Airport, airline and departure time choice and substitution patterns: An empirical analysis

This paper uses the random-coefficients logit methodology that controls for potential endogeneity of prices and allows for general substitution patterns to estimate various demand systems. The estimation takes advantage of an original ticket-level revealed preference data set on travels from the New York City area to Toronto that contains prices and characteristics of not only flight choices but also of all non-booked alternative flights. Consistent with having higher valuations, the authors' results show that travelers buying closer to departure have a higher utility of flying. Moreover, consumers’ heterogeneity decreases as the flight date nears. At the carrier level, the authors identify which carriers have more price-sensitive consumers and which carriers face greater competition. In addition, the results suggest that the authors' multi-airport metropolitan area can be considered as a single market and that JFK and Newark are relatively closer substitutes. Overall, consumers are more willing to switch to alternative carriers than between airports or departure times.

• Record URL:
  https://doi.org/10.1016/j.tra.2017.05.034
• Record URL:
  http://www.sciencedirect.com/science/article/pii/S0965856416300258
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/09658564
• Supplemental Notes:
  • Abstract reprinted with permission of Elsevier.
• Authors:
  • Escobari, Diego
• Publication Date: 2017-9

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; References; Tables;
• Pagination: pp 198-210
• Serial:
  • Transportation Research Part A: Policy and Practice
  • Volume: 103
  • Publisher: Elsevier
  • ISSN: 0965-8564
  • Serial URL: http://www.sciencedirect.com/science/journal/09658564

Subject/Index Terms

• TRT Terms: Airlines; Airports; Consumer preferences; Departure time; Empirical methods; Logits; Revealed preferences
• Geographic Terms: New York (New York); Toronto (Canada)
• Subject Areas: Aviation; Passenger Transportation; Planning and Forecasting;

Filing Info

• Accession Number: 01644381
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 29 2017 10:07AM