Expanding airport capacity of cities under uncertainty: Strategies to mitigate congestion

Airport capacity constraints are increasingly challenging the growth of air traffic. At the same time, decision-making about airport capacity investments is extremely complex, involving trade-offs. This paper’s objective is to optimise a privately owned airport system’s capacity investment decision in a city under demand uncertainty. Next to the investment size, our real options model incorporates the timing of the investment, as well as the cost of congestion. The results reveal that the larger a city’s initial airport capacity, the smaller its investment will relatively be and the lower the occupancy rate threshold at which investment will take place. We also show that, in case of a higher demand growth combined with more demand uncertainty, the city will benefit from a significantly larger investment, but made later at a higher occupancy rate. In this case, cities with a small initial capacity will sometimes even more than double current capacity. Higher airport charges and an increase in non-aeronautical revenues both lead to a later investment in more capacity, due to the increased project attractiveness. An increase in congestion costs results in a larger investment made earlier, in order to eliminate delays. Airport operational cost and capacity holding cost increases both lead to smaller investments.     

An analysis for the competitive strength of Asian major airports

This paper presents an analysis of the competitive status of major airports in the East Asia region. The analysis assesses these airports based on five factors: service, demand, managerial, facility, and spatial qualities. In order to analyze the competitive status of the selected airports, this study has applied a multi-decision criteria approach and is based on a comparison of qualitative data. The competitive status of each airport can be categorized as one of the following levels: most, more, less, or least competitive.     

The role of London airports in providing connectivity for the UK: regional dependence on foreign hubs

In a context of ongoing debate about the future UK aviation policy and its implications for regional economic development, this paper discusses the role of London Heathrow and the South East airports in providing connectivity for the UK, with particular focus on the international markets that originate from regional UK airports. Using an MIDT dataset of worldwide passenger itineraries served by the European airport network during May 2013, we first establish whether London Heathrow can currently be considered the most important hub for the UK, in terms of traffic generation, connectivity, and centrality, while also measuring the dependence of UK regions on foreign airports and airlines to remain connected with the rest of the world. Results show that, despite the competition, London Heathrow benefits from its massive traffic generation to remain the most central gateway for overall UK air transport markets. However, when only regional markets are considered, significant dependence on foreign hubs appears in many destinations, particularly to Asia–Pacific or the BRIC countries where above 80% of passengers use transfer flights. These results fit nicely with the observed trends of seat de-concentration and hub-bypassing in the airline industry. While dependence on foreign hubs can be interpreted as a sign of vulnerability, there is also the argument that bypassing Heathrow allows regional airports to develop new markets and reduce the level of congestion in the London airport system.     

Improving schedule reliability based on copulas: An application to five of the most congested US airports

This study, based Newark Liberty International, New York John F. Kennedy, New York LaGuardia, Chicago O’Hare International and San Francisco International in the US, provides a perspective on the predictability of on-time performance evaluation by applying an actuarial and financial method called copula. It is common for the percentage of on-time gate arrivals to be portrayed in daily news as an indicator of schedule reliability. However, the degree of interdependency between gate arrival delays and block delays may provide some indication of schedule reliability.     

Measuring the impact of traffic flow management on interarrival duration: An application of autoregressive conditional duration

The Federal Aviation Administration has several tools in its arsenal to manage traffic flows. However, it is very difficult to assess with certainty the impact of traffic flow management procedures such as Time-Based Flow Management (TBFM) or Traffic Management Initiatives (TMI) on airport performance because operational data are not readily available to analysts. This study uses the case of Fort Lauderdale–Hollywood International Airport (FLL) where traffic flow management procedures have been implemented to manage a reduction of airport capacity due to runway constructions. Based on an Autoregressive Conditional Duration (ACD) model, the analysis shows that the use of traffic flow management procedures contributed to reducing the volatility of interarrival duration whether separation relies on time-metering (TBFM) or distance between aircraft (TMI). The lessons learned from this case study may have important implications for airports whose available capacity is severely constrained.     

An analysis of the determinants of cruise traffic: An empirical application to the Spanish port system

We study the determinants that affect the capacity of ports to attract cruise ships in Spain. The conclusion is that the likelihood of having cruise traffic is linked to ports located in populous areas and close to large airports, ports not specialized in container traffic but sharing facilities with ferries traffic and ports having a minimum depth of water. The amount of cruise traffic that a port can generate is also related to the population and the air connections, along with the tourist appeal and the facilities shared with other types of port traffic, namely roll-on roll-off and ferries.     

An emerging Korean youth culture,Rail-ro: the application of cultural consensus analysis to domestic rail travel experiences

This study deals with an emerging domestic rail travel phenomenon among Korean youth, known as Rail-ro (Railo), which has influenced aspects of youth culture and domestic tourism in Korea since 2007. The purpose of this study is to determine whether Railo experiences exist as a coherent culture among Railers based on cultural consensus analysis. The result indicates Railers’ strong agreement about Railo experiences, which reinforces the view that a particular rail pass could be instrumental in forming a distinct youth travel subculture. This study demonstrates how travel culture driven by the seasonal rail pass supports domestic tourism and inbound tourism.     

An optimal approach for a set covering version of the refueling-station location problem and its application to a diffusion model

This article deals with the refueling-station location problem for alternative fuel vehicles in a traffic network. Alternative fuel vehicles can be characterized by the vehicle range that limits the travelable distance with fuel at full capacity. I propose an efficient formulation of the refueling-station location problem using an optimal property and prove that the problem is NP(Non-deterministic Polynomial)-complete in the strong sense. I consider a special case of the refueling-station location problem in which the construction costs are equal for all nodes. In this case, the problem is to determine refueling station locations to minimize the total number of stations, while making the possible multiple predetermined origin–destination round-trips. I propose an optimal algorithm applicable when no refueling stations currently exist in a traffic network and a dynamic programming based algorithm applicable when a set of refueling stations already exists. I apply the algorithms to a traffic network to study the diffusion of refueling stations and predict the speed and range of station establishment. The computational experiments show that the speed of diffusion depends on the vehicle range and the sequence of the origin–destination demands considered in the diffusion process.     

My bad for wanting to try something unique: sources of value co-destruction in the Airbnb context

ABSTRACT

The present study explores the antecedents of value co-destruction – in the sharing economy context, specifically with respect to Airbnb. The study focuses on negative reviews from Airbnb customers, which were typed in English and posted online. The research employed five keywords, ‘bad’, ‘awful’, ‘poor’, ‘terrible’, and ‘horrible’, to capture the online narratives linked to customers’ negative experiences with Airbnb. Out of the 2,733 online reviews screened, the study focused on 694 negative reviews. The data analysis followed the grounded theory approach, resulting in two distinct themes reflecting the antecedents of value co-destruction: the bad behaviour of Airbnb hosts and the company's poor customer service. These findings contrast with previously studies, which have indicated Airbnb's remarkable customer satisfaction levels as evidenced by positive user reviews. The managerial implications of the present study's results indicate that Airbnb should clearly invest additional resources to minimize the negative experiences of its customers; by clearly defining the hosts’ tasks and responsibilities. In addition, when customers report their dissatisfaction, their concerns should be addressed promptly and effectively through good customer service.     

An Exploratory Study of the Propensity for South Koreans to take Cruises: Investigating Koreans' Perceptions of Cruise Ship Travel

The purpose of the present study was to examine Koreans' perceptions of cruise ship travel to ascertain the potential for future development of that tourism segment. An understanding of Koreans' perceptions is essential for determining the potential of the Korean cruise market. Using survey data, the study investigated Koreans' knowledge level, willingness and desired travel patterns regarding cruise ship travel. Findings from the study can assist practitioners to enhance their comprehension of Koreans' perceptions and behaviors concerning cruise ship travel. Copyright © 2011 John Wiley & Sons, Ltd.