Differential Pricing Strategies for Airport Shuttles: A Study of Shanghai Based on Customized Bus Ticketing Data

Siyuan Yu, Chenlong Xu, Zhikang Zhai, Yuefeng Zheng and Yu Shen ()
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Siyuan Yu: Key Laboratory of Infrastructure Durability and Operation Safety in Airfield of CAAC, Tongji University, Shanghai 201804, China
Chenlong Xu: Key Laboratory of Infrastructure Durability and Operation Safety in Airfield of CAAC, Tongji University, Shanghai 201804, China
Zhikang Zhai: Key Laboratory of Infrastructure Durability and Operation Safety in Airfield of CAAC, Tongji University, Shanghai 201804, China
Yuefeng Zheng: Department of Science and Innovation Management, Shanghai Airport (Group) Co., Ltd., Shanghai 200335, China
Yu Shen: Key Laboratory of Infrastructure Durability and Operation Safety in Airfield of CAAC, Tongji University, Shanghai 201804, China

Sustainability, 2024, vol. 16, issue 16, 1-19

Abstract: Airport shuttle buses, as a specialized form of bus service, serve as an economical, efficient, and sustainable transportation option for air travelers. In contrast to conventional bus services, airport shuttle bus operations exhibit more pronounced market-oriented characteristics, striving to balance extensive public transport coverage with the optimization of corporate profitability. Although these services outperform regular bus transit in terms of efficiency, they incur higher operational costs. However, existing studies on enhancing profitability and optimizing resource allocation for airport shuttle buses are inadequate. This study proposes a differential pricing strategy based on historical ticketing data. Initially, we analyze the characteristics of orders, users, and reservations within the context of customized bus operations. Leveraging the differences among various groups, we employ clustering techniques to classify seat grades and segment users. Based on the clustering outcomes, we determine distinct price elasticity values for each segment. As the strategies are developed based on seat grades, booking time, and user travel patterns, the numerical experiments indicate that the proposed differentiated pricing strategy can increase the revenue of customized public transport services by at least 41%. This strategy not only enhances the efficiency of resource allocation and service accessibility but also makes the service more financially sustainable.

Keywords: public transportation; differentiated pricing; airport shuttle; data mining; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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