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

Yu, S, Yang, Z and Zhang, W ORCID: 0000-0002-5651-6706 2019 , 'Differential pricing strategies of air freight transport carriers in the spot market' , Journal of Air Transport Management, vol. 75 , pp. 9-15 , doi: 10.1016/j.jairtraman.2018.10.003.

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Abstract

The single pricing approach fails to reflect different demand changes in response to its cargo space prices atdifferent sales periods. This might be an obstacle to maximize the cargo space revenue of air freight carriers. Thispaper conducts the empirical analysis on pricing strategies in the spot market for two competitive air freighttransport carriers operating on the same segment. It concludes that two carriers gain more revenues with theoptimized differential pricing approach than with the single pricing approach. In theory, the research enrichesthe 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 differentialpricing strategy.

Item Type: Article
Authors/Creators:Yu, S and Yang, Z and Zhang, W
Keywords: air freight transport, revenue management, single pricing, differential pricing, competitive market, spot market, sales period
Journal or Publication Title: Journal of Air Transport Management
Publisher: Elsevier Sci Ltd
ISSN: 0969-6997
DOI / ID Number: 10.1016/j.jairtraman.2018.10.003
Copyright Information:

Copyright 2018 Elsevier Ltd.

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