| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 7436051 | Journal of Air Transport Management | 2013 | 9 Pages |
Abstract
A number of customer segments may exist in any air travel market, differing in the willingness-to-pay, income, age, time of travel or airline preferences. Not accounting for this diversity may introduce a significant variance into any choice model. In this paper we present a Segment Specific Cross-Nested Logit with Brand Loyalty (SSCNL-BL) model that explicitly accounts for this heterogeneity. The model is estimated using data from a stated preference choice experiment conducted among Australians travelling to the United States. The resulting SSCNL-BL model performs better than the more complex Mixed Logit model without the additional computational burden.
Related Topics
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Authors
Tomasz Drabas, Cheng-Lung Wu,