×

Air cargo revenue management: Characteristics and complexities. (English) Zbl 0926.90063

Summary: Air Cargo Revenue Management (CRM) is concerned with the integrated management of the available belly space and payload, and cargo rates after accommodating passengers and their bags. CRM differs from Passenger Yield Management (PYM) in several respects due to the specific characteristics of cargo inventory, cargo business, and cargo booking behavior. This adds to the complexity of some of the traditional yield management models, and necessitates the development of certain additional models. The purpose of this paper is to highlight the major differences between CRM and PYM, and discuss the complexities involved in developing and implementing a CRM.

MSC:

90B90 Case-oriented studies in operations research
PDFBibTeX XMLCite
Full Text: DOI

References:

[1] Belobaba, P., Air travel demand and airline seat inventory management, (Flight Transportation Laboratory Report R87-7 (1987), MIT: MIT Cambridge, MA)
[2] Bodily, S. E.; Pfeifer, P. E., Overbooking decision rules, Omega, 20/1, 129-133 (1992)
[3] Bodily, S. E.; Weatherford, L. R., Perishable asset revenue management: Yield management and pricing, (Research Report (1992), College of Business, University of Wyoming)
[4] Brumelle, S. L.; McGill, J. I., Airline seat allocation with multiple nested fare classes, Operations Research, 41, 127-137 (1993) · Zbl 0775.90148
[5] Cross, R. G., Yield management in the service industries, (MIT Yield Management Conference. MIT Yield Management Conference, Cambridge, MA (1993))
[6] Curry, R. E., Optimal airline seat allocation with fare classes nesting by origins and destinations, Transportation Science, 24, 193-204 (1990)
[7] Fisher, M. L., The Lagrangian relaxation method for solving integer programming problems, Management Science, 27, 1-18 (1981) · Zbl 0466.90054
[8] Hendricks, G. L.; Kasilingam, R. G., Challenging OR problems in air cargo, (ORSA/TIMS Fall National Meeting. ORSA/TIMS Fall National Meeting, San Francisco, CA (1992))
[9] Kasilingam, R. G.; Hendricks, G. L., Cargo revenue management at American airlines, (AGIFORS Cargo Study Group Meeting. AGIFORS Cargo Study Group Meeting, Rome, Italy (1993))
[10] Oakley, S. J.; Kasilingam, R. G.; Hendricks, G. L., Air cargo overbooking under stochastic capacity, (Optimization Days 1992. Optimization Days 1992, Montreal, Canada (1992))
[11] Rothstein, M., OR and the airline overbooking problem, Operations Research, 33, 237-248 (1985)
[12] Smith, B. C.; Leimkhuler, J. F.; Darrow, R. M., Yield management at American airlines, Interfaces, 22, 8-31 (1992)
[13] Weatherford, L. R.; Bodily, S. E., Taxonomy and overview of research in perishable asset revenue management, Operations Research, 40, 831-844 (1992)
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.