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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 Statement

Copyright 2018 Elsevier Ltd.

DOI: doi:10.1016/j.jairtraman.2018.10.003


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 Details

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 Group:Marketing
Research Field:Pricing (incl. consumer value estimation)
Objective Division:Transport
Objective Group:Aerospace transport
Objective Field:Air freight
UTAS Author:Zhang, W (Dr Vera Zhang)
ID Code:129591
Year Published:2019
Web of Science® Times Cited:7
Deposited By:Maritime and Logistics Management
Deposited On:2018-12-08
Last Modified:2020-05-06

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