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Exploratory analysis of air travel demand stimulation in first-time served markets

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  • Abdelghany, Ahmed
  • Guzhva, Vitaly S.

Abstract

This paper presents an exploratory analysis of air travel demand stimulation by non-stop service in first-time served markets (FTMS). Using a data sample of 5,170 records representing service entries in global FTMS from September 2015 to August 2019, we examine demand response to the newly introduced non-stop service and the corresponding market characteristics. Four different variables are considered to represent air travel demand stimulation that can be adopted by practitioners. These variables include Stimulated Passengers, Stimulation Multiplication Factor, Stimulation Rate, and Passengers Stimulated per Non-stop Seat. We estimate a multiple regression model for each of these four dependent variables. The main goal is to understand how the different representations of demand stimulation relate to each other and how their corresponding models explain the different representations of demand stimulation. Results show that there are differences in how these four variables represent demand stimulation and the explanatory power of their corresponding models.

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  • Abdelghany, Ahmed & Guzhva, Vitaly S., 2022. "Exploratory analysis of air travel demand stimulation in first-time served markets," Journal of Air Transport Management, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:jaitra:v:98:y:2022:i:c:s0969699721001435
    DOI: 10.1016/j.jairtraman.2021.102162
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