Implementation of cargo revenue management at KLM

Abstract

The practice of revenue management (RM) is well-established in the passenger airline industry. In the cargo industry, however, the RM concept is underdeveloped. This practice paper describes how KLM Cargo implemented RM and how it learned to overcome the difficulties related to this. First, some key characteristics of the air cargo industry are described that are crucial to RM. After the introduction of RM principles and organisation, processes and systems are discussed. The final section highlights learnings and critical success factors during implementation, as well as plans for the future.