Revenue management for the whole aircraft: Coordinating acceptance decisions for passenger and cargo transportation

Abstract

Recent pressures on airline profitability have increased interest in cargo revenue management (RM). In particular, some industry figures have proposed that passenger and cargo RM should be integrated, either through use of a single revenue management system (RMS) or through a single RM team. This paper argues that these approaches are unlikely to succeed. Instead, it proposes a simple business process framework for coordinating passenger and cargo access to aircraft capacity through the use of displacement-based transfer prices.