Maximizing revenue in airline industry through air cargo operations

Nisara Paethrangsi,V Breskich,S Uvarova

doi:10.1051/e3sconf/202124408019

Nisara Paethrangsi, V Breskich + Show 1 more

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https://doi.org/10.1051/e3sconf/202124408019

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Journal: E3S Web of Conferences	Publication Date: Jan 1, 2021
Citations: 3	License type: CC BY 4.0

Affiliation: Suan Sunandha Rajabhat University

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This research aims 1) to identify the impact of pricing strategies on airlines’ revenues, 2) to identify the impact of non-pricing strategies on airlines’ revenues, 3) to explore the significance of revenue management to airlines competitive advantage. The behavioural-demand based pricing, psychological pricing, capacity management and over contract booking strategies are determined as independent variables. A dependent variable is the competitive advantage, and a mediator is revenue management. Primary data was collected from an online survey of 500 airline industry and revenue management strategies personnel; there were only 424 completed questionnaires in return. Results show that larger competitive advantage is associated with non- pricing strategy which is the over contract booking and there is a positive relationship between the psychological pricing and competitive advantage, as compared to the behavioural-demand based pricing and capacity management based strategic approaches.

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Air cargo revenues are currently dramatically increased, the business is providing support to airlines at a time when passenger revenues collapsed
Revenue increase for air cargo has gained an important strategy of most cargo airlines and passenger airlines [1]
This indicates that the psychological pricing and demand based pricing are less deviated from their means position, while the over contract booking and capacity management highly deviate from their means

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Air cargo revenues are currently dramatically increased, the business is providing support to airlines at a time when passenger revenues collapsed. Revenue increase for air cargo has gained an important strategy of most cargo airlines and passenger airlines [1]. Cargo movements from Thailand and CLMV countries (Cambodia, Laos, Myanmar and Vietnam) are on the rise. Revenue from cargo of the passenger airlines business was poor, cargo income was only a small proportion of airline revenues, and the management have not allocated both manpower and capital resources on it. Profit from air cargo did not gain attention and it was often seen as no more than by-product operations to fill belly hold space in the aircraft [2]

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