The main content of air cargo revenue management and the supporting capability of IT system, and the air logistics revenue management system mainly includes

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Original title: Main content of air cargo revenue management and IT system supporting capability

Revenue management, also known as output management or price elasticity management; Also called "benefit management" or "real-time pricing", it mainly determines the best sales or service price by establishing a real-time prediction model and analyzing the demand behavior based on market segmentation. Its core is price segmentation, which is to implement different price standards to customers according to their different demand characteristics and price elasticity.

Revenue management of freight is a management method system that applies revenue management to freight sales. Freight revenue management can be defined as selling the appropriate freight products (classes and services) to more appropriate customers at the appropriate price at the appropriate time. While meeting the market demand, the resources (capacity) of the airline reach the maximum utility, thus improving the revenue situation of the airline.

In brief, the revenue management system can be divided into four aspects: forecasting, overbooking, stock control and pricing.

After years of research and development, revenue management has a relatively complete set of thought and method system, including market segmentation, overbooking, team management, seasonal management, segment optimization, class allocation, etc.

1、 Market segmentation

Reasonable class allocation system, group management and seasonal management are all based on sufficient market segmentation. The aviation revenue management has the following segments for the freight market.

1. According to the frequency of air cargo customers, customers can be divided into the following five categories: loyal customers, ordinary customers, unfaithful customers, potential customers and customers who have left.

2. According to the actual characteristics of air cargo business, customers can be divided into ordinary bulk cargo owners and regular cargo owners. There are two kinds of regular cargo owners: big cargo owners and agents. In the actual production process, one of the main differences between the two is that agents have the right to issue freight bills, while big cargo owners do not have this right, and there is no substantial difference in other aspects.

3. According to the degree of urgency of freight customers for their consigned goods, they can be divided into ordinary demand transport customers, urgent demand transport customers, and urgent demand transport customers.

2、 Available capacity estimation

Freight transport capacity is the resource base available for use. In the allocation of transport capacity, the available resources include two parts: one is the available physical class, and the other is the available virtual class considering overbooking. Because the size of cargo space is affected by the number of passengers' luggage, the size of the actual cargo space cannot be determined after the flight plan is determined, so it is necessary to predict the tonnage and space of the actual cargo space. The purpose of overbooking is to make up for the loss caused by the failure to fulfill the confirmed order. The fulfillment rate of the confirmed order is the key factor of overbooking. Different from the fact that the main change factor in the handling of passenger traffic overbooking is only after the order but not the show rate, the main change factor in the freight overbooking is the actual class and the confirmed order fulfillment rate, which makes it more difficult to accurately determine the freight overbooking volume.

3、 Transport capacity resources and market demand

Generally, according to its estimation of air cargo market demand, the transportation capacity is divided into two stages for capacity allocation. In the first stage, a part of the transportation capacity is sold to the agent in the form of "fixed price package volume" when signing an agreement with the agent at the beginning of each year, that is, long-term transportation capacity allocation, also known as agreement sales. In the second stage, a part of the remaining capacity of the agreed sales is flexibly sold before the flight takes off according to the market demand and supply conditions, which is also called short-term capacity allocation.

4、 Class allocation

Class allocation refers to the allocation of flight class to goods of different fare levels. The purpose of class allocation is to ensure that the class is reserved for high-income customers and limit the number of low fare classes.

In order to allocate the space and ensure the booking requirements of high-income customers, it is necessary to first predict the cargo demand of each class of class according to the historical data, and then determine the protection level of high-income classes from the highest to the lowest by combining factors such as the capacity of a specific period and a specific flight, the current booking status, the way cargo customers purchase space, and the price strategy of competitors. However, if the level of protection is too high, there may be too many empty seats, reducing the income level of flights; If the protection level is too low, it is possible to reject the demand of high-yield customers, and at the same time, it will cause income loss. Therefore, airlines must use appropriate methods to determine the appropriate level of space protection for high-yield cargo customers.

According to the content of air cargo revenue management, the core problems to be solved by the IT system include:

1. Forecast of available class

2. Freight capacity oversold model

3. Long term Distribution Model of Freight Capacity

4. Free sales control

5. Analysis and forecast of freight market demand

6. Evaluation of freight transportation value

Later, we will discuss and design the above six points respectively, and give full play to the advantages of new technologies such as big data and artificial intelligence to further improve the ability to optimize the existing freight revenue system.

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Formerly known as "Air Travel IT Circle", it was founded in 2015. It was founded by senior personnel in the field of digital intelligence in the aviation tourism industry, focusing on the research of digital solutions in the aviation tourism industry, training digital talents in the aviation tourism industry, striving to become a professional bridge between aviation tourism enterprises and digital service enterprises, and the cradle of aviation tourism digital intelligence professionals.

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