Managing the complexity of air cargo revenue management

Abstract

Revenue management is a growing field in the air cargo business, but still underdeveloped compared to other industries such as passenger airlines or hotels. One reason is that the revenue management for cargo is more complex than for the passenger business. This paper analyses the complexity drivers for air cargo revenue management (ACRM) and suggests approaches to handle this complexity. The paper enhances earlier complexity descriptions by deriving a complete list of complexity drivers out of the ACRM processes from a business perspective, clustering those complexities into demand and supply driven and developing approaches to manage the complexities within the ACRM processes and IT-tools.