Download or read book Air Travel Demand and Pricing Behavior written by Junwook Chi and published by LAP Lambert Academic Publishing. This book was released on 2011 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: Airline industry has played an important role in transporting passengers in the U.S. In terms of the number of passengers, air service recorded the largest market share among the for-hire passenger transportation services in 2004. This study addresses three important issues in the U.S. airline industry: demand, pricing behaviors, and carrier's price strategies. The first essay discusses the demand for U.S. air-passenger service by employing macro and micro demand models. The second essay focuses on pricing behaviors of the U.S. air carriers. Using estimated airfares, major determinants of airfares are evaluated. Finally, the third essay extends the price model of air-passenger service by categorizing carriers' price strategies.

Download or read book Pricing Behaviour and Non Price Characteristics in the Airline Industry written by James Peoples and published by Emerald Group Publishing. This book was released on 2012-01-03 with total page 428 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provokes the reader to think critically about the emergence of corporate styles of governance, management and leadership in higher education institutions (HEIs) and ways in which the demands of public management and the knowledge economy has shaped and re-shaped scholarly work and identity.

Download or read book Airline Economics written by George W. James and published by Free Press. This book was released on 1982 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Extracting Airline and Passenger Behavior from Online Distribution Channels written by Stacey M. Mumbower and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the airline industry has drastically changed since its deregulation in 1978, publically available sources of data have remained nearly the same. In the U.S., most researchers and decision-makers rely on government data that contains highly aggregated price information (e.g., average quarterly prices). However, aggregate data can hide important market behavior. With the emergence of online distribution channels, there is a new opportunity to model air travel demand using detailed price information. :This dissertation uses online prices and seat maps to build a dataset of daily prices and bookings at the flight-level. Several research contributions are made, all related to leveraging online data to better understand airline pricing and product strategies, and how these strategies impact customers, as well as the industry in general. One major contribution is the finding that the recent product debundling trend in the U.S. airline industry has diluted revenues to the U.S. Airport and Airways Trust Fund by at least five percent. :Additionally, several new behavioral insights are found for one debundling trend that has been widely adopted by U.S. airlines: seat reservation fees. Customers are found to be between 2 and 3.3 times more likely to purchase premium coach seats (with extra legroom and early boarding privileges) when there are no regular coach window or aisle seats that can be reserved for free, suggesting that the ability of airlines to charge seat fees is strongly tied to load factors. Model results are used to explore optimal seat fees and find that an optimal static fee could increase revenues by 8 percent, whereas optimal dynamic fees could increase revenues by 10.2 percent. :Another major contribution is in modeling daily bookings and estimating price elasticities using ordinary least squares (OLS) regression without correcting for price endogeneity and two-stage least squares (2SLS) regression, which corrects for endogeneity. Results highlight the importance of correcting for price endogeneity (which is not often done in air travel applications). In particular, models that do not correct for endogeneity find inelastic demand estimates whereas models that do correct for endogeneity find elastic demand estimates. This is important, as pricing recommendations differ for inelastic and elastic models. A set of instrumental variables are found to pass validity tests and can be used to correct for price endogeneity in future models of daily flight-level demand.

Download or read book Discrete Choice Modelling and Air Travel Demand written by Laurie A. Garrow and published by Routledge. This book was released on 2016-05-23 with total page 307 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, airline practitioners and academics have started to explore new ways to model airline passenger demand using discrete choice methods. This book provides an introduction to discrete choice models and uses extensive examples to illustrate how these models have been used in the airline industry. These examples span network planning, revenue management, and pricing applications. Numerous examples of fundamental logit modeling concepts are covered in the text, including probability calculations, value of time calculations, elasticity calculations, nested and non-nested likelihood ratio tests, etc. The core chapters of the book are written at a level appropriate for airline practitioners and graduate students with operations research or travel demand modeling backgrounds. Given the majority of discrete choice modeling advancements in transportation evolved from urban travel demand studies, the introduction first orients readers from different backgrounds by highlighting major distinctions between aviation and urban travel demand studies. This is followed by an in-depth treatment of two of the most common discrete choice models, namely the multinomial and nested logit models. More advanced discrete choice models are covered, including mixed logit models and generalized extreme value models that belong to the generalized nested logit class and/or the network generalized extreme value class. An emphasis is placed on highlighting open research questions associated with these models that will be of particular interest to operations research students. Practical modeling issues related to data and estimation software are also addressed, and an extensive modeling exercise focused on the interpretation and application of statistical tests used to guide the selection of a preferred model specification is included; the modeling exercise uses itinerary choice data from a major airline. The text concludes with a discussion of on-going customer modeling research in aviation. Discrete Choice Modelling and Air Travel Demand is enriched by a comprehensive set of technical appendices that will be of particular interest to advanced students of discrete choice modeling theory. The appendices also include detailed proofs of the multinomial and nested logit models and derivations of measures used to represent competition among alternatives, namely correlation, direct-elasticities, and cross-elasticities.

Download or read book The Pricing Behavior of Domestic Airlines in the Great Recession written by Charles Budney and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The goal of this paper is to analyze the relationship between an airlines market share on a route and its pricing decisions on that route under recessionary economic conditions. The airline industry has a unique structure. Each route an airline chooses to fly is itself a market in which it is competing against other airlines. In different markets, the same airline may be a different type of competitor. By looking at data from the Department of Transportation's Domestic Airline Consumer Airfare Report, I examine changes in airline pricing by type of airfare as well as by market share. I use a number of tools to examine the impact of market share on pricing during the recession as well as the impact on market share itself during the recession. Together, these allow me to form a more complete analysis of the behavior of airlines during recessionary periods. My results show that airlines aggressively cut fares during the recession, while market shares remained stable throughout.

Download or read book Introduction to Air Transport Economics written by Bijan Vasigh and published by Routledge. This book was released on 2016-05-06 with total page 513 pages. Available in PDF, EPUB and Kindle. Book excerpt: Introduction to Air Transport Economics: From Theory to Applications uniquely merges the institutional and technical aspects of the aviation industry with their theoretical economic underpinnings. In one comprehensive textbook it applies economic theory to all aspects of the aviation industry, bringing together the numerous and informative articles and institutional developments that have characterized the field of airline economics in the last two decades as well as adding a number of areas original to an aviation text. Its integrative approach offers a fresh point of view that will find favor with many students of aviation. The book offers a self-contained theory and applications-oriented text for any individual intent on entering the aviation industry as a practicing professional in the management area. It will be of greatest relevance to undergraduate and graduate students interested in obtaining a more complete understanding of the economics of the aviation industry. It will also appeal to many professionals who seek an accessible and practical explanation of the underlying economic forces that shape the industry. The second edition has been extensively updated throughout. It features new coverage of macroeconomics for managers, expanded analysis of modern revenue management and pricing decisions, and also reflects the many significant developments that have occurred since the original’s publication. Instructors will find this modernized edition easier to use in class, and suitable to a wider variety of undergraduate or graduate course structures, while industry practitioners and all readers will find it more intuitively organized and more user friendly.

Download or read book Studies in Travel Demand written by Ronald E. Miller and published by . This book was released on 1965 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Sell Up Potential of Airline Demand written by Catherine H. Bohutinsky and published by . This book was released on 1990 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: Differential pricing of air transportation plays an important role in the current theories of airline seat inventory management. The ability to recognize those passengers willing to "sell up". or pay more for a seat on a given flight is also important, yet it has received little research attention. The proper detection and booking management of these passenger types can allow air carriers to realize higher flight revenues. This dissertation begins with an overview of airline pricing policies and seat inventory control management practices. Current fare structures and fare class designations are described in detail. Airline demand and consumer utility measures are then presented. Consumer behavior during the booking process. particularly in relation to sell up behavior, is discussed. Price elasticities of demand also play an important role in the prediction of sell up behavior. An in-depth description of sell up and its measurement follow. Once specific flights have been identified as having sell up potential, a sell up strategy can be implemented. Methods of testing the revenue benefits/costs of a particular sell up strategy were developed and used in an actual airline environment. A study consisting of a preliminary sell up test followed by an expanded study incorporating different sell up strategies was performed. Revenue results of the sell up strategies are presented and the impacts of each policy are discussed. Price elasticities of demand were estimated for individual fare classes. In general, sell up was found to be flight specific and more prevalent in the highest two fare classes (in terms of fare values) while being almost non-existent in lower fare classes.

