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Key Drivers for Differentiated Airport Passenger Service Charges

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  • Joost Zuidberg

Abstract

Recently, differentiations in airport charges have been the subject of juridical complaints. This study identifies key drivers for differentiated passenger service charges. The results suggest airports tend to apply differentiations in favour of their most important users. This is illustrated by the fact that hub airports are more likely to differentiate between transfer and origin/destination (O/D) passengers, while regional and public service airports tend to apply reduced tariffs for domestic passengers. However, applying charging structures in accordance with the wishes of an airport's most important user(s) may be in accordance with a more market-oriented strategy, leading to profit maximisation. © 2014 LSE and the University of Bath

Suggested Citation

  • Joost Zuidberg, 2014. "Key Drivers for Differentiated Airport Passenger Service Charges," Journal of Transport Economics and Policy, University of Bath, vol. 48(2), pages 279-295, May.
    • Handle: RePEc:tpe:jtecpo:v:48:y:2014:i:2:p:279-295
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    Cited by:

    1. Thomas, Nivea & Jha, Kumar Neeraj, 2022. "Structural efficiency assessment of regional airports: Lessons from India," Utilities Policy, Elsevier, vol. 79(C).
    2. Merkert, Rico & Assaf, A. George, 2015. "Using DEA models to jointly estimate service quality perception and profitability – Evidence from international airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 42-50.
    3. de Wit, Jaap G. & Zuidberg, Joost, 2016. "Route churn: an analysis of low-cost carrier route continuity in Europe," Journal of Transport Geography, Elsevier, vol. 50(C), pages 57-67.
    4. Zuidberg, Joost, 2017. "Exploring the determinants for airport profitability: Traffic characteristics, low-cost carriers, seasonality and cost efficiency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 61-72.

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