5,031 research outputs found

    An examination of ongoing trends in airline ancillary revenues

    Get PDF
    The airline industry seems permanently embedded in producing thin margins and continuously combatting downward pressure on yields. To perpetuate the problem, the industry remains eclipsed with high cost structures and low barriers to entry. However, a new sizzling concept continues to counterbalance these effects in the form of ancillary revenues. Globally, these revenues have increased by 121% from 2010 to 2014 – and the trend is set to continue as carriers are quickly implementing structural changes to accommodate these revenues streams. This paper examines the performance of the two core classifications of ancillary revenues, which are unbundled products and commission based income. It also investigates the willingness of passengers to pay for these services together with what type of ancillary items are acceptable at a particular price point. The study found that passengers value a narrow range of perceived ‘necessity’ products and services such as food and drink, checked baggage and seat assignment as opposed to perceived ‘optional’ unbundled or commission based products/services. It also found significant differences in WTP for specific ancillary services based on carrier type (FSC/LCC/Charter), length of flight (long and short haul) and journey purpose (business, leisure, VFR)

    Dynamic Capacity Control in Air Cargo Revenue Management

    Get PDF
    This book studies air cargo capacity control problems. The focus is on analyzing decision models with intuitive optimal decisions as well as on developing efficient heuristics and bounds. Three different models are studied: First, a model for steering the availability of cargo space on single legs. Second, a model that simultaneously optimizes the availability of both seats and cargo capacity. Third, a decision model that controls the availability of cargo capacity on a network of flights

    Dynamic Capacity Control in Air Cargo Revenue Management

    Get PDF
    This book studies air cargo capacity control problems. The focus is on analyzing decision models with intuitive optimal decisions as well as on developing efficient heuristics and bounds. Three different models are studied: First, a model for steering the availability of cargo space on single legs. Second, a model that simultaneously optimizes the availability of both seats and cargo capacity. Third, a decision model that controls the availability of cargo capacity on a network of flights

    INVESTIGATION ON SPOT BOOKING AND DYNAMIC OCEAN FREIGHT MODELLING FOR HIGHER SPACE UTILISATION ON ULTRA LARGE CONTAINER VESSELS

    Get PDF
    The article deals with the very topical issues of the use of spot ship’s space booking and the dynamic adjustment of ocean freight, according to the demand and availability of cargo space on container ships. Container lines are facing the challenges of filling the growing container ships, which also raises the difficulty of managing the overbooking. Two research hypothesis; that (H1) freight forwarders have concerns about a new spot booking mode and a dynamic way of formulating ocean rates; and that (H2) freight forwarders feel threatened by Container Lines (CL) to some extent to phase them out from the organization of intermodal transport chains due to the introduction of larger ships and the risk of low space occupation, are followed by the research. A survey between freight forwarders and NVOCCs (Non-Vessel Operating Common Carrier) on a global scale provides guidelines for the further development of CL model for the booking process and the formation of ocean rates because the results expose how new ways of working have a greater impact on the operational and commercial work between CL, freight forwarders and NVOCCs. According to the obtained result, the article proposes a three-step approach to be developed by CL that would bring freight forwarders and NVOCCs closer to a new way of working, reduce business risks, and, as a result, provide leverage to achieve ship space optimization and lower space pressure on container terminals. The study provides new understandings in building new operational models for efficient maritime logistics and brings novelty to the scientific community by defining descriptive gaps in changing strategic and operational approach for ship’s cargo space optimization

    The Air Cargo Load Planning Problem

    Get PDF
    A major operational planning problem in the air cargo industry is how to arrange cargo in an aircraft to fly safely and profitably. Therefore, a challenging planning puzzle has to be solved for each flight. Besides its complexity, the planning is mostly done manually today, which is a time consuming process with uncertain solution quality. The literature on loading problems in an air cargo context is scarce and the term is used ambiguously for different subproblems like selecting containers, packing items into containers, or loading containers into aircraft. All of the presented models only focus on certain aspects of what is in practice a larger planning problem. Additionally, some practical aspects have not been covered in the literature. In this work, we provide a comprehensive overview of the air cargo load planning problem as seen in the operational practice of our industrial partner. We formalize its requirements and the objectives of the respective stakeholders. Furthermore, we develop and evaluate suitable solution approaches. Therefore, we decompose the problem into four steps: aircraft configuration, build-up scheduling, air cargo palletization, and weight and balance. We solve these steps by employing mainly mixed-integer linear programming. Two subproblems are further decomposed by adding a rolling horizon planning approach and a Logic-based Benders Decomposition (LBBD). The actual three-dimensional packing problem is solved as a constraint program in the subproblem of the LBBD. We evaluated our approaches on instances containing 513 real and synthetic flights. The numerical results show that the developed approaches are suitable to automatically generate load plans for cargo flights. Compared to load plans from practice, we could achieve a 20 percent higher packing density and significantly reduce the handling effort in the air cargo terminal. The achieved costs of additional fuel burn due to aircraft imbalances and reloading operations at stop-over airports are almost negligible. The required runtimes range between 13 and 38 minutes per flight on standard hardware, which is acceptable for non-interactive planning. Cargo airlines can significantly profit from employing the developed approaches in their operational practice. More and especially the profitable last-minute cargo can be transported. Furthermore, the costs of load planning, handling effort, and aircraft operations can be significantly reduced

    \u3ci\u3eThe Conference Proceedings of the 2001 Air Transport Research Society (ATRS) of the WCTR Society, Volume 2\u3c/i\u3e

    Get PDF
    UNOAI Report 01-7https://digitalcommons.unomaha.edu/facultybooks/1147/thumbnail.jp
    corecore