obstacle to maximize the cargo space revenue of air freight carriers. This paper conducts the empirical analysis on pricing strategies in the spot market for two competitive air freight transport carriers operating on the same segment. It concludes that two carriers gain more revenues with the optimized differential pricing approach than with the single pricing approach. In theory, the research enriches the current literature in terms of pricing strategy optimization under the competition of two parties. In practice, it provides references for air freight transport carriers in their decision-making of applying the differential pricing strategy.
|Item Type:||Refereed Article|
|Keywords:||air freight transport, revenue management, single pricing, differential pricing, competitive market, spot market, sales period|
|Research Division:||Commerce, Management, Tourism and Services|
|Research Field:||Pricing (incl. consumer value estimation)|
|Objective Group:||Aerospace transport|
|Objective Field:||Air freight|
|UTAS Author:||Zhang, W (Dr Vera Zhang)|
|Web of Science® Times Cited:||7|
|Deposited By:||Maritime and Logistics Management|
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