Dynamic analysis of air travel demand in competitive island markets

Dynamic analysis of air travel demand in competitive island markets

Journal: Air Transport Management

Author: Theodore Tsekeris

Published: 2009

Abstract

This paper describes a dynamic demand model, referred to as dynamic abstract mode model, for estimating both the short- and long-term responses of air passengers to changes in relative air-sea travel cost components in competitive markets. The implementation of the model in the competitive market of Aegean islands in Greece demonstrates the importance of considering the past volumes of air passengers and relative travel cost components to explain current air travel demand.

Keywords: Dynamic demand models, Panel data, Air travel behavior, Intermodal competition, Island markets

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