Origin Airport Choice in a Multi-Airport Region
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See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/249313065 ORIGIN AIRPORT CHOICE IN A MULTI-AIRPORT REGION Article · January 2007 CITATIONS READS 2 128 2 authors: Edoardo Marcucci Valerio Gatta Università Degli Studi Roma Tre Università Degli Studi Roma Tre 81 PUBLICATIONS 1,041 CITATIONS 55 PUBLICATIONS 1,043 CITATIONS SEE PROFILE SEE PROFILE Some of the authors of this publication are also working on these related projects: CALL FOR PAPERS for the SPECIAL ISSUE "Modal Shift, Emission Reductions and Behavioral Change: Transport Policies and Innovations to Tackle Climate Change" hosted by RETREC. View project CITYLAB City Logistics in Living Laboratories View project All content following this page was uploaded by Edoardo Marcucci on 04 June 2014. The user has requested enhancement of the downloaded file. XXVIII CONFERENZA ITALIANA DI SCIENZE REGIONALI ORIGIN AIRPORT CHOICE IN A MULTI-AIRPORT REGION Edoardo MARCUCCI 1 e Valerio GATTA 2 1 Università Roma Tre, Via G. Chiabrera 199 - 00145 Roma 2 Università di Roma, “La Sapienza”, P.le Aldo Moro 5 - 00185 Roma SUMMARY Airports are the nodes on which air transport networks are based. Airport choice decisions are particularly relevant with an increasing air travel demand world-wide. The analysis of origin airport in multi-airport regions has a well established tradition in transportation and regional economics. The main goals of the paper pertain to the estimation of the relevance of the different attributes in determining origin airport choice including the specific role of attribute cut-offs; the estimation of statistically significant alternative specific variables to be used for policy simulations; the inference of significant socioeconomic segmentations to provide valuable suggestions for demand segmentation purposes. We used stated choice experiments to elicit agents’ preferences, and employed multinomial logit models for estimation. The study concentrates on a multi-airport region in central Italy (Marche and Emilia Romagna) where 4 competing airports are located. The models estimated on the 165 available interviews provided relevant information for all the research goals. 1 1. INTRODUCTION Airports are the fundamental building blocks of air transport networks and, as such, of the entire aviation sector. In the last fifty years air traffic world-wide, has increased tremendously at a much greater rate than any other mode of transport. In the 1975-2002 period (Doganis, 2002) air transport demand has shown growth rates, on average, twice as great as world economic growth. Even if air transport demand is strongly influenced by highly unpredictable variables (terrorist attacks, wars, atmospheric fluctuations, economic recessions) nevertheless its growth is commonly forecasted as high by the major institutions in this sector (IATA, 2006; Boeing, 2006; Airbus, 2006). One possible way to accommodate extant demand increases is by raising available seat- kilometers even if, after a while, this necessarily conflicts with the limited runaway and terminal capacity available. Expansion is on the agenda of many busy airports throughout the world (UK Department for transport, 2003; Regional Airport Planning Committee, 2000). The issue of capacity expansion is complex in general and especially so when considering airports serving multi-airport regions. Bearing in mind morphology and population dispersion in Italy this issue becomes particularly relevant. The analysis of airport choice mechanisms adopted by air travellers is a crucial element both for long term planning strategies, for metropolitan areas served by more than one airport, as well as for airport managers confronting themselves with competing airports when formulating marketing strategies. Airport choice in a multi-airport region can be influenced by the following elements: capacity expansion, parking policies, ground transportation improvements, faster and less expensive ground services, higher connectivity, etc. Airport structure and development is influenced both by market and regulatory forces especially in a multi-airport region where each airport actively compete for origin passengers. No wonder air travel choice analysis has become increasingly popular world-wide over the last years even if in Italy there has been no such a specific attention paid to this issue with few but remarkable exceptions (Lupi, 2006; Postorino, 2001). Early studies adopted basic models dealing with simple choice of departure airport (Skinner, 1976). Subsequently more realistic choice situations have been modeled, including airport, airline (Pels et al., 2001) and, more recently, ground transportation mode choice (Hess and Polak, 2006). More sophisticated