IDEAS home Printed from https://ideas.repec.org/a/eee/juecon/v71y2012i3p278-288.html
   My bibliography  Save this article

Intermodal competition in the London–Paris passenger market: High-Speed Rail and air transport

Author

Listed:
  • Behrens, Christiaan
  • Pels, Eric

Abstract

This paper studies inter- and intramodal competition in the London–Paris passenger market during the period 2003–2009. We identify the degree to and conditions under which High-Speed Rail is a viable substitute for airline travel. Using pooled cross-sectional data we estimate multinomial and mixed logit models to examine actual travel behaviour. Our model allows us to analyse the reaction of passenger behaviour on the withdrawal of aviation alternatives and the completion of the High-Speed Rail link between the two cities in November 2007. The results show that travel time and frequency are the main determinants of travel behaviour. The valuation of total travel times changes over the years following the opening of the High-Speed Rail link. Furthermore, we show that the direct elasticity of market share with respect to frequency for a number of aviation alternatives is above 1, indicating that these alternatives are not able to maximise profits. These alternatives subsequently left the market in our sample period. For the remaining aviation alternatives, except for easyJet, we find elasticities of market share with respect to frequency close to 1. Therefore, we conjecture that competition in this market will decline in the long run.

Suggested Citation

  • Behrens, Christiaan & Pels, Eric, 2012. "Intermodal competition in the London–Paris passenger market: High-Speed Rail and air transport," Journal of Urban Economics, Elsevier, vol. 71(3), pages 278-288.
    • Handle: RePEc:eee:juecon:v:71:y:2012:i:3:p:278-288
    DOI: 10.1016/j.jue.2011.12.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0094119011000921
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jue.2011.12.005?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Basar, Gözen & Bhat, Chandra, 2004. "A parameterized consideration set model for airport choice: an application to the San Francisco Bay Area," Transportation Research Part B: Methodological, Elsevier, vol. 38(10), pages 889-904, December.
    2. Ortúzar, Juan de Dios & Simonetti, Carolina, 2008. "Modelling the demand for medium distance air travel with the mixed data estimation method," Journal of Air Transport Management, Elsevier, vol. 14(6), pages 297-303.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    4. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Access to and competition between airports: a case study for the San Francisco Bay area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(1), pages 71-83, January.
    5. Mar González-Savignat, 2004. "Competition in Air Transport," Journal of Transport Economics and Policy, University of Bath, vol. 38(1), pages 77-107, January.
    6. Koppelman, Frank S. & Wen, Chieh-Hua, 2000. "The paired combinatorial logit model: properties, estimation and application," Transportation Research Part B: Methodological, Elsevier, vol. 34(2), pages 75-89, February.
    7. Adler, Nicole & Pels, Eric & Nash, Chris, 2010. "High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 812-833, August.
    8. Ishii, Jun & Jun, Sunyoung & Van Dender, Kurt, 2009. "Air travel choices in multi-airport markets," Journal of Urban Economics, Elsevier, vol. 65(2), pages 216-227, March.
    9. Bhat, Chandra R., 1997. "Covariance heterogeneity in nested logit models: Econometric structure and application to intercity travel," Transportation Research Part B: Methodological, Elsevier, vol. 31(1), pages 11-21, February.
    10. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2000. "Airport and Airline Competition for Passengers Departing from a Large Metropolitan Area," Journal of Urban Economics, Elsevier, vol. 48(1), pages 29-45, July.
    11. Park, Yonghwa & Ha, Hun-Koo, 2006. "Analysis of the impact of high-speed railroad service on air transport demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(2), pages 95-104, March.
    Full references (including those not matched with items on IDEAS)

    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. Christiaan Behrens & Eric Pels, 2009. "Intermodal Competition in The London-Paris Passenger Market: High-Speed Rail and Air Transport," Tinbergen Institute Discussion Papers 09-051/3, Tinbergen Institute.
    2. Isler, Cassiano Augusto & Blumenfeld, Marcelo & Caldeira, Gabriel Pereira & Roberts, Clive, 2024. "Long-Distance railway mode choice in Brazil: Evidence from a discrete choice experiment," Research in Transportation Economics, Elsevier, vol. 104(C).
    3. Birolini, Sebastian & Cattaneo, Mattia & Malighetti, Paolo & Morlotti, Chiara, 2020. "Integrated origin-based demand modeling for air transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    4. Yen, Barbara T.H. & Mulley, Corinne & Tseng, Wen-Chun, 2018. "Inter-modal competition in an urbanised area: Heavy rail and busways," Research in Transportation Economics, Elsevier, vol. 69(C), pages 77-85.
    5. 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.
    6. Li, Zhi-Chun & Tu, Ningwen & Fu, Xiaowen & Sheng, Dian, 2022. "Modeling the effects of airline and high-speed rail cooperation on multi-airport systems: The implications on congestion, competition and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 448-478.
    7. 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.
    8. Xia, Wenyi & Jiang, Changmin & Wang, Kun & Zhang, Anming, 2019. "Air-rail revenue sharing in a multi-airport system: Effects on traffic and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 304-319.
    9. Yang, Chih-Wen & Lu, Jin-Long & Hsu, Chun-Yen, 2014. "Modeling joint airport and route choice behavior for international and metropolitan airports," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 89-95.
    10. 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.
    11. 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.
    12. 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.
    13. Hess, Stephane, 2007. "Posterior analysis of random taste coefficients in air travel behaviour modelling," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 203-212.
    14. Gundelfinger-Casar, Javier & Coto-Millán, Pablo, 2017. "Intermodal competition between high-speed rail and air transport in Spain," Utilities Policy, Elsevier, vol. 47(C), pages 12-17.
    15. Tiziana D'Alfonso & Changmin Jiang & Valentina Bracaglia, 2015. "Air transport and high-speed rail competition: environmental implications and mitigation strategies," DIAG Technical Reports 2015-15, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    16. Ilse Terpstra & Mark G. Lijesen, 2015. "The impact of high speed rail on airport competition," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(3), pages 263-275, July.
    17. Yang, Hangjun & Zhang, Anming, 2012. "Effects of high-speed rail and air transport competition on prices, profits and welfare," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1322-1333.
    18. Marcucci, Edoardo & Gatta, Valerio, 2011. "Regional airport choice: Consumer behaviour and policy implications," Journal of Transport Geography, Elsevier, vol. 19(1), pages 70-84.
    19. Bergantino, Angela Stefania & Madio, Leonardo, 2020. "Intermodal competition and substitution. HSR versus air transport: Understanding the socio-economic determinants of modal choice," Research in Transportation Economics, Elsevier, vol. 79(C).
    20. D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2016. "Air transport and high-speed rail competition: Environmental implications and mitigation strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 261-276.

    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:juecon:v:71:y:2012:i:3:p:278-288. 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: http://www.elsevier.com/locate/inca/622905 .

    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.