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Do what low cost airlines have done for years - introduce flexible transport price to balance utilization across popular and less popular departures. The ultimate self-service offering!

A yield solution running on your web-site, powered by arl-shipping.com - see how this will work: download  ARL e-Yield flier.

The full yield solution encompassing e-Schedule, e-Quote, e-Booking and market driven auto-pricing. Can be used for setting up an independently branded low-cost-airline-style booking platform with dynamic pricing for higher and more balanced utilization, operating in parallel with current commercial organisation. Find implementation scenario for your type of the company on Process page.

ARL e-Yield is the fourth module in ARL's commercial e-business package, which forms a complete yield solution.

Get onside or off-site assistance while implementing an IT supported low-cost-carrier-style business, whether it is in the form of presentations, pilot workshop or class room style training, or get an onsite consultant to work as part of your implementation team. Or take ownership yourself and get offside support from the ARL team. We are here to make it work for you!

See more about related products:

  • e-Schedule: bring your schedules online. Take the first step to offering e-business for your transport service.
  • e-Quote: let your quote desk spend their time on something more valuable than reading up standard rates from a spreadsheet to your customer on the phone.
  • e-Book: offer your customers self-booking on the internet. Let your IT platform manage your capacity.

LCC FAQ - the Low-Cost-Carrier Model for Transportation Companies

A list of common concerns and issues in the cargo transport industry, when applying an LCC model.

For how long is a quote valid?

Freight quotes have instant validity due to the fact that market conditions -which are the assumptions for the current quote- may be changing. The customer is presented with a freight quote and need to confirm his booking right away, if to accept the quote. If the customer doesn't accept the freight quote by booking cargo, pricing for the same transport may be quoted differently the next time the customer ask, due to changing market conditions.

How can I give space guarantee?

You can give space guarantee in return for your customer's cargo guarantee! If the customer doesn't show up with the cargo prior to departure service point closing, you still get paid, as it is the customer's responsibility to bring the cargo on time (or to have the cargo available for warehouse loading, if you offer door-door services). It is only reasonable, that in response to the customer's cargo guarantee, you give space guarantee!

Can I still charge separately for surcharges?

Yes. It is commonly accepted by LCCs to make external costs -like fees to external parties like authorities- visible for the customer, as this will also make the actual transport price visible. It is, however, also commonly expected by customers, that the total price is easily accessible. As basis pricing is flexible, it is no longer practical to separate basis price from surcharges for the reason of keeping the basis freight frozen. Simplicity is king!How are exceptions managed?Exceptions are generally not supported. If some exception scenarios, which entails additional effort on your side, or provides additional value to the customer, are offered to the customer, then the customer must pay extra for such exceptions. In the LCC industry, exceptions like flexible tickets, meals, priority boarding, extra leg space hardly ever comes for free!

Can't the customer call me?

The clean LLC model entails full self-service, even there are examples of human customer service offerings, like e-mails, online chat or call centers. It is commonly accepted that aggressive pricing comes at the 'price' of less personalized service. You can consider a centralized end-customer service center only supporting a single or a few languages, rather than an 'expensive' distributed and highly localized customer service function.

Can I still work with commercial intermediaries (like forwarders)?

Yes. Intermediaries are also customers, and all customers are equal. According to the LCC model, no commission or kick-back are offered to intermediaries. All customers have access to the same quotes and are treated the same way, under the same circumstances. This means that the intermediary no longer can charge for access to the transport provider -as the transport provider already offer his transport service to all customers- and the intermediary will need to charge for other values added to the transport; we all know there are many to offer!

What about other transport providers re-branding my transport services (like NVOs)?

A customer is a customer. If f.ex. an NVO buys capacity from you at a time when price is low -due to market conditions at the time of booking-, and re-sell the same capacity at a higher price -due to market conditions at the time of re-selling-, this reflects that the NVO has taken a risk, and might in some cases not be able to re-sell all the capacity booked (and prepaid) with you. All customers are welcome.

How are no-shows handled?

If you accept bookings only with upfront pre-payment, it is the customer's responsibility to bring the cargo on time (or to have the cargo available for warehouse loading, if you offer door-door services). If the cargo is not there in time, the customer need to re-book (and re-pay) for the transport service. You can consider to offer a discounted price for non-guaranteed space, so you can fill no-show space with paying cargo.How do I give special customer rates?All customers get same quote under the same conditions. The benefit of large volumes from the customer's perspective are harvested by the customer by a combination of getting the needed space many times -on popular departures- and an aggressive price many times -on less popular departures.