models estimated (Hess and Polak, 2005a, b, c) have also shown that passenger behavior varies deterministically for homogeneous though diversified groups (business/leisure) but also stochastically within specific groups. The results obtained for a behavioral model estimation depend not only on the methodology used but also on the aggregation and quality of the data employed. This statement is particularly true for airport choice studies and this is testified by the consistent number of works dealing with the San 2 Francisco Bay Area given the availability of detailed and good quality data from the 1995 Airline Passenger Survey conducted by the Metropolitan Transport Commission (MTC, 1995). The most important aim of this work consists in creating an extensive and high quality original database for Italy with specific relation to a well determined multi-airport region in the centre of Italy (Marche and Emilia Romagna). It is important to diversify and validate results in various institutional and regulatory contexts as well as in diverse geographical areas characterised by differentiated demand peculiarities. The present study makes use of stated preference (SP) data, implements a classical segmentation approach and introduces the concept of cut-offs recently suggested by Swait (2001) to take in due consideration the distinction between compensatory and non-compensatory decisions. The results obtained suggest that cut-offs issues are relevant in this research field as, for other aspects, also suggested by Ba şar and Bhat (2004) when proposing a probabilistic choice set multinomial logit (PCMNL) to analyze the choice (consideration) set formation of travellers. Similarly to other studies we concentrate on departing passengers given that data concerning arriving passengers are not available and connecting passengers issues are not relevant to the context studied. The paper is organized as follows. Section 2 provides a synthetic literature review illustrating where the research frontier lies and explaining how and where the present work innovates. The third section briefly describes the methodology used. Dataset illustration and econometric results are presented in section 4. Policy simulations are treated in section 5 and 6 describes future research plans. Section 7 concludes. 2. LITERATURE REVIEW This section provides a short review of the extant research on air travel choice modeling. Among the first studies on airport choice one should recall the work of Skinner (1976) studying via a multinomial logit (MNL) model the Baltimore-Washington DC area airport choice and providing statistically relevant evidence of the role played by flight frequency and ground accessibility. Other studies inquiring airport choice mechanisms in multi-airport systems serving metropolitan areas include also Kanafani and Yuan (1977), Augustinus and Demakopolous (1978), Harvey (1987) who used both access time and frequency in a non- linear fashion in order to capture the diminishing marginal utility (disutility) of frequency (access time); Ashford and Bencheman (1987) instead used travel time to the airport, fare and frequency of service as explanatory variables; Ndoh et al. (1990) showed that a nested multinomial logit is statistically preferred to a MNL; Thompson and Caves (1993) found that for leisure travelers, access time to the airport, airfare and maximum number of seats available were statistically significant in explaining airport choice; Windle and Dresner (1995) used various ground access modes and parking as explanatory variables to explain 3 airport selection; Monteiro and Hansen (1996), Bondzio (1996), Pels et al. (2000) adopt a nested logit (NL) demand function to develop a competition model with airlines using both fares and frequencies as competitive instruments and airports using just airport taxes. Pels et al. (2001), Pels et al. (2003), Ba şar and Bhat (2004), Hess and Polak (2006, 2005a, c) concentrate the analysis of passenger airport choice departing from a multi-airport region using all the data collected for the San Francisco Bay Area implementing mixed logit (ML), NL, PCMNL, generally accounting for the additional choices along either the airline or the access-mode dimension. Hess and Polak (2005b) instead study the combined choice of airport, airline and access mode for the Greater London area adopting a Cross-Nested Logit (CNL) model. Recent and comprehensive reviews focusing on airport and airline choice dimensions can be found in Ba şar and Bhat (2004) and in Hess and Polak (2006). The present work innovates with reference to the following aspects: 1) it creates a new and detailed database concerning airport choice in a multi-airport region in Italy that for institutional, regulatory and market characteristics proves quite different