This paper investigates how the value of airline passenger time varies by trip component and how the calculation of value of time can be related to capital investments specific to each component. Travel time is often a significant consideration in benefit–cost analysis for airport projects. The empirical results reported in this paper are based on a stated preference survey and subsequent model estimation. The survey used two conjoint exercises—one related to airport ground access and in-airport time components and a second covering attributes related to the flight itinerary. It was found that values of time differ by trip segment and travelers’ trip purpose.
Get full access to this article
View all access options for this article.
References
1.
Revised Departmental Guidance on Valuation of Travel Time in Economic Analysis. U.S. Department of Transportation, 2014.
2.
LandauS., GoslingG., AdlerT., SarmientoS., SmallK. A., and WilligesC.. ACRP Web-Only Document 22: Passenger Value of Time, Benefit Cost Analysis, and Airport Capital Investment Decisions, Vol. 2. Final report. Transportation Research Board of the National Academies, Washington, D.C., 2015.
3.
BeckerG. A.Theory of the Allocation of Time. Economic Journal, Vol. 75, 1965, pp. 493–517.
4.
OortC.The Evaluation of Travelling Time. Journal of Transport Economics and Policy, No. 3, 1969, pp. 279–286.
5.
DeSerpaA.A Theory of the Economics of Time. Economic Journal, Vol. 81, 1971, pp. 828–846.
6.
Jara-DíazS.Allocation and Valuation of Travel-Time Savings. In Handbook of Transport Modelling (HensherD. and ButtonK., eds.), Pergamon Press, Amsterdam, Netherlands, 2000, pp. 303–319.
7.
Jara-DíazS.On the Goods-Activities Technical Relations in the Time Allocation Theory. Transportation, Vol. 30, 2003, pp. 245–260.
8.
De BorgerB., and Van DenderK.. Transport Tax Reform, Commuting and Endogenous Values of Times. Journal of Urban Economics, Vol. 53, 2003, pp. 510–530.
9.
De BorgerB., and FosgerauM.. The Trade-Off Between Money and Time: A Test of the Theory of Reference-Dependent Preferences. Journal of Urban Economics, Vol. 64, 2008, pp. 101–115.
10.
Jara-DíazS.Travel Demand and Value of Time. In Transport Economic Theory. Elsevier, Amsterdam, Netherlands, 2007.
11.
SmallK., and VerhoefE.. Value of Time and Reliability. In The Economics of Urban Transportation. Routledge, London, 2007.
12.
NolandR., and SmallK.. Travel-Time Uncertainty, Departure Time Choice, and the Cost of Morning Commutes. In Transportation Research Record 1493, TRB, National Research Council, Washington, D.C., 1995, pp. 150–158.
13.
BatesJ., PolakJ., JonesP., and CookA.. The Valuation of Reliability for Personal Travel. Transportation Research Part E: Logistics and Transportation Review, Vol. 37, 2001, pp. 191–229.
14.
HessS., AdlerT., and PolakJ.. Modelling Airport and Airline Choice Behaviour with the Use of Stated Preference Survey Data. Transportation Research Part E: Logistics and Transportation Review, Vol. 43, 2007, pp. 221–233.
15.
PelsE., NijkampP., and RietveldP.. Airport and Airline Choice in a Multiairport Region: An Empirical Analysis for the San Francisco Bay Area. Regional Studies, Vol. 35, No. 1, 2001, pp. 1–9.
16.
PelsE., NijkampP., and RietveldP.. Access to and Competition Between Airports: A Case Study for the San Francisco Bay Area. Transportation Research Part A: Policy and Practice, Vol. 37, No. 1, 2003, pp. 71–83.
17.
HessS., and PolakJ.. Mixed Logit Modelling of Airport Choice in Multi-Airport Regions. Journal of Air Transport Management, Vol. 11, No. 2, 2005, pp. 59–68.
18.
HessS., and PolakJ.. Exploring the Potential for Cross-Nesting Structures in Airport-choice Analysis: A Case-Study of the Greater London Area. Transportation Research Part E: Logistics and Transportation Review, Vol. 42, 2006, pp. 63–81.
19.
HessS., and PolakJ.. Airport, Airline and Access Mode Choice in the San Francisco Bay Area. Papers in Regional Science, Vol. 85, No. 4, 2006, pp. 543–567.
20.
LouviereJ., HensherD. A., and SwaitJ. D.. Stated Choice Methods Analysis and Applications. Cambridge University Press, Cambridge, United Kingdom, 2000.
21.
CollinsA., RoseJ. M., and HessS.. Interactive Stated Choice Surveys: A Study of Air Travel Behaviour. Transportation, Vol. 39, No. 1, 2012, pp. 55–79.
22.
AdlerT., FalzaranoC. S., and SpitzG.. Modeling Service Trade-Offs in Air Itinerary Choices. In Transportation Research Record: Journal of the Transportation Research Board, No. 1915, Transportation Research Board of the National Academies, Washington, D.C., 2005, pp. 20–26.
23.
WarburgV., BhatC., and AdlerT.. Modeling Demographic and Unobserved Heterogeneity in Air Passengers’ Sensitivity to Service Attributes in Itinerary Choice. In Transportation Research Record: Journal of the Transportation Research Board, No. 1951, Transportation Research Board of the National Academies, Washