IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v82y2020ics0966692319308877.html
   My bibliography  Save this article

Estimating the sensitivity of small airport catchments to competition from larger airports: A case study in Indiana

Author

Listed:
  • Gao, Yi

Abstract

An accurate estimation of airport catchment area enables airlines and airport operators to make informed decisions and to target potential markets precisely. This study uses the state of Indiana as a case study to estimate traffic leakage from the local airport, Indianapolis International Airport (IND), to two large hub airports in Illinois, the neighboring state of Indiana, namely Chicago O'Hare International Airport (ORD) and Chicago Midway International Airport (MDW). By using a decision making model that considers flying cost and access cost, this study simulates from local passengers' perspective which origin airport delivers the most cost effective flight itinerary. Using the top 20 routes of IND in 2018 as model inputs, the catchment area of two Chicago based airports in Indiana with variable coverage is plotted for different traveling scenarios. The analysis shows that an airport catchment area is sensitive to location, service level and traffic volume of competing airports nearby, as well as purpose of travel (business or leisure), number of travelers in a group (single, couple, family or multiple), length of trip, destination (domestic or international), preference of airlines (network carrier or budget carrier), and frequent flyer program status (premier member or general member). These findings could be valuable to all three aforementioned airports as well as airlines serving these airports when allocating operational and marketing resources. More importantly, this study creates a generic model that could be used by virtually any airport to estimate scenario-based catchment area using readily available itinerary and spatial data without resorting to expensive passenger surveys.

Suggested Citation

  • Gao, Yi, 2020. "Estimating the sensitivity of small airport catchments to competition from larger airports: A case study in Indiana," Journal of Transport Geography, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jotrge:v:82:y:2020:i:c:s0966692319308877
    DOI: 10.1016/j.jtrangeo.2019.102628
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692319308877
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2019.102628?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yang, Zhongzhen & Yu, Shunan & Notteboom, Theo, 2016. "Airport location in multiple airport regions (MARs): The role of land and airside accessibility," Journal of Transport Geography, Elsevier, vol. 52(C), pages 98-110.
    2. Gillen, David & Hazledine, Tim, 2015. "The economics and geography of regional airline services in six countries," Journal of Transport Geography, Elsevier, vol. 46(C), pages 129-136.
    3. Elwakil, Omar Sherif & Windle, Robert J. & Dresner, Martin E., 2013. "Transborder demand leakage and the US–Canadian air passenger market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 45-57.
    4. Gudmundsson, Sveinn & Paleari, Stefano & Redondi, Renato, 2014. "Spillover effects of the development constraints in London Heathrow Airport," Journal of Transport Geography, Elsevier, vol. 35(C), pages 64-74.
    5. Gao, Yi & Koo, Tay T.R., 2014. "Flying Australia–Europe via China: A qualitative analysis of the factors affecting travelers' choice of Chinese carriers using online comments data," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 23-29.
    6. Hsiao, Chieh-Yu & Hansen, Mark, 2011. "A passenger demand model for air transportation in a hub-and-spoke network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1112-1125.
    7. Fu, Qian & Kim, Amy M., 2016. "Supply-and-demand models for exploring relationships between smaller airports and neighboring hub airports in the U.S," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 67-79.
    8. Grosche, Tobias & Rothlauf, Franz & Heinzl, Armin, 2007. "Gravity models for airline passenger volume estimation," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 175-183.
    9. Steven A. Morrison, 2001. "Actual, Adjacent, and Potential Competition Estimating the Full Effect of Southwest Airlines," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 239-256, May.
    10. Jung, Se-Yeon & Yoo, Kwang-Eui, 2016. "A study on passengers' airport choice behavior using hybrid choice model: A case study of Seoul metropolitan area, South Korea," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 70-79.
    11. Lee, Joon-Kyu & Yoo, Kwang-Eui & Song, Ki-Han, 2016. "A study on travelers' transport mode choice behavior using the mixed logit model: A case study of the Seoul-Jeju route," Journal of Air Transport Management, Elsevier, vol. 56(PB), pages 131-137.
    12. Loo, Becky P.Y., 2008. "Passengers’ airport choice within multi-airport regions (MARs): some insights from a stated preference survey at Hong Kong International Airport," Journal of Transport Geography, Elsevier, vol. 16(2), pages 117-125.
    13. Suzuki, Yoshinori & Crum, Michael R. & Audino, Michael J., 2004. "Airport leakage and airline pricing strategy in single-airport regions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(1), pages 19-37, January.
    14. de Luca, Stefano, 2012. "Modelling airport choice behaviour for direct flights, connecting flights and different travel plans," Journal of Transport Geography, Elsevier, vol. 22(C), pages 148-163.
    15. Stone, Matthew J., 2016. "Reliability as a factor in small community air passenger choice," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 161-164.
    16. Gallet, Craig A. & Doucouliagos, Hristos, 2014. "The income elasticity of air travel: A meta-analysis," Annals of Tourism Research, Elsevier, vol. 49(C), pages 141-155.
    17. Kim, Amy M. & Ryerson, Megan S., 2018. "A long drive: Interregional airport passenger “leakage” in the U.S," Tourism Management, Elsevier, vol. 65(C), pages 237-244.
    18. Mao, Liang & Wu, Xiao & Huang, Zhuojie & Tatem, Andrew J., 2015. "Modeling monthly flows of global air travel passengers: An open-access data resource," Journal of Transport Geography, Elsevier, vol. 48(C), pages 52-60.
    19. Paliska, Dejan & Drobne, Samo & Borruso, Giuseppe & Gardina, Massimo & Fabjan, Daša, 2016. "Passengers' airport choice and airports' catchment area analysis in cross-border Upper Adriatic multi-airport region," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 143-154.
    20. Marcucci, Edoardo & Gatta, Valerio, 2011. "Regional airport choice: Consumer behaviour and policy implications," Journal of Transport Geography, Elsevier, vol. 19(1), pages 70-84.
    21. Zhou, Heng & Xia, Jianhong (Cecilia) & Luo, Qingzhou & Nikolova, Gabi & Sun, Jie & Hughes, Brett & Kelobonye, Keone & Wang, Hui & Falkmer, Torbjorn, 2018. "Investigating the impact of catchment areas of airports on estimating air travel demand: A case study of regional Western Australia," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 91-103.
    22. Lieshout, Rogier, 2012. "Measuring the size of an airport’s catchment area," Journal of Transport Geography, Elsevier, vol. 25(C), pages 27-34.
    23. Ryerson, Megan S. & Kim, Amy M., 2018. "A drive for better air service: How air service imbalances across neighboring regions integrate air and highway demands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PA), pages 237-255.
    24. Zhang, Yunlong & Xie, Yuanchang, 2005. "Small community airport choice behavior analysis: A case study of GTR," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 442-447.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gao, Yi & Sobieralski, Joseph B., 2021. "Spatial and operational factors behind passenger yield of U.S. nonhub primary airports," Journal of Air Transport Management, Elsevier, vol. 90(C).
    2. Yao, Haifang & Huang, Yingying & Liu, Jinsong, 2023. "Study on travel behavior characteristics of air passengers in an airport hinterland," Journal of Air Transport Management, Elsevier, vol. 112(C).
    3. Wang, Sen & Kong, Ningning Nicole & Gao, Yi, 2024. "Use mobile location data to infer airport catchment areas and calibrate Huff gravity model in the New York metropolitan area," Journal of Transport Geography, Elsevier, vol. 114(C).
    4. Wong, Collin WH & Cheung, Tommy King Yin & Zhang, Anming, 2023. "A connectivity-based methodology for new air route identification," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    5. K. V. Samburov, 2022. "Railway Regionalization of Russia by Long-Distance Passenger Transport," Regional Research of Russia, Springer, vol. 12(2), pages 168-176, June.
    6. Gao, Yi, 2021. "What is the busiest time at an airport? Clustering U.S. hub airports based on passenger movements," Journal of Transport Geography, Elsevier, vol. 90(C).
    7. Yirgu, Kaleab Woldeyohannes & Kim, Amy M., 2024. "Airport choices and resulting catchments in the U.S. Midwest," Journal of Transport Geography, Elsevier, vol. 114(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Teixeira, Filipe Marques & Derudder, Ben, 2021. "Spatio-temporal dynamics in airport catchment areas: The case of the New York Multi Airport Region," Journal of Transport Geography, Elsevier, vol. 90(C).
    2. Yirgu, Kaleab Woldeyohannes & Kim, Amy M., 2024. "Airport choices and resulting catchments in the U.S. Midwest," Journal of Transport Geography, Elsevier, vol. 114(C).
    3. Kim, Amy M. & Ryerson, Megan S., 2018. "A long drive: Interregional airport passenger “leakage” in the U.S," Tourism Management, Elsevier, vol. 65(C), pages 237-244.
    4. Zijlstra, Toon, 2020. "A border effect in airport choice: Evidence from Western Europe," Journal of Air Transport Management, Elsevier, vol. 88(C).
    5. Xiaoqian Sun & Sebastian Wandelt & Mark Hansen, 2020. "Airport Road Access at Planet Scale using Population Grid and Openstreetmap," Networks and Spatial Economics, Springer, vol. 20(1), pages 273-299, March.
    6. Fu, Qian & Kim, Amy M., 2016. "Supply-and-demand models for exploring relationships between smaller airports and neighboring hub airports in the U.S," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 67-79.
    7. Ryerson, Megan S. & Kim, Amy M., 2018. "A drive for better air service: How air service imbalances across neighboring regions integrate air and highway demands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PA), pages 237-255.
    8. Wang, Sen & Gao, Yi, 2021. "A literature review and citation analyses of air travel demand studies published between 2010 and 2020," Journal of Air Transport Management, Elsevier, vol. 97(C).
    9. Cho, Woohyun & Windle, Robert J. & Dresner, Martin E., 2015. "The impact of low-cost carriers on airport choice in the US: A case study of the Washington–Baltimore region," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 141-157.
    10. Fuellhart, Kurt & O’Connor, Kevin & Woltemade, Christopher, 2013. "Route-level passenger variation within three multi-airport regions in the USA," Journal of Transport Geography, Elsevier, vol. 31(C), pages 171-180.
    11. Li, Tao & Wan, Yan, 2019. "Estimating the geographic distribution of originating air travel demand using a bi-level optimization model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 267-291.
    12. Escobari, Diego, 2017. "Airport, airline and departure time choice and substitution patterns: An empirical analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 198-210.
    13. Lin, Pei-Chun, 2023. "The propagation of European airports’ on-time performance and on-time flights via air connectivity prior to the Covid-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 109(C).
    14. Wang, Yu-Chen & Wong, Jinn-Tsai, 2019. "Exploring air network formation and development with a two-part model," Journal of Transport Geography, Elsevier, vol. 75(C), pages 122-131.
    15. Cheung, Tommy King-Yin & Wong, Wai-hung & Zhang, Anming & Wu, Yangming, 2020. "Spatial panel model for examining airport relationships within multi-airport regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 148-163.
    16. Li, Max Z. & Ryerson, Megan S., 2019. "Reviewing the DATAS of aviation research data: Diversity, availability, tractability, applicability, and sources," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 111-130.
    17. Lieshout, Rogier, 2012. "Measuring the size of an airport’s catchment area," Journal of Transport Geography, Elsevier, vol. 25(C), pages 27-34.
    18. de Luca, Stefano, 2012. "Modelling airport choice behaviour for direct flights, connecting flights and different travel plans," Journal of Transport Geography, Elsevier, vol. 22(C), pages 148-163.
    19. Kalakou, Sofia & Moura, Filipe, 2021. "Analyzing passenger behavior in airport terminals based on activity preferences," Journal of Air Transport Management, Elsevier, vol. 96(C).
    20. Evangelinos, Christos & Staub, Nelly & Marcucci, Edoardo & Gatta, Valerio, 2021. "The impact of airport parking fees on the tourist's airport/airline choice behavior," Journal of Air Transport Management, Elsevier, vol. 90(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:82:y:2020:i:c:s0966692319308877. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.