How come I can book without login?

As all customers anyhow are treated the same way under the same circumstances, and as payment is done as part of the booking process, there is no point in asking for login prior to giving quotes and accepting bookings. Administration of logins are against the principle of simplicity and of self-service, which benefits both the customer and yourself. After a booking is accepted, it is the customer -not you-, who has the responsibility for showing up with the cargo prior to closing -or to have the cargo available for warehouse loading, if you offer door-door services-. Before the booking, all information provided by you can be considered public knowledge.

Which documents are issued?

After bookings have been confirmed, a booking confirmation is e-mailed to the customer. This booking confirmation serves as the proof of booking acceptance and space guarantee, and serves as the customer's documentation, that the transport is planned.

Can I still offer extra services to my customer?

Yes you can, as long as these services can be managed efficiently and can be valued and paid for separately. Imagine f.ex. that you charge the customer for early availability of cargo at destination -say 4 hours prior to regular availability. This entails additionals value for the customer, as he f.ex. can meet a store sales. It also entails additional costs on your side, as you have to plan for priority unloading at cargo destination. So it is only reasonable that the customer pays an extra fee for this value-add service.

Will my customers still be satisfied even they get less service?

Your customers will be satisfied if you deliver what you promise. It is all about setting expectations and meeting expectations. If you set your customers' expectation high and deliver low, you will have a mismatch and dissatisfied customers. If your transport and customer service is crystal clear to the customer, and you deliver exactly that, your customers will be satisfied. Let us use an example: Say the cargo availability at destination is Thursday at 16.00 hours. Your customer has specifically de-selected a Euro 50 value-add offer for early availability at 12.30. Will your customer be disappointed that he can't pick up his cargo when his truck arrives at 13.45? You know the answer: He will be perfectly happy as expectations and reality are aligned.

How will my utilization be more balanced by using flexible pricing?

Assume you have a Saturday and a Monday departure from the same service point offering a certain transport at the same price. The Monday departure is always full because it is a working day for the customer. The Saturday departure is never full because it is weekend. Imagine that you introduce differentiated pricing depending on market forecast and actual booking volume/ utilization; Monday is higher, Saturday is lower priced. This will motivate some customers with price sensitive transports, to book on Saturday instead of Monday. You will have even (=balanced) utilization across popular and less popular departures if the price differentiation is correct. If cargo volumes in the market is definite, you might be able to operate the same service with the same total amount of cargo with less capacity transport vehicles than before; you might be able to free up transport assets to enter new markets without any further investments!

How do I handle weight limitations on my transport vehicles?

If you operate a transport service in a market with weight constraints (where you might need to say no to more cargo despite empty space, because you have reached your weight maximum) you are encouraged to differentiate your transport price depending on weight. F.ex. instead of always quoting the same for a 20DRY, offer two -or more- products: 20DRY-LIGHT and 20DRY-HEAVY- with different prices. This will encourage more light cargo and 'burden' the customer with heavy cargo, who potentially will disable you to accept more cargo even you have free capacity.How do I pre-allocate to my VIP customers?You don't. The space guarantee (allocation) is related to the customer accepting the quote at the specific time of giving you his cargo commitment. A long term volume commitment is not sufficient for a space guarantee on popular departures. You can, however, choose to only offer part of your available capacity via the LCC model, and reserve the remaining capacity for contract customers. If your contract customers have downfalls, you can increase the LLC capacity, which will instantly be reflected in the pricing (price will be reduced if capacity is increased/ current utilization decreased).

How can yield be higher, if price is lower?

First of all price is only lower under specific market conditions; if market conditions are different, the price might be higher than the traditional market. If you offer space guarantee (and traditional market doesn't offer space guarantee) a higher price is fine. Secondly the yield is related to a combination of price AND utilization. If you have high utilization, your unit costs are low due to the nature of -high-fixed versus low-variable costs. Thirdly, but operating a LCC model, you are expected to operate efficiently and with a high degree of self-service entailing lower costs at your end. =higher yield!

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