How do carriers price connecting flights? Evidence from intercontinental flights from Europe

In civil aviation, hub-and-spoke (HS) networks are used by all large carriers. The importance of this system implies that many travelers use connecting flights. Nevertheless, only scarce knowledge is available on price formation of these trips. In this paper, we focus on the fares of connecting intercontinental flights, with one stop and at least one competing direct flight. We develop a simple model of a HS network, with imperfect substitutability between direct and indirect flights and Cournot competition on every route in the network. We test the model empirically, using reported fares for flights from seven European origins, including the five major airports in Europe, to five non-European destinations. We find that the fare of a connecting flight can be expressed as the weighted average of the fare of its direct competitor, the travel times of both flights its costs and the monetary value of the utility attached to the trip. The weight of the direct fare decreases as product diversity increases.     

Impact of airports on regional accessibility and social development

This study compares the impact that two airports in Norway have on regional accessibility and social development. One of the airports is a small-sized airport that serves a relatively remote region and has direct air services to other regions in Norway but not to the capital city of Oslo or to destinations abroad. The other is a medium-sized airport that serves a relatively accessible region and has direct air services to the capital city of Oslo and to a number of destinations in Norway and abroad. The study compares opinions of residents that live in the respective regions and is based on the findings of a postal survey that was completed by over 2000 residents. The Independent Samples t-test is used to investigate the significance of any differences in opinion. Significant differences were found to reflect the size and scope of services available at the airports and specific characteristics of the regions that they serve. Residents in the more remote region have a significantly higher frequency of travel by air to destinations in Norway but a significantly lower frequency of travel by air to destinations abroad. Trip frequency for holidays is significantly higher in the region that has an airport with direct international air services while trip frequency to access health services is significantly higher in the region that has limited local health services. The airport is significantly more important for resident location and retention in the remoter region.     

Representing pedestrian activity in travel demand models: Framework and application

There have long been calls for better pedestrian planning tools within travel demand models, as they have been slow to incorporate the large body of research connecting the built environment and walking behaviors. Most regional travel demand forecasting performed in practice in the US uses four-step travel demand models, despite advances in the development and implementation of activity-based travel demand models. This paper introduces a framework that facilitates the abilities of four-step regional travel models to better represent walking activity, allowing metropolitan planning organizations (MPOs) to implement these advances with minimal changes to existing modeling systems. Specifically, the framework first changes the spatial unit from transportation analysis zones (TAZs) to a finer-grained geography better suited to modeling pedestrian trips. The MPO's existing trip generation models are applied at this spatial unit for all trips. Then, a walk mode choice model is used to identify the subset of all trips made by walking. Trips by other modes are aggregated to the TAZ level and proceed through the remaining steps in the MPO's four-step model. The walk trips are distributed to destinations using a choice modeling approach, thus identifying pedestrian trip origins and destinations. In this paper, a proof-of-concept application is included to demonstrate the framework in successful operation using data from the Portland, Oregon, region. Opportunities for future work include more research on the potential routes between origins and destinations for walk trips, application of the framework in another region, and developing ways the research could be implemented in activity-based modeling systems.     

Demand-responsive transit circulator service network design

Commuter rail systems are being introduced into many urban areas as an alternative mode to automobiles for commuting trips. It is anticipated that the shift from the auto mode to rail mode can greatly help alleviate traffic congestion in urban road networks. However, the right-of-way of many existing commuter rail systems is usually not ideally located. Since the locations of rail systems were typically chosen long ago to serve the needs of freight customers, the majority of current commuter rail passengers have to take a non-walkable connecting trip to reach their final destinations after departing the most conveniently located rail stations. To make rail a more viable commuting option and thus more competitive to the auto mode, a bus feeder or circulator system is proposed for transporting passengers from their departing rail stations to final work destinations in a seamless transfer manner. The key research question with operating such a bus circulator system is how to optimally determine a bus route and stopping sequence for each circulating tour by using the real-time demand information. In this paper, we name this joint routing and stopping optimization problem the circulator service network design problem, the objective of which is to minimize the total tour cost incurred to bus passengers and operators with respect to minimizing the walk time of each individual bus passenger. A bi-level nonlinear mixed integer programming model is constructed and a tabu search method with different local search strategies and neighborhood evaluation methods is then developed for tackling the circulator service network design problem.     

Airport security and screening satisfaction: A case study of U.S.

The study analyzes the perception of airport safety by travelers, and how it is related to satisfaction with passenger screening experiences and the perception of public transit safety. It uses the Omnibus Household Survey data collected by the U.S. Bureau of Transportation Statistics and estimates a structural equations model. It finds a positive relationship between Screening Satisfaction and Screening Safety and a positive relationship between the perception of Public Transit Safety and Screening Safety. A lack of experience with using public transit is also found to contribute to travelers perceiving lower levels of Screening Safety at airports, and females compared to males perceive a lower level of Screening Safety. Finally, the study finds causality from a traveler’s satisfaction with the screening process to safety perception.     

Do market-concentrated airports propagate more delays than less concentrated ones? A case study of selected U.S. airports

Airport congestion and widespread passenger discontent with airlines' poor on-time performance have recently led the Federal government to reduce peak-time operations at large airports such as Chicago O'Hare and New York John F. Kennedy. This paper proposes a methodology to compute delay propagation based on the discrete Fourier transform (DFT) at a sample of ten U.S. airports in summer 2000, 2007 and 2008. The sampled airports are different in terms of size, location and index of concentration.In this research, a flight is considered to be late if it arrives more than fifteen minutes past its schedule. Delay propagation is defined as the hourly ratio of two amplitudes: the one of late arrivals at a sampled airport to that of late arrivals at the final destinations served from that same sampled airport. The purpose of this study is to determine whether delay propagation differs at market-concentrated airports from less concentrated ones. Based on nonparametric tests and proximity analysis, there is no clear evidence that market-concentrated airports are different from less concentrated ones in terms of propagated delays.     

Regional cooperation and the regionalization of air travel in Central New England

The regionalization of air traffic in Central New England since 1995, shifting traffic from Boston to regional airports, has come about as a response to factors unique to that region within the US. However, the results of regional cooperation between airport operators and the concomitant regionalization of air traffic are applicable to any region that is trying to increase metropolitan airport capacity by making greater use of smaller, regional airports. These results include benefits for travelers, “spreading the burden” of airport neighbors, and replicating the costs and benefits of air travel over a greater area.     

Investigating travelers’ multi-impulse buying behavior in airport duty-free shopping for Chinese traveler: Intrinsic and extrinsic motivations

Airport duty-free shopping is becoming the most important source of revenue and profit. As airports provide a unique retailing environment that differs from the day-to-day distribution channels, observation of travelers' shopping behavior in airports shows that it is different from that in traditional retail store environments. Duty-free retailers at airports must recognize this specific shopping behavior to maximize their sales performance. We examine the relationship between two different types of impulse buying behaviors: cognitive and affective. We also study travelers' satisfaction/loyalty in the context of airport duty-free shopping using two moderators of this relationship: intrinsic and extrinsic motivations. Data were collected from outbound Chinese travelers, who represent the largest proportion of travelers worldwide, to identify implications for airport duty-free retailers. This study found a positive relationship between affective impulse buying behavior and travelers' satisfaction, an aspect that also generates loyalty in the context of airport duty-free shopping. Furthermore, travelers' extrinsic motivations moderate the negative relationship between affective impulse buying behavior and travelers' satisfaction. This study provides insights that airport duty-free retailers can utilize to motivate travelers’ consumption and enhance their satisfaction in duty-free shopping, thereby increasing consumer loyalty.     

Estimating the sensitivity of small airport catchments to competition from larger airports: A case study in Indiana

An accurate estimation of airport catchment area enables airlines and airport operators to make informed decisions and to target potential markets precisely. This study uses the state of Indiana as a case study to estimate traffic leakage from the local airport, Indianapolis International Airport (IND), to two large hub airports in Illinois, the neighboring state of Indiana, namely Chicago O'Hare International Airport (ORD) and Chicago Midway International Airport (MDW). By using a decision making model that considers flying cost and access cost, this study simulates from local passengers' perspective which origin airport delivers the most cost effective flight itinerary. Using the top 20 routes of IND in 2018 as model inputs, the catchment area of two Chicago based airports in Indiana with variable coverage is plotted for different traveling scenarios. The analysis shows that an airport catchment area is sensitive to location, service level and traffic volume of competing airports nearby, as well as purpose of travel (business or leisure), number of travelers in a group (single, couple, family or multiple), length of trip, destination (domestic or international), preference of airlines (network carrier or budget carrier), and frequent flyer program status (premier member or general member). These findings could be valuable to all three aforementioned airports as well as airlines serving these airports when allocating operational and marketing resources. More importantly, this study creates a generic model that could be used by virtually any airport to estimate scenario-based catchment area using readily available itinerary and spatial data without resorting to expensive passenger surveys.     

