© Teguh Jati Prasetyo

As the air cargo industry battles to find new models in its way of doing business in the face of passenger declines, pricing will be a critical choice. This is a short but interesting look at the power of pricing.

“Price is an extremely powerful tool for setting customer expectation,” notes the author. “Any short-term measure to cut price will impact perception of quality.”

Christian Gessner, head of sales at IBS commented on the article: “We have seen air cargo rates peek due to the imbalance of capacity and demand during the crisis. But rates are dropping again. Why? Perhaps we should rethink the ways we market our services in the air cargo industry.” Indeed.

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