Analysing travel mode and airline choice using latent class modelling: A case study in Western Australia

Heng Zhou, Richard Norman, Xia, Jianhong(Cecilia), Brett Hughes, Keone Kelobonye, Gabi Nikolova and Torbjorn Falkmer

Transportation Research Part A: Policy and Practice, 2020, vol. 137, issue C, 187-205

Abstract: This paper investigates travel mode and airline choice using stated-preference data. Both air and non-air passengers’ data were collected in Western Australia, which allows easier generalisability of the findings to a wider population. A market segmentation approach, using latent class modelling, was applied to identify passenger segments. The results shown a significant difference between identified segments in terms of demographics, economics and trip characteristics. One segment, comprising travellers with higher income and more frequent business travellers, was sensitive to service-factors. The other, comprising personal travellers with lower incomes, placed higher sensitivity on price. The findings highlight the importance of understanding mode choice behaviour based on market segmentation and provides insights to policy-makers and airlines for developing more effective polices and strategies.

Keywords: Air and non-air passenger; Preference heterogeneity; Latent class model; Market segments; Travel mode choice; Willingness to pay (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (10)

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DOI: 10.1016/j.tra.2020.04.020

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