From hub to tourist destination – An explorative study of Singapore and Dubai's aviation-based transformation

The growth of air transport networks and deregulation have allowed small, low-populated places like Singapore and Dubai to become major international tourism destinations. Both have used tightly combined airline, airport and tourism strategies to help achieve this. Here we analyse developments in Singapore and Dubai by examining interactions between their airlines, airports, governments and tourism authorities, and how integrated management strategies leveraged their aviation traffic hubs to develop tourism destinations.     

Nested logit model formation to analyze airport parking behavior based on stated preference survey studies

The rapid growth of private car ownership and utilization has resulted in significant parking-related congestion problems at large-scale international airports. Parking facilities located in the peripheral areas of airports could be more efficiently used to mitigate congestion and reduce delays due to dramatically increasing traffic demands and inferiorly designed parking lot configurations. In order to analyze the travelers' parking choice preferences for the off-site airport parking activities, a stated preference survey study was conducted around Terminal 3 at Beijing Capital International Airport. Two nested logit models were formulated to analyze the correlation between travelers' parking behavior and their travel characteristics. The research results indicate that travelers prefer to choose off-site parking facilities for long-term parking. A free and fast operation of connections should be provided in consideration of the long-distance layouts of parking facilities. A classification analysis of travelers with different preferences was conducted and the potential changes in travelers' parking choices to off-site parking lots were quantified. The research findings are helpful for traffic management agencies to develop practical guidelines for the establishment of new parking facilities with multiple access points at airports.     

Low-cost carrier entry at small European airports: Low-cost carrier effects on network connectivity and self-transfer potential

Airport connectivity can improve the competitiveness of regions by attracting tourism and inward investment. Regions traditionally accessed international destinations via connecting flights to national gateway airports usually operated by full service network carriers (FSNC). However, the entry of low-cost carriers (LCC) in these markets has led to changes in incumbent FSNC service provision. We analyse how intra-European connectivity has changed at small airports between 2002 and 2012 and how LCC entry has affected the quality of day-return schedules in these markets. Results show that offline LCC connectivity is greater than that scheduled by FSNCs. Furthermore, LCC entry had a negative effect on the quality of the connectivity offered by FSNCs. Interestingly, we also found that day-return itineraries become more difficult for passengers in markets where the LCC is the sole operator. Regional policy-makers may need to more carefully consider the connectivity implications in the design of LCC start-up incentive schemes.     

Mode choice behavior modeling of ground access to airports: A case study in Istanbul,Turkey

The increase in air transportation mode share, thereby the passenger traffic at airports has made the ground access to the airports more important in recent years. The aim of this study is to analyze the ground access mode choice to airports by using Multinomial Logit (MNL). In particular, our focus is on how transit areas of influence affect the mode choice for travelling to airports. Atatürk International Airport (IST) in Istanbul, Turkey was selected for the analyses and the investigated modes to access IST were automobile, drop-off, public transit, and taxi. The results showed that significant factors and variables included the trip distance to access IST, type of destination, trip cost to IST, automobile ownership status, employment status, travelling group size, location of the trip origin with respect to public transit influence, and time difference between the flight time and departure time to IST. It is also concluded that if the trip origin to IST was inside the influence areas of public transit, then public transit would be more likely to be chosen over other modes for accessing IST.     

Spatio-temporal fluctuations in the global airport hierarchies

The global air transportation network is responsible for moving millions of domestic and international passengers each year. Not surprisingly, relationships between airports vary widely, due to a myriad of geographic, economic, political and historical determinants. Further, given the dynamic nature of the many influences acting on the air transportation system, inter-airport relationships and the structure of the global air network as a whole are also constantly changing. The purpose of this paper is to explore such spatio-temporal variations in the structure of the global airport hierarchies. Here, we show how the concept of nodal regions can be applied to measure the extent of these variations. To facilitate this analysis, a database of nearly 900 airline carrier schedules and 4650 worldwide origins and destinations, representing a nearly complete record of commercial air travel over a six-year period, is examined. Given this dataset, nodal regions are derived for all airports represented. In general, results suggest that regions associated with individual airports are often relatively dynamic at the yearly as well as quarterly level. Los Angeles International Airport (LAX) is utilized as a local case-study to provide a detailed examination of these dynamics.     

