Conceptual development of revenue and yield management system for shipping business

• Main Author: Fu, Jenna Li Sheng.
• 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/10356/40120
• Institution: Nanyang Technological University

Shipping companies today are facing immense competition from players both locally and globally. There is an increasing need for them to constantly develop new techniques in their operations procedures that could give them a competitive edge. In response to such needs, this study aims to develop a yield management model for the shipping business. The selected area of focus is on container liner shipping, while the approach taken for yield management in container liner shipping would be the technique of slot allocation. Slot allocation differs from the normal yield management as it only considers the management of inventory rather than the management of both pricing and inventory. The first step taken in this study was to review the background of yield management and the container liner industry, to provide an increased understanding of their operations, and prove that there is a need for a yield management system in shipping. Next, a comparative study between the airline’s and container liner shipping industry’s characteristics and current practices in yield management was done. This would serve as the justification for the usage of slot allocation techniques in container liner shipping yield management.