A passenger demand model for air transportation in a hub-and-spoke network

This paper develops an air passenger model that deals with city-pair demand generation and demand assignment in a single framework. Using publicly available and regularly collected panel data, the model captures both time series and cross-sectional variation of air travel demand. The empirical analysis finds that pattern of correlations among alternatives can be described by a three-level nested logit model. Fare, frequency, flight time, direct routing, on-time performance, income, and market distance have significant effects on air demand. Correcting for the problem of endogenous air fares using instrumental variables yields more plausible estimates of price sensitivity and value of time.

• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S1366554511000718
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • Abstract reprinted with permission from Elsevier.
• Authors:
  • Hsiao, Chieh-Yu
  • Hansen, Mark
• Publication Date: 2011-11

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 1112-1125
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 47
  • Issue Number: 6
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Air travel; City pairs; Empirical methods; Fares; Forecasting; Hub and spoke systems; Logits; Panel studies; Route choice; Travel behavior; Travel demand; Travel time; Value of time
• Uncontrolled Terms: Price sensitivity
• Subject Areas: Aviation; Planning and Forecasting; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01351796
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 14 2011 11:12AM