An empirical examination of U.S. travelers’ intentions to use biometric e-gates in airports

The current air travel security challenges call for innovative solutions. Among those solutions, biometric e-gates allow security agencies to allocate their resources efficiently while making travel more fluid in sensitive areas of airports. Using data from a nationwide sample of U.S. air travelers, this study constructed and validated empirically a conceptual model explaining travelers’ intentions to use biometric e-gates in airports. It was found that performance and effort expectancy had the highest impacts, while privacy concerns had low impacts on intentions. Several implications for theory and practice are discussed.     

A border effect in airport choice: Evidence from Western Europe

Some commentators suggest that air travelers are reluctant to use a foreign airport as a point of departure for their journey. Such reluctance has implications for marketing and policy measures, especially in border regions and in smaller countries, such as the Netherlands and Belgium. In this study, we tested this supposed barrier effect of national borders with empirical data.Our research is based on a subsample (n = 4083) of a large-scale survey among German, Dutch and Belgian adults. Participants were asked about their most recent flight, preferences regarding long-distance travel, and general travel behavior. The survey information about the most recent trip was linked to the Official Airline Guide with data from 18 airports in the Western European region. On average, however, only 10 airports offered a direct connection to the destination of the respondents’ most recent flight. A conditional logit model with varying choice sets allowed us to model only the relevant airports per respondent, while accounting for other known determinants in airport choice, such as travel time, airline competition, and number of available flights.The model results confirmed our expectations: people strongly prefer a departure airport situated in their own country. The model predictions suggest that without the border effect the share of people in our sample departing abroad would rise from 7.7% to 18.7%. Experience (with multiple airports as a point of departure) mitigates the barrier effect of the border. The performance of our model is good: the median probabilitie for the chosen alternative is 68%. Our research stresses the importance of the barrier effect of borders in airport choice: even when traveling across borders in the European sky, national borders remain important.     

Segmentation of passenger preferences for using digital technologies at airports in Norway

Airports are increasingly focused on implementing digital technologies at key stages of the airport journey to enhance the passenger experience. However, passengers have different preferences. TwoStep Cluster Analysis is used to reveal the presence of distinct segments according to their preferences. The findings are based on a survey of 6082 passengers at airports in Norway. Three distinct segments are identified: those that prefer traditional manual processes, those that prefer automated technology-based processes, and those that prefer more personalised technology-based processes. Significant differences are revealed for each segment according to passenger and trip characteristics and opinions regarding how the use of digital technologies at airports impact on personal privacy and human dignity. The findings contribute to knowledge on passenger preferences at airports and can help to inform airport decision making.     

Airline frequent flyer programs: equity and attractiveness

The scheme of a frequent flyer program describes how travelers accumulate and redeem their frequent flyer miles in the program, and determines the amount of benefits travelers can receive from the program (e.g., number of free trips). In the US, there are three basic types of frequent flyer program schemes (standard, discount, and non-mileage schemes). This paper investigates, by type of traveler, which scheme is most (or least) attractive to customers, so that each airline can select the most appropriate (or attractive) scheme for its target audience. The study results imply that the “non-mileage” scheme may be most attractive to travelers with low average trip miles (flown miles per trip), while the “standard” scheme may be most attractive to travelers with high average trip miles.     

Network-based spatial interpolation of commuting trajectories: application of a university commuting management project in Kyoto,Japan

This study presents an application of network-based spatial interpolation of student commuting trajectories from a series of origin–destination trip datasets. In particular, we incorporated multimodal public transportation networks, including bus networks, to estimate the student commuting routes. The student samples for this study were collected from an online travel diary survey conducted by Ritsumeikan University in Kyoto, Japan. The ArcGIS Network Analyst was used to construct spatial network datasets and reconstruct trajectories from the origin–destination trip dataset. In addition, line densities of estimated trajectories were calculated and displayed on maps for geovisualization. These maps helped us understand the precise locations of congestion and spatial patterns of student commuting, unlike linear representations of people’s movements that connect origins and destinations. Our study also showed that estimated trajectories can simulate quantitative impacts on travel time by promoting walking or the use of public transportation.     

Conceptualizing and operationalizing nodal tourism functions

This paper reviews conceptualizations of nodal functions and presents a methodology for identifying and measuring the tourism functions of specific places with reference to place competitiveness. The methodology, which combines measures of length of stay and purpose of visit, is illustrated by a survey-based comparative analysis of ferry passengers traveling between two tourist nodes in New Zealand: Wellington and Picton. The results show distinctive differences between the two places in terms of their multiple functions expressed as origins, gateways, stopovers and destinations. Opportunities for modifying functions appear to be greatest amongst international travelers.