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Estimating the demand responses for different sizes of air passenger groups

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  • Gillen, David
  • Hasheminia, Hamed

Abstract

This paper investigates the sensitivity of demand for air travel by singleton passengers, couples, and families. It examines how the demand for air travel by these groups is potentially different. In this study, a compound Poisson structure of the demand of different passenger groups is considered, and aggregate demand observations and maximum likelihood procedures are used to decompound the processes and estimate demand sensitivity of each group of customers to price, time, season, and the economic cycle. The methodology is applied to Canadian market data and the results indicate there are significant differences among the different groups of customers.

Suggested Citation

  • Gillen, David & Hasheminia, Hamed, 2013. "Estimating the demand responses for different sizes of air passenger groups," Transportation Research Part B: Methodological, Elsevier, vol. 49(C), pages 24-38.
    • Handle: RePEc:eee:transb:v:49:y:2013:i:c:p:24-38
    DOI: 10.1016/j.trb.2012.11.004
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    Cited by:

    1. Andrés Martínez, María-Encarnación & Alfaro Navarro, José-Luis & Trinquecoste, Jean-François, 2017. "The effect of destination type and travel period on the behavior of the price of airline tickets," Research in Transportation Economics, Elsevier, vol. 62(C), pages 37-43.
    2. Akinyemi, Yingigba Chioma, 2023. "Air cargo demand in Africa: Application of cointegration and error correction modelling techniques," Journal of Air Transport Management, Elsevier, vol. 109(C).
    3. Gillen, David & Hasheminia, Hamed, 2016. "Measuring reliability of transportation networks using snapshots of movements in the network – An analytical and empirical study," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 808-824.

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