Investigation of the flight product dynamic choice problem - Preliminary results with simulated respondents

Uzi Freund-Feinstein, Shlomo Bekhor

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

In this research the dynamic choice behavior when choosing airline tickets is investigated. 600 simulated choices over a period of 30 days were created using simulated respondents and real airline itineraries. Estimation is conducted using discrete choice models (e.g., MNL, NL and CNL) with comparison between them. It is assumed that consumers will not choose their itinerary from an initial choice set, but will postpone their decision to a later time (at least one time period) trying to maximize their utilities. In addition, the variables on-time performance (OTP) and frequent flier program (FFP) were estimated. Main finding is that passengers do postpone their choice decisions for an average of 2.5-5.6 days over a choice period of 30 days. In addition, FFP membership and OTP were found to have significant effect on consumers' choices. Although as simulated results should be taken cautiously, these results implies that dynamic behavior do take place and should be further investigated with real respondents.

Original languageEnglish
Title of host publication52nd AGIFORS Annual Proceedings 2012 - Symposium and Study Group Meeting
Pages135-152
Number of pages18
StatePublished - 2012
Event52nd AGIFORS Annual Symposium and Study Group Meeting 2012 - Phoenix, AZ, United States
Duration: 9 Oct 201213 Oct 2012

Publication series

Name52nd AGIFORS Annual Proceedings 2012 - Symposium and Study Group Meeting
Volume1

Conference

Conference52nd AGIFORS Annual Symposium and Study Group Meeting 2012
Country/TerritoryUnited States
CityPhoenix, AZ
Period9/10/1213/10/12

All Science Journal Classification (ASJC) codes

  • Aerospace Engineering

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