Maximizing revenue in airline industry through air cargo operations

¹ College of Hospitality Industry Management, Suan Sunandha Rajabhat University, Thailand

^* Corresponding author: nisara.pa@ssru.ac.th

Abstract

This research aims 1) to identify the impact of pricing strategies on airlines’ revenues, 2) to identify the impact of non-pricing strategies on airlines’ revenues, 3) to explore the significance of revenue management to airlines competitive advantage. The behavioural-demand based pricing, psychological pricing, capacity management and over contract booking strategies are determined as independent variables. A dependent variable is the competitive advantage, and a mediator is revenue management. Primary data was collected from an online survey of 500 airline industry and revenue management strategies personnel; there were only 424 completed questionnaires in return. Results show that larger competitive advantage is associated with non- pricing strategy which is the over contract booking and there is a positive relationship between the psychological pricing and competitive advantage, as compared to the behavioural-demand based pricing and capacity management based strategic approaches.