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A mixed logit based valuation of frequency in civil aviation from SP-data

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  • Lijesen, Mark G.

Abstract

Passengers valuate frequency in air travel positively because it enhances their chances of arriving at their desired time. The valuation of frequency is therefore related to the time of arrival of flights. We develop a framework to link frequency and time of arrival. We use data from a stated preference survey to find customer valuations, adopting the random parameters logit approach to account for heterogeneity. Our empirical results are pretty much in line with those brought forward by other empirical studies, using revealed preference data. Our outcomes suggest that westbound long-haul leisure passengers in general prefer flights with afternoon arrivals and that the majority of these travellers prefer arriving before their desired arrival time over arriving after their desired arrival time. This implies that flights should not be spaced equally over time, but be biased towards arriving earlier.

Suggested Citation

  • Lijesen, Mark G., 2006. "A mixed logit based valuation of frequency in civil aviation from SP-data," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(2), pages 82-94, March.
    • Handle: RePEc:eee:transe:v:42:y:2006:i:2:p:82-94
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    Cited by:

    1. Paul Koster & Eric Pels & Erik Verhoef, 2016. "The User Costs of Air Travel Delay Variability," Transportation Science, INFORMS, vol. 50(1), pages 120-131, February.
    2. de Palma, André & Ordás Criado, Carlos & Randrianarisoa, Laingo M., 2018. "When Hotelling meets Vickrey. Service timing and spatial asymmetry in the airline industry," Journal of Urban Economics, Elsevier, vol. 105(C), pages 88-106.
    3. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2023. "Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-24, December.
    4. Bilotkach, Volodymyr & Mueller, Juergen & Németh, Adél, 2014. "Estimating the consumer welfare effects of de-hubbing: The case of Malév Hungarian Airlines," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 66(C), pages 51-65.
    5. Cho, Woohyun & Windle, Robert J. & Dresner, Martin E., 2017. "The impact of operational exposure and value-of-time on customer choice: Evidence from the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 455-471.
    6. Zhang, Yahua, 2012. "Are Chinese passengers willing to pay more for better air services?," Journal of Air Transport Management, Elsevier, vol. 25(C), pages 5-7.
    7. Silva, Hugo E. & Verhoef, Erik T. & van den Berg, Vincent A.C., 2014. "Airlines’ strategic interactions and airport pricing in a dynamic bottleneck model of congestion," Journal of Urban Economics, Elsevier, vol. 80(C), pages 13-27.
    8. Yanhao Wei, 2018. "Airline networks, traffic densities, and value of links," Quantitative Marketing and Economics (QME), Springer, vol. 16(3), pages 341-370, September.
    9. Marcucci, Edoardo & Gatta, Valerio, 2011. "Regional airport choice: Consumer behaviour and policy implications," Journal of Transport Geography, Elsevier, vol. 19(1), pages 70-84.
    10. Koster, Paul & Kroes, Eric & Verhoef, Erik, 2011. "Travel time variability and airport accessibility," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1545-1559.
    11. Lijesen, M.G., 2010. "Empirical applications of spatial competition; an interpretative literature review," Serie Research Memoranda 0006, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    12. Valido, Jorge & Socorro, M. Pilar & Medda, Francesca, 2020. "Airport capacity and entry deterrence: Low cost versus full service airlines," Economics of Transportation, Elsevier, vol. 22(C).
    13. Kjaer, Trine & Gyrd-Hansen, Dorte, 2008. "Preference heterogeneity and choice of cardiac rehabilitation program: Results from a discrete choice experiment," Health Policy, Elsevier, vol. 85(1), pages 124-132, January.
    14. Jorge Valido & M. Pilar Socorro & Francesca Medda, 2013. "DYPES: Vertical differentiation, schedule delay and entry deterrence: Low cost vs. full service airlines," Working Papers 2013-05, FEDEA.
    15. Chen, Kee-Kuo & Ho, Hui-Ping & Chang, Ching-Ter, 2015. "Estimating attributes importance for container shipping industry by closing the listening gap with maximum convergent validity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 145-163.
    16. Zhenjiang Shen & Xiaobai A Yao & Mitsuhiko Kawakami & Ping Chen, 2011. "Simulating Spatial Market Share Patterns for Impacts Analysis of Large-Scale Shopping Centers on Downtown Revitalization," Environment and Planning B, , vol. 38(1), pages 142-162, February.
    17. Cho, Woohyun & Min, Dong-Jun, 2018. "Longitudinal examination of passenger characteristics among airline types in the US," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 11-19.
    18. Keumi, Chikako & Murakami, Hideki, 2012. "The role of schedule delays on passengers’ choice of access modes: A case study of Japan’s international hub airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 1023-1031.

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