Modeling International Flight and Airline Choices

• Main Authors: CHIA-JUNG HUANG, 黃家榮
• Other Authors: Chieh-Hua Wen
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/70101580332985491814

碩士 === 逢甲大學 === 運輸科技與管理學系 === 99 === The passenger volumes of cross-strait air travel have grown rapidly largely due to recent deregulations in the development of cross-strait direct flights. Thus the cross-strait flight market is increasing competitive. This research aims to apply the multinomial logit, nested logit, and mixed logit choice models to develop a flight and airline choice model for the cross-strait air travel market. A continuous trigonometric function is used to capture the passengers’ preference for flight schedule. In addition, the estimation results of various choice models are used to calculate willingness to pay (WTP) for service attributes. The empirical results show that the use of continuous trigonometric functions for flight choice can simplify utility specifications and improve the model fit. The nested logit model with alternatives nested by airlines outperforms the model nested by time period, indicating a high substitution among the alternatives in the common airline nest. The mixed logit results indicate that all the service attributes have the heterogeneity except for on-time performance. The WTP values for cabin service (very friendly and efficient), on-board food (two selections), and check-in service (very friendly and efficient) are relatively high, meaning passengers are willing to pay more for these service attributes. Air carriers can use these results to improve their own performance and build a differential edge in the market.