Download or read book The Global Airline Industry written by Peter Belobaba and published by John Wiley & Sons. This book was released on 2015-07-06 with total page 536 pages. Available in PDF, EPUB and Kindle. Book excerpt: Extensively revised and updated edition of the bestselling textbook, provides an overview of recent global airline industry evolution and future challenges Examines the perspectives of the many stakeholders in the global airline industry, including airlines, airports, air traffic services, governments, labor unions, in addition to passengers Describes how these different players have contributed to the evolution of competition in the global airline industry, and the implications for its future evolution Includes many facets of the airline industry not covered elsewhere in any single book, for example, safety and security, labor relations and environmental impacts of aviation Highlights recent developments such as changing airline business models, growth of emerging airlines, plans for modernizing air traffic management, and opportunities offered by new information technologies for ticket distribution Provides detailed data on airline performance and economics updated through 2013

Download or read book The Theory and Practice of Revenue Management written by Kalyan T. Talluri and published by Springer Science & Business Media. This book was released on 2006-02-21 with total page 731 pages. Available in PDF, EPUB and Kindle. Book excerpt: Revenue management (RM) has emerged as one of the most important new business practices in recent times. This book is the first comprehensive reference book to be published in the field of RM. It unifies the field, drawing from industry sources as well as relevant research from disparate disciplines, as well as documenting industry practices and implementation details. Successful hardcover version published in April 2004.

Download or read book The Airline Industry written by and published by Emerald Group Publishing. This book was released on 2006 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Airline industry has been under increasing pressure recently, from the increased competition of low-cost airlines and the terrorist events of 2001 to name but a few. Various US airlines, including Delta and Northwest, have been declared bankrupt, oil prices have soared, and seat prices are still being forced down, the supply far outweighing the demand. This e-book looks at recent case studies of airlines in crisis (Continental Airlines), and also airlines which have excelled at expansion during this turbulent time such as Easyjet and Ryanair, and offers examples of successful strategies previously used. The collection also features interviews with high-profile figures from airlines such as Go!, Qatar Airways and SWISS International Airlines.

Download or read book Air Transport Liberalization written by Matthias Finger and published by Edward Elgar Publishing. This book was released on 2017-12-29 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: This groundbreaking book offers a critical and wide-ranging assessment of the global air transport liberalization process over the past 40 years. This compilation of world experts on air transport economics, policy, and regulation is timely and significant, considering that air transport is currently facing a series of new challenges due to technological changes, the emergence of new markets, and increased security concerns.

Download or read book Pricing written by United States. Department of Transportation. Secretary's Task Force on Competition in the U.S. Domestic Airline Industry and published by . This book was released on 1990 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Air Transport and Tourism written by M.R. Dileep and published by Routledge. This book was released on 2021-09-30 with total page 566 pages. Available in PDF, EPUB and Kindle. Book excerpt: Air Transport and Tourism: Interrelationship, Operations and Strategies is a comprehensive textbook covering all major aspects of air transport from operational and managerial perspectives, as well as exploring the intricate relationship that exists between the air transport and tourism industries. The book introduces and provides in-depth coverage of the complexities of the airline industry and the tourism industry and the ways in which they are connected and impact on each other, for example, the destination–airport–airline nexus, and the roles of air transport and airlines in tourism and vice versa. Emphasis is placed on current and future trends, the impact of COVID-19, sustainability and environmental challenges throughout. Comprehensive coverage of airline operations, strategic management and planning, airport operations and air transport information technology is also provided, offering a practical viewpoint on these vital aspects of the subject. This will be the ideal introductory textbook for students of tourism and hospitality studying courses in aviation and air travel.

Download or read book Discrete Choice Modelling and Air Travel Demand written by Laurie A. Garrow and published by Routledge. This book was released on 2016-05-23 with total page 317 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, airline practitioners and academics have started to explore new ways to model airline passenger demand using discrete choice methods. This book provides an introduction to discrete choice models and uses extensive examples to illustrate how these models have been used in the airline industry. These examples span network planning, revenue management, and pricing applications. Numerous examples of fundamental logit modeling concepts are covered in the text, including probability calculations, value of time calculations, elasticity calculations, nested and non-nested likelihood ratio tests, etc. The core chapters of the book are written at a level appropriate for airline practitioners and graduate students with operations research or travel demand modeling backgrounds. Given the majority of discrete choice modeling advancements in transportation evolved from urban travel demand studies, the introduction first orients readers from different backgrounds by highlighting major distinctions between aviation and urban travel demand studies. This is followed by an in-depth treatment of two of the most common discrete choice models, namely the multinomial and nested logit models. More advanced discrete choice models are covered, including mixed logit models and generalized extreme value models that belong to the generalized nested logit class and/or the network generalized extreme value class. An emphasis is placed on highlighting open research questions associated with these models that will be of particular interest to operations research students. Practical modeling issues related to data and estimation software are also addressed, and an extensive modeling exercise focused on the interpretation and application of statistical tests used to guide the selection of a preferred model specification is included; the modeling exercise uses itinerary choice data from a major airline. The text concludes with a discussion of on-going customer modeling research in aviation. Discrete Choice Modelling and Air Travel Demand is enriched by a comprehensive set of technical appendices that will be of particular interest to advanced students of discrete choice modeling theory. The appendices also include detailed proofs of the multinomial and nested logit models and derivations of measures used to represent competition among alternatives, namely correlation, direct-elasticities, and cross-elasticities.

Download or read book Flight Delays Capacity Investment and Welfare Under Air Transport System Equilibrium written by Bo Zou (Writer on transportation) and published by . This book was released on 2012 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: Infrastructure capacity investment has been traditionally viewed as an important means to mitigate congestion and delay in the air transportation system. Given the huge amount of cost involved, justifying the benefit returns is of critical importance when making investment decisions. This dissertation proposes an equilibrium-based benefit assessment framework for aviation infrastructure capacity investment. This framework takes into consideration the interplays among key system components, including flight delay, passenger demand, flight traffic, airline cost, and airfare, and their responses to infrastructure capacity investment. We explicitly account for the impact of service quantity changes on benefit assessment. Greater service quantity is associated with two positive feedback effects: the so-called Mohring effect and economies of link/segment density. On the other hand, greater service quantity results in diseconomies of density at nodes/airports, because higher traffic density at the airport leads to greater airport delays. The capacity-constrained system equilibrium is derived from those competing forces. Two approaches are developed to investigate air transport system equilibrium and its shift in response to infrastructure capacity expansion. In Chapter 2, we first view the system equilibrium from the airline competition perspective. We model airlines' gaming behavior for airfare and frequency in duopoly markets, assuming that airlines have the knowledge of individuals' utility structure while making decisions, and that delay negatively affects individuals' utility and increases airline operating cost. The theoretical airline competition model developed in Chapter 2 provides analytical insights into the interactions among various system components. Under a symmetric Nash equilibrium, we find that the presence of flight delay increases passenger generalized cost and discourages air travel. Airlines would not pass delay cost entirely onto passengers through higher fare, but also account for the impact of service degradation on passenger willingness-to-pay and consequently passenger demand. To avoid exorbitant flight delays, airlines would use larger aircraft, meanwhile taking advantage of economies of aircraft size. The resulting unit cost reduction partially offsets operating delay cost increase. The equilibrium shift triggered by capacity expansion reduces both schedule delay and flight delay, leading to lower passenger generalized cost and higher demand, despite slightly increased airfare. Airlines will receive larger profit, and consumer welfare will increase, as a result of the expansion. Although delay reduction is less than expected because of induced demand, the overall benefit, which encompasses reduction in both schedule delay and flight delay, would be much greater than estimated from a purely delay-based standpoint. The equilibrium analysis can be alternatively approached from a traveler-centric perspective. The premise of an air transport user (i.e. traveler) equilibrium is that each traveler in the air transportation system maximizes his/her utility when making travel decisions. The utility depends upon market supply and performance characteristics, consisting of airfare, flight frequency, and flight delay. The extent of airline competition is implicitly reflected in the determination of airfare and flight frequency. Given the limited empirical evidence of the delay effect on air transportation system supply, two econometric models for airfare and flight frequency are estimated in Chapter 3. We find positive delay effect on fare, which should be interpreted as the net effect of airlines' tendency to pass delay cost to passengers while also compensating for service quality degradation. Higher delay discourages carriers from scheduling more flights on a segment. Both delay effects, however, are relatively small. The estimated fare and frequency models, together with passenger demand and airport delay models presented in Chapter 4, are integrated to formulate the air transport user equilibrium as fixed point and variational inequality problems. We prove that the equilibrium existence is guaranteed; whereas equilibrium uniqueness cannot be guaranteed. We apply the user equilibrium to a fully connected, hypothetical network with the co-existence of direct and connecting air services. Using a simple, heuristic algorithm, we find that the equilibrium is insensitive to initial demand values, suggesting that there may be a single equilibrium for this particular model instance. Hub capacity investment attracts spoke-spoke passengers from non-stop routes, and generates new demand on hub-related routes. At the market level, hub capacity expansion would result in greater total demand and consequently passenger benefits in almost all markets--except for ones where a predominant portion of passengers choose non-stop routes due to extremely high circuity for one-stop travel. In the latter set of markets, after capacity expansion passenger demand and benefits would be both reduced. This counter-intuitive result carries important implications that capacity increase does not necessarily benefit everyone in the system. Similar to the findings from the airline competition model, with changes in flight delay, schedule delay, airfare, and total demand, the user equilibrium model yields much higher passenger benefits from capacity investment than the conventional method; whereas hub delay saving is offset by traffic diversion and induced demand. With continuous capacity investment, the air transportation network will witness substantial changes in service supply and traffic patterns.