World Academy of Science, Engineering and Technology International Journal of Business and Economics Engineering Vol:11, No:11, 2017
Competitor Analysis to Quantify the Benefits and for Different Use of Transport Infrastructure Dimitrios J. Dimitriou, Maria F. Sartzetaki
II. BACKGROUND OF TRANSPORT MODES COMPETITION Abstract—Different transportation modes have key operational Transport and mobility have been at the top of the agenda advantages and disadvantages, providing a variety of different of the European Commission in order to foster competition transport options to users and passengers. This paper reviews key variables for the competition between air transport and other and to improve public transport through a regulatory transport modes. The aim of this paper is to review the competition framework [1]. There are many important factors that between air transport and other transport modes, providing results in influence transport mode choice, such as cost, environment, terms of perceived cost for the users, for destinations high and frequency [2]. According to an extended literature review competitiveness for all transport modes. The competitor analysis on empirical case studies, [2] highlights that price is the most variables include the cost and time outputs for each transport option, important factor when choosing transport services, the quality highlighting the level of competitiveness on high demanded Origin- Destination corridors. The case study presents the output of a such is a factor of high importance, and environmental impact is a analysis for the OD corridor in Greece that connects the Capital city factor with very low importance. (Athens) with the second largest city (Thessaloniki) and the different As analyzed in [3], examining the competition between air transport modes have been considered (air, train, road). Conventional and high speed rail for a given city-pair, the reduction in the wisdom is to present an easy to handle tool for planners, managers number of flights is based on many conditions, including and decision makers towards pricing policy effectiveness and demand length of the high speed train journey and the strategic attractiveness, appropriate to use for other similar cases. planning and regulatory framework provided by the airlines Keywords—Competitor analysis, generalized cost, transport [3]. economics, quantitative modelling. By analyzing the competition of transport modes in a very large intra-European connection, Rome-Milan [4] found a low I. INTRODUCTION degree of competition in rail and air transport services and ONTEMPORARY demand is influenced by integrated highlighted that a reduction in the difference between airline C transportation systems that require maximum flexibility and rail operators in terms of costs of accessibility could lead in the use of each transport mode. As a result, modal to a higher degree of competition between these operators [4]. competition exists at various levels and takes different dimensions. Modes can compete with one another in terms of III. METHODOLOGY FRAMEWORK cost, speed, accessibility, frequency, safety, comfort, etc. The In order to face the competitive environment, intermodal most prevailing competition concerns costs versus time and transport operators have increasingly adopted business level of service. Cost is one of the most important practices which focus on reducing the operational costs, considerations in modal choice. Because each mode has its increase the profit margins, and improve their competitive own price/performance profile, the actual competition between situation in the market industry [5]. the modes depends primarily upon the distance travelled, and The methodology framework is based on competitor thus, that is why air transport is the most competitive mode in analysis. The concept is based on the development of KPIs long distances. that will provide results on performance and efficiency and the The objective of this research is to review the competition main pillars of the competitor analysis framework are: between air transport and other transport modes, in terms of Develop KPIs to provide results on infrastructure cost, price policy and regulation. This analysis performance/efficiency, framework presents the key components that affect transport Sensitivity analysis to estimate demand attractiveness, mode competitiveness for domestic high demanded OD pair. Background for elasticity oriented evaluation; International Science Index, Business and Economics Engineering Vol:11, No:11, 2017 waset.org/Publication/10008246 The case study analysed is an OD corridor in Greece that o Fare/price elasticity, connects the Capital city (Athens) with the second largest city o Gross elasticity between different transport options. (Thessaloniki) and the different transport modes have been In this content, the assessment framework deals with the considered (air, train, road). review of the key decision parameters which are: (a) to compare the most suitable transport options; and (b) to compare this performance between transport infrastructures [6]. D. J. Dimitriou is Assistant Professor and Maria F. Sartzetaki is PhD This functionality provides a quite flexible measure to candidate in Department of Economics, Democritus University of Thrace, review operational performance for the alternative transport Greece, Panepistimioupoli, 69100 Komotini, (phone: +30 25310 39507, fax: +30 25310 39830, e-mail: [email protected], [email protected]). options in a city pair. Taking into account most of the
International Scholarly and Scientific Research & Innovation 11(11) 2017 2566 scholar.waset.org/1307-6892/10008246 World Academy of Science, Engineering and Technology International Journal of Business and Economics Engineering Vol:11, No:11, 2017
perceived mode choice variables, the selected variables are: Dwell/ewaiting time (Terminal DTa;DTb o Fare variables handling,check‐in,etc) Airport Dwell Time for Ground Transport o Time variables GTa;GTb On the other hand, taking into account all the transport A to B to/from Terminal system operation characteristics, the other variables that affect Flight time from A to B FTab the modeling framework are: Dwel;l/waiting time (Network TIme Location of transport node from the city centre GTDaa;GTDbb o Ground table,connections) o Speed/travel time [1]. transport pt journey time from City center to GTDca;GTDcb A/B A. Generalized Cost Method There are many factors that influence mode choice in Fig. 3 Variables for assessing accessibility to airports transport. Especially within an intermodal chain where the main distance is covered by air, rail or road the role of time is The equation that gives the total generalized cost for the air crucial [6]. transport mode is: The generalized cost method enables each individual agent to make a decision on what mode of transport it will take ∑ given a range of options from A to B. The monetary and non- (2) monetary aspects of the journey can be summated with C. Rail Transport different valuations of the non-monetary aspects dependent on The variables that are used in order to estimate the total the agent and the mode. The generalized cost function can be time and fare from Airport A to Airport B are: defined as:
Dwell/ewaiting time in train station DTa;DTb (1)
Train station Dwell Time for Transport to/from train GTa;GTb TRC refers to the monetary (out-of-pocket) costs of the A to B station journey. TC refers to the non-monetary (time) costs of an Travel Time from A to B TTab uncongested journey.
The perceived breakdown is based on the concept of Dwel;l/waiting time GTDaa;GTDbb generalized cost for the different means of transport that cover Accessibility to train station pt journey time from City center to one route from point A to point B. GTDca;GTDcb A/B
B. Air Transport Fig. 4 Variables for assessing accessibility to train station Especially for the air transport mode option, the total time and fare are estimated according to following equations. The equation that gives the total generalized cost for the rail transport mode is: