The choice of airport, airline, and departure date and time: Estimating the demand for flights

Authors

Diego Escobari, The University of Texas Rio Grande ValleyFollow
Cristhian Mellado

Document Type

Book

Publication Date

2014

Abstract

This chapter estimates the demand for flights in an international air travel market using a unique dataset with detailed information not only on flight choices but also on contemporaneous prices and characteristics of all the alternative non-booked flights. The estimation strategy employs a simple discrete choice random utility model that we use to analyze how choices and its response to prices depend on the departing airport, the identity of the carrier, and the departure date and time. The results show that a 10% increase in prices in a 100-seat aircraft throughout a 100-period selling season decreases quantity demanded by 7.7 seats. We also find that the quantity demanded is more responsive to prices for Delta and American, during morning and evening flights and that the response to prices changes significantly over different departure dates.

Comments

Original published version available at https://doi.org/10.1108/S2212-160920140000004006

Recommended Citation

Escobari, D. and Mellado, C. (2014), "The Choice of Airport, Airline, and Departure Date and Time: Estimating the Demand for Flights", The Economics of International Airline Transport (Advances in Airline Economics, Vol. 4), Emerald Group Publishing Limited, Bingley, pp. 177-198. https://doi.org/10.1108/S2212-160920140000004006

Publication Title

he Economics of International Airline Transport (Advances in Airline Economics, Vol. 4)

DOI

10.1108/S2212-160920140000004006