Maximizing Cargo Profits through Cargo Revenue Management

by | Aug 23, 2013 | Business

Many people believe that the revenue that airlines receive is based on the passengers that use a particular airline. While that is certainly the mainstay of a major airlines profits, airlines also profit a great deal from shipping cargo. The shipping of various items on passenger airliners can be big business, but in order for it to be successful, there are many factors included. That is why many airlines and cargo businesses are turning to Cargo Revenue Management as a way to maximize their profits from carrying cargo on passenger airliners.

The first, and one of the most vital, aspects of Cargo Revenue Management is determining the capacity that a passenger airliner will have for extra cargo. Considering the amount of luggage in terms of the space it occupies in the cargo holds of an airliner as well as the weight of the luggage is important in determining how much cargo space the airliner will have.

Unfortunately, these sorts of calculations can’t be made last-minute. That is where a revenue management solution will help to make estimations as to the amount of cargo space available and, from there, cargo space can be booked well ahead of time.

The other thing that Cargo Revenue Management can do for an airline company is to help determine the demand that will be needed for cargo. This is done through the software solution accurately analyzing years of data determining the amount of passengers and the amount of luggage that an airliner will carry at a given time.

By studying historical data, the revenue management software can estimate the different times of the year where the demand for cargo will be high and match that up the availability of more cargo space. Not only does this help to ensure that there’s a proper amount of cargo space when cargo deliveries are booked but it will also help airlines prepare competitive prices for shipping cargo.

There many other aspects that a Cargo Revenue Management software solution can offer an airline. However, by having an automated and detail orientated solution, airline companies can maximize their cargo space and find new sources to generate profits through the delivery of airline cargo.

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