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.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/09658564
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Supplemental Notes:
- Abstract reprinted with permission of Elsevier.
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Authors:
- Escobari, Diego
- Publication Date: 2017-9
Language
- English
Media Info
- Media Type: Web
- Features: Appendices; References; Tables;
- Pagination: pp 198-210
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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 10 2017 3:20PM