Differential pricing strategies of air freight transport carriers in the spot market

Shunan Yu, Zhongzhen Yang and Wei Zhang

Journal of Air Transport Management, 2019, vol. 75, issue C, 9-15

Abstract: The single pricing approach fails to reflect different demand changes in response to its cargo space prices at different sales periods. This might be an obstacle to maximize the cargo space revenue of air freight carriers. This paper conducts the empirical analysis on pricing strategies in the spot market for two competitive air freight transport carriers operating on the same segment. It concludes that two carriers gain more revenues with the optimized differential pricing approach than with the single pricing approach. In theory, the research enriches the current literature in terms of pricing strategy optimization under the competition of two parties. In practice, it provides references for air freight transport carriers in their decision-making of applying the differential pricing strategy.

Keywords: Air freight transport; Revenue management; Single pricing; Differential pricing; Competitive market; Spot market; Sales period (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:75:y:2019:i:c:p:9-15

DOI: 10.1016/j.jairtraman.2018.10.003

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