Demand Analysis for Air Passenger Service in U.S. City-Pair Markets

Chi, Junwook; Koo, Won W.; Lim, Siew Hoon

doi:10.5399/osu/jtrf.49.1.2531

Cited by 4 publications

(3 citation statements)

References 9 publications

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“…The variable of ln(total scheduled international flight seats) is regressed with its lagged value (the first lag) and other four exogenous variables, including ln(GDP per capita), ln(tourism marketing expenditure), fuel prices and the exchange rate (AUS vs. USD), as well as obtaining the predicted value of ln(total scheduled international flight seats). This IV technique provides an unbiased estimate of the predicted value of ln(total scheduled international flight seats) that is asymptotically unrelated with the error term in the forecasting model (Chi et al, 2010; Hsiao and Hansen, 2011; Rey et al, 2011). *Explanatory variable is significant at 0.10 significance level. **Explanatory variable is significant at 0.05 significance level. ***Explanatory variable is significant at 0.01 significance level. …”

Section: Empirical Findings and Discussionmentioning

confidence: 99%

International arrivals forecasting for Australian airports and the impact of tourism marketing expenditure

Tsui

Balli

2016

Tourism Economics

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An airport’s international passenger arrivals are susceptible to exogenous and endogenous factors (such as economic conditions, flight services, fluctuations and shocks). Accurate and reliable airport passenger demand forecasts are imperative for policymaking and planning by airport and airline management as well as by tourism authorities and operators. This article employs the Box–Jenkins SARIMA, SARIMAX and SARIMAX/EGARCH volatility models to forecast international passenger arrivals for the eight key Australian airports (Adelaide, Brisbane, Cairns, Darwin, Gold Coast, Melbourne, Perth and Sydney). Monthly international tourist arrivals between January 2006 and September 2012 are used for the empirical analysis. All the forecasting models are highly accurate with the lower values of mean absolute percentage error, mean absolute error and root mean squared error. The findings suggest that the international passenger arrivals of Australian airports are affected by positive and negative shocks and tourism marketing expenditure is also a significant factor influencing the majority of Australian airports’ international passenger arrivals.

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Section: Empirical Findings and Discussionmentioning

confidence: 99%

International arrivals forecasting for Australian airports and the impact of tourism marketing expenditure

Tsui

Balli

2016

Tourism Economics

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“…Therefore, this study developed econometric models to investigate New Zealand's domestic tourism demand and growth. Following the demand function of Chi, Koo, and Lim (2010), this study specified New Zealand's domestic tourism demand and growth as a function of the LCC's seat capacity (ASKs), GDP per capita, two RTIs (accommodation, food and beverage), transport costs (aviation fuel price and petrol price), the exchange rate, other exogenous variables (the global financial crisis of 2008/09 and the Christchurch earthquakes of 2011), and seasonal dummies. Importantly, the rapid development and expansion of the LCC's operations (Jetstar) within New Zealand's domestic aviation market and its impact on domestic tourism have been less studied than international tourism.…”

Section: Model Specifications and Econometric Methodsmentioning

confidence: 99%

“…During the panel data regression analysis, the problem of endogeneity in Model 1A may provide inconsistent estimators or biased estimation results. Note that the endogeneity effect violates the assumptions of ordinary least squares (OLS), and thus the OLS estimator is biased, inconsistent and no longer the best linear unbiased estimator (BLUE) (Chi et al, 2010). In this study, the variable ln(LCC's ASK) it in Model 1A can be endogenous, as an increase in airline seat capacity for an airport increases the number of tourists and holidaymakers using airline services to travel to the region where the airport is located, which, in turn, influences the total seat capacity scheduled by airlines.…”

Section: Model Specifications and Econometric Methodsmentioning

confidence: 99%

Does a low-cost carrier lead the domestic tourism demand and growth of New Zealand?

Tsui

2017

Tourism Management

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h i g h l i g h t sUnderstand the impact of LCC on New Zealand's domestic tourism demand and growth. Five New Zealand key regions were included in this study. LCC's services, GDP per capita, the regional tourism indicators, and land transport cost affected New Zealand's domestic tourism. Findings have implications for strategic planning for tourism authorities and operators, airlines and airports. a b s t r a c tThis study aims to provide a better understanding of the impact of New Zealand's low-cost carrier (LCC) on domestic tourism demand and growth. The panel data regression model and the two-stage leastsquare (2SLS) model (aims to control for the endogeneity effects) are used to empirically investigate the impact of LCC and the key determinants affecting New Zealand's domestic tourism using five regions (Auckland, Canterbury/Christchurch, Dunedin, Queenstown, and Wellington) from June 2009 to July 2015. The findings suggested that the LCC's services, GDP per capita, the regional tourism indicators (accommodation, and food and beverage), and land transport costs affected New Zealand's domestic tourism. The policy implications of the key finding regarding the significance of the LCC's operations on New Zealand's domestic tourism (local/regional tourism authorities and tourism operators), airline competition between incumbent airline (Air New Zealand) and the LCC (Jetstar), and airport authorities are discussed.

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Price Elasticity of Demand for Domestic Air Travel in the United States: A Robust Quasi-Experimental Estimation

Escañuela Romana,

Torres-Jiménez,

Carbonero-Ruz

2023

Atl Econ J

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Demand Analysis for Air Passenger Service in U.S. City-Pair Markets

Cited by 4 publications

References 9 publications

International arrivals forecasting for Australian airports and the impact of tourism marketing expenditure

International arrivals forecasting for Australian airports and the impact of tourism marketing expenditure

Does a low-cost carrier lead the domestic tourism demand and growth of New Zealand?

Price Elasticity of Demand for Domestic Air Travel in the United States: A Robust Quasi-Experimental Estimation

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