Research on Air Cargo Overbooking Model

Air Cargo Revenue Management has already become a powerful tool for air cargo industry, but there were little research on cargo revenue management in the world. A two-dimensional (weight and volume) cargo overbooking model was developed with profit maximization as the objective. And the result of the model indicated that the optimal overbooking level is related to show-up rate greatly rather than booking requests. It was proved that the model is efficient and easy to be put into practice.