Conceptual development of revenue and yield management system for shipping business

• Main Author: Poh, Pei Heng.
• Other Authors: Tiong Lee Kong, Robert
• Format: Final Year Project
• Language: English
• Published: 2010
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/38864
• Institution: Nanyang Technological University

Yield management originated from the airline industry and is widely adopted by other industries such as hotel and car rental. For this paper, we will first look deeper into the airline industry to understand the characteristics that they possess to allow yield management to be efficiently and effectively implemented. We will then turn our focus to the container industry and try to understand the principles on how they earn their revenue. We will also discuss on the challenges facing the container industry and find out what are the similarities and differences between the airline and container industry and how yield management which is also known as revenue management may be implemented into the container industry. After understanding the dynamics of the container industry, we will propose a model that will fit the needs of the liner industry. Illustration using scenarios will further explain how the model will be useful from a strategic point of view and an operation point of view.