Research On Influencing Factors And Revenue Optimization Of Air Cargo Pricing

With the continuous growth of international trade brought about by economic globalization and adjustment of China's industrial structure,air cargo transportation,which plays an important role in long-distance transportation,has achieved smooth development.However,in the air cargo industry,there has been a long-standing phenomenon of paying much attention on passengers and little on cargo,which has a great relationship with low carrier rate and imbalance between cargo supply and demand.The profitability of air cargo transportation has been seriously affected and restricted.To achieve further development of air cargo transportation,it is an urgent problem for airlines to properly balance the relationship between volume and price and improve the revenue management level.Establishing a reasonable pricing policy is an important method of revenue management.The core of this paper is to determine these influencing factors of air cargo pricing,and to establish a pricing optimization model in order to provide a theoretical and effective basis for the airlines' pricing.Firstly,this paper analyzes China's air cargo industry,which points out the correlation between developments of air cargo and economic,and displays the huge potentiality of China's air cargo industry.At the same time,it combines the data of nearly ten years to summarize the seasonal change of demand and market competition of airlines.What's more,an example analysis is provided,which is based on 2016 annual air cargo transportation data of the industry-leading S express company.Then air cargo pricing influence factors are selected by combining qualitative and quantitative methods,including the scarcity of airline resources,the competition intensity of airlines,customer price tolerance,seasonal variation,and type of products.The SPSS correlation analysis and BP neural network fitting method are used to finally determine the pricing influence factors.Finally,based on some relevant theories such as game theory and previous research results,the pricing optimization model is built and its optimization effectiveness is demonstrated by an example.At present,most airlines have a relatively extensive management of air cargo transportation revenues.Also there are few studies on the analysis of its pricing factors and systematic pricing strategies,and the previous studies mostly focused on the theoretical level.The innovation of this paper is that it starts with actual data of air cargo industry,and the pricing factors are mapped to the related theories so as to establish a pricing optimization model which is proved to be effective with an actual example.Conclusively,this paper owns more application value.