Modeling the competition among air-travel itinerary shares: GEV model development

Gregory M. Coldren and Frank S. Koppelman

Transportation Research Part A: Policy and Practice, 2005, vol. 39, issue 4, 345-365

Abstract: This study reports the results of aggregate air-travel itinerary share models estimated using data from all East West markets in the United States and Canada. These models predict airline ridership at the itinerary level and aid carriers in long and intermediate term decision-making. Official and comprehensive schedule and bookings data is used to estimate generalized extreme value models capturing the inter-itinerary competition dynamic along three dimensions: time of day, carrier and level-of-service (nonstop, direct, single-connect, double-connect). Models incorporate one, two or three of these dimensions simultaneously. Model structures considered include multinomial logit and variations of the nested logit model (two-level nested logit, two-level weighted nested logit, three-level nested logit, three-level weighted nested logit and nested weighted nested logit). Independent variables for the models measure various itinerary service characteristics such as level-of-service, connection quality, carrier attributes, aircraft type, and departure time. Additionally, the advanced models yield inverse logsum and/or weight parameter estimates capturing the underlying competitive dynamic among air-travel itineraries. The results are intuitive, and the advanced models outperform the more basic specifications with regard to statistical tests and behavioral interpretations, giving insight into the competitive dynamic of air-carrier itineraries.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0965-8564(04)00115-6
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:39:y:2005:i:4:p:345-365

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().