Request selection and exchange approach for carrier collaboration based on auction of a single request

This paper addresses the request selection and exchange problem in the carrier collaboration process with limited sharing of carrier’s request information. A framework including two decision makers, carrier and coordinator, is constructed and its collaboration process is described. In this framework, two request selection models for the carriers are established. In addition, a request exchange method for the coordinator is proposed and four profit allocation strategies are discussed. Compared with other four approaches, simulation results show that the proposed approach is effective and efficient.     

Fair profit contract for a carrier collaboration framework in a green hub network under soft time-windows: Dual lexicographic max–min approach

This paper models a novel and practical bi-objective hub-location problem under a centralized carrier collaboration framework between one holding company and multiple carriers. The holding company first establishes a hub-and-spoke network in order to locate p hubs and to assign the center nodes to the located hubs. Then, it allocates the transportation routes of the hub network to the carriers. In contrast, the carriers should select an appropriate vehicle type to serve the transportation requests in a green hub network. The carriers are also able to meet the transportation requests within a certain time-window based on a soft time-window mechanism. Moreover, aiming to emphasize green transportation, a vehicle emission model is used to take into account CO₂ emissions of the vehicles where the fuel consumption is a function of speed level. Aiming to identify a win–win deal between the holding company and the carriers, a dual lexicographic max–min (LMM) approach is used in order to optimize their profits in a fair way. Finally, some numerical experiments are presented to demonstrate the applicability of the proposed methodology. The computational results show that not only the holding company and the carriers can better generate a fair profit contract among themselves using the LMM approach, but also both can obtain more profit in the worst case for their businesses rather than using the max–min approach. In addition, sensitivity analyses show that increasing the size of the soft time-window leads to a reduction in the delivery schedule violations, while results in raising the total profit. Moreover, the tax cost of fuel consumption as well as the number of potential vehicles has a substantial impact on both the fuel consumption and carrier’s profit.     

The airfare pricing and seat allocation problem in full-service carriers and subsidiary low-cost carriers

This study investigates the competitive market situation in the air transport industry considering full-service carriers (FSC), subsidiary low-cost carriers (LCC) and rival LCCs on the flight-leg level while subsidiary LCCs are established by FSCs against rival LCCs to keep the market share and to make more profit. It is assumed that the demand of economy class for each airline follows a known distribution, and the mean value of that distribution is a function of its airfare and the airfare differences with other airlines. In addition, no-shows and cancellations are introduced to reflect a real situation. Based on this situation, a mathematical model is developed to derive efficient airfare pricing and seat allocation for each airline for maximizing the profit sum of both FSCs and subsidiary LCCs using a repeated game. A repeated game model integrated with a Tabu search algorithm and an EMSR based heuristic is suggested to deal with the proposed repeated game. A numerical example is provided to validate the model and solution procedure with hypothetical system parameter values under two kinds of market situations that show before and after the emergence of subsidiary LCCs.     

Cooperation among truck carriers in seaport containerized transportation

Nowadays the majority of goods passing through seaports are transported by road, resulting in a large number of empty movements and high total costs. This paper proposes an optimization model for the cooperative planning of multiple truck carrier operations in a seaport environment for maximizing the total profit derived from their cooperation. A compensation mechanism is introduced to motivate carriers to share their trips. Time windows, trip deadlines and fleet sizes are considered. The planning approach is evaluated using real data sets from the Italian port of Genoa. Numerous scenarios are tested and an extensive computational analysis is reported.     

A less-than-truckload carrier collaboration planning problem under dynamic capacities

This paper addresses the deterministic dynamic single carrier collaboration problem for the small- to medium-sized less-than-truckload (LTL) industry. It is formulated as a binary (0–1) multi-commodity minimum cost flow problem and solved using a branch-and-cut algorithm. Its inherent network structure is exploited to generate the lower bounds to the branch-and-cut algorithm using the network simplex method and by relaxing the integrality constraints. Results from numerical experiments indicate inherent trade-offs at the higher degrees of collaboration between waiting for more affordable collaborative capacity and incurring higher holding costs. They also suggest that collaborating LTL carriers experience increased capacity utilization.     

A carrier’s optimal bid generation problem in combinatorial auctions for transportation procurement

We consider the carrier’s optimal bid generation problem in combinatorial auctions for transportation procurement. Bidders (carriers) employ vehicle routing models to identify sets of lanes (origin-destination pairs) based on the actual routes that a fleet of trucks will follow in order to maximize profit. Routes are constructed by optimally trading off repositioning costs of vehicles and the rewards associated with servicing lanes. The carrier optimization represents simultaneous generation and selection of routes and can incorporate any existing commitment. We employ both column generation and Lagrangian based techniques for solving the carrier optimization model and present numerical results.     

Effect of air services availability on international visitors to New Zealand

We examine the effects of discrete changes in the availability of direct air services on the number of international visitor arrivals to New Zealand. We consider five different countries of origin and control for GDP and exchange rates. The results are mixed, suggesting that regional hubs and robust third-country carriers provide sufficient airlift for many visitors from countries without direct air services to New Zealand. We outline the resulting implications for international air services policy.     

The international competitiveness of China’s shipbuilding industry

This paper introduces profit rate as a more relevant measure of international shipbuilding competitiveness. We also develop a model to identify competitiveness factors and their relative importance. Our findings suggest that Chinese competitiveness derives from shipbuilding costs, whereas contract price deviations are the driver for Japan and South Korea. We argue that China became more competitive in building of bulk carriers and tankers than Japan and to a lesser extent than South Korea after year 2000 and that a market trough would further strengthen China’s competitiveness. Our results have broad implications for monitoring industrial performance and formulating competitive strategies for shipyards.     

Innovation: The winning formula to regain profitability in aviation?

Most airlines have overcome the immediate effects of the recent global aviation crisis partly because of economic upturn and partly because of massive restructuring. Legacy network carriers had to take on the challenge of low-cost carriers, and regain competitiveness in short- and mid-haul business through considerable cost cutting and more flexible pricing models and are now profitable. On the other hand, many airlines do not make a reasonable profit, and the majority of carriers do not earn their capital cost. Airlines claim that they are still squeezed between their neighbors in the aviation value chain that leverage local monopolies (such as airports) or oligopolies (such as aircraft equipment manufacturers). Many legacy carriers, however, have not properly prepared for an era of deregulated and changing markets. They have not yet taken appropriate steps to escape from there positions between the few successful premium carriers and low-cost carriers. This middle position has little differentiation potential, an unsatisfactory growth perspective, and poor profitability prospects. Further, despite ongoing liberalization, the regulatory framework still does not enforce far-reaching consolidation, leaving the industry in a fragmented status with massive overcapacities. Consequently, the industry needs to further leverage external deregulation as well as internal restructuring to establish more efficient and competitive business models. Aside from basic cost cutting, innovation may become the decisive driver of progress, comprising advanced business models, customer segmentation, and technologies (Franke, M., 2006. Innovation: the winning formula to regain profitability in aviation? Speech at the Hamburg Aviation Conference, Hamburg).     

Legacy carriers fight back: Pricing and product differentiation in modern airline marketing

The adoption of the low-cost carrier business model has applied competitive pressure on established network or “legacy” carriers, by offering fares at prices that legacy carriers find it difficult to match and still cover their fixed costs. This paper reports how two medium-sized national airlines-Air New Zealand and Air Canada-have coped with the low-cost threat by, in effect, turning their fixed costs into profit centres. Features such as full regional networks, long-haul connections, frequent flyer programs, membership in global alliances, lounges and business class cabins can be bundled into products which can be marketed and sold profitably to business and even some leisure travellers, and which cannot be easily replicated by low-cost carriers. Although not panaceas, the innovations of Air New Zealand and Air Canada to the competition they face in their domestic and trans-border markets demonstrate the possibility of an effective legacy carrier response to the low-cost carrier business model.     

Carrier collaboration with endogenous networks: Or,the limits of what carrier collaboration can achieve under antitrust immunity

Airlines maintain complex networks that are to large extents complementary. Therefore, some passengers need to change aircraft and airlines to fly from their origin to their final destination. The present study captures pricing problems in terms of double marginalization but goes one step further by incorporating network choices. The model involves a two-stage game with two carriers who choose their complementary networks in the first stage and fares in the second stage. Each carrier's network involves one or two links that are distributed geographically or distributed in time. If both carriers maintain two links, then transfer passengers can choose between two alternative connections which they consider as imperfect substitutes. There are only transfer passengers, and maintaining a link is costly. The analysis reveals that carrier collaboration and antitrust immunity can eliminate double marginalization and create incentives to extend networks. Our results indicate that the scope for the improvement of carrier networks via antritrust immunity can be rather limited relative to the social desirability of more extensive carrier networks. A possible policy lesson is that airlines should be granted antitrust immunity conditional on network expansion and/or frequency obligations.     

Freight distribution in megacities: Perspectives of shippers,logistics service providers and carriers

We analyse the opinions of shippers, logistic service providers (LSPs) and carriers related to regulations and issues faced by these companies regarding freight distribution in megacities, and the logistical performance measures likely affected by those regulations and issues. We present a review of the freight distribution literature focusing on a large number of freight distribution aspects, such as regulatory, collaborative, environmental, logistical and risk. We also investigate some logistical performance indicators adopted by the companies. Subsequently, we conduct a survey with 147 companies working in the São Paulo Metropolitan Region (SPMR). We use multivariate analysis of variance to assess the logistical performance indicators and non-linear canonical correlation analysis to identify the most relevant freight distribution attributes. The results that the majority of carriers are located inside the SPMR and efficiently handle these issues better than others actors. The lack of collaboration, cargo theft, traffic congestion and some regulations affect the LSP’s logistical performance. Moreover, the actors perceive regulatory aspects, mainly traffic congestion, and a lack of security for deliveries in unsafe areas as the significant issues for deliveries in megacities.     

Combinatorial clock-proxy exchange for carrier collaboration in less than truck load transportation

A carrier collaboration problem in less-than-truck load transportation is considered, where multiple carriers exchange their pickup and delivery requests in order to improve their operational efficiency. We extend the clock-proxy auction proposed by Ausubel et al. (2006) to a combinatorial clock-proxy exchange for the problem. This mechanism combines the price discovery of the clock exchange designed based on Lagrangian relaxation with the efficiency of the proxy exchange determined based on the information observed in the clock phase. Numerical experiments on randomly generated instances demonstrate the necessity of the proxy phase and the effectiveness of the clock-proxy exchange.     

Predicting truck driver turnover

We propose a decision tool for truckload carriers that can help control driver turnover rates. Our approach is to use an existing econometric method, along with the drivers’ work data, to predict the quit probability of each driver on a weekly basis, so that carriers can identify a subset of drivers who are “about to quit” in a timely manner. Empirical results from two case studies indicate that our approach does a nice job of predicting driver exits, and that it may become a useful management decision tool. Our method was recently adopted by two US truckload carriers.     

The ASEAN multilateral agreement on air services: En route to open skies?

The ten members of the Association of Southeast Asian Nations recently adopted a Multilateral Agreement on Air Services that seeks to liberalize market access and ownership and control requirements for air carriers in the region. The Agreement is a precursor to an eventual Single Aviation Market arrangement targeted for 2015. This article analyzes the key provisions of the Agreement and identifies the factors that will likely impact on the future SAM. In particular, there is uncertainty as to whether the SAM will go beyond third, fourth and fifth freedom relaxations to include important seventh freedom rights as well as more permissive ownership and control structures for air carriers. There are also lingering concerns over the loss of state sovereignty impacting on attempts to harmonize safety and technical standards, aviation security and competition policy.     

Career and collaboration patterns in tourism research

Research collaboration has become an important characteristic of contemporary academia and is of prime importance for the academic career opportunities of young scholars. For the purposes of this study research collaboration is a formal manifestation of intellectual collaboration in scientific research and involves the participation of two or more authors in the production of a joint publication. The paper reports the findings of a quantitative online survey sent to tourism scholars to explore their career and collaboration patterns in co-authored publications in tourism research. The results indicate that there are divergent perspectives on research collaboration and that collaboration characteristics change as scholars progress through their careers. The paper proposes a research career lifecycle to explain the patterns in tourism research collaboration.     

Collaborative Tourism Planning: A Case Study of Cusco,Peru

This research examines issues concerning the collaborative approach towards tourism planning, with a focus on Cusco, Peru. The research begins with a review of key themes related to collaborative tourism planning, and then explores four issues in relation to collaborative tourism planning in Cusco. These are the vision of tourism development among tourism stakeholders; collaboration and coordination between the multiple parties involved in tourism; input from the tourism industry and other interest groups in tourism planning; and constraints to and facilitators of collaboration and coordination. The research indicates that despite an awareness of the benefits of collaboration in tourism planning generally, collaboration is not yet a major part of the tourism development process in Cusco. The main reasons for the lack of collaboration are outlined using the views of the main stakeholders, as well as suggestions for ways in which future collaboration can be developed.     

The economic viability of long-haul low cost operations: Evidence from the transatlantic market

The recent strong performance of long-haul low-cost carriers AirAsia X and JetStar have re-raised the question of the long-term feasibility of long-haul low-cost operations. For the first time, this study contains a detailed financial assessment of low-cost operations on the transatlantic market using best-in class aircraft technology, the Boeing 787. The study's main findings demonstrate how challenging the successful running of a European long-haul low-cost carrier can be. In particular, on-going operating profit appears to be very sensitive to variations in demand and fuel prices, despite the use of new, highly efficient B787s. The findings show any prospective long-haul low-cost carrier that pursuing a demand focussed network strategy can ensure financial viability. This involves the creation of higher seating densities, higher cargo revenues and additional ancillary revenues.     

Divided we stand: institutional collaboration in tourism planning and development in the Central Region of Ghana

This research is an exploratory study that examines collaboration at the institutional level in the tourism sector of the Central Region, Ghana. The research begins with a review of the key issues related to collaboration in tourism planning and development followed by an extensive exploration of three main issues related to institutional collaboration in tourism in the Central Region. The three main issues are the vision of tourism development shared among stakeholders, collaboration and coordination within the public sector and between the public and private sectors and the factors that constrain and facilitate collaboration and coordination. Using extensive interviews with key stakeholders and reviewing policy documents, the research indicates low levels of collaboration between tourism institutions both within the public sector and across the public–private sectors. This is notwithstanding a shared awareness of the benefits of collaboration among all actors. The research thus contributes interesting insights into the politics of collaboration in tourism destinations. Given tourism's contribution to the Ghanaian economy, it is imperative that efforts are made towards improving the levels of collaboration and coordination between tourism agencies and institutions.     

Organizational sustainability in transportation planning: Evaluation of multi-jurisdictional agency collaboration

Although significant effort is being made in addressing infrastructure design, construction, operations, and maintenance, there is the need for assessing organizational sustainability within transportation planning. Transportation planners have identified coordination and collaboration as fundamental steps in addressing issues related to transportation network planning and sustainability initiatives. This research explores multi-jurisdictional collaboration between agencies using a case study on Pennsylvania Metropolitan/Rural Planning Organizations (MPOs/RPOs) and non-designated areas. The agencies are surveyed and the results are analyzed using a network analysis software, Gephi. In order to compare the collaboration network analysis (survey results) to influential factors, such as geographic adjacency and geographic proximity (reflective of transportation networks), GIS is used in combination with Gephi to complete geographical network analyses. The three analyses are compared using average degree, density, and average path length. The results indicate that the MPOs, RPOs, and non-designated areas within the state of Pennsylvania are collaborating, on average, beyond the geographical adjacency but below the level of geographical proximity network. In addition, email and phone communication forms are the most widely used for high frequency connection while face-to-face meetings are more likely for biannual and annual collaboration. The results of this study serve as a foundation for measuring and monitoring multi-jurisdictional collaboration to promote sustainable organizational planning in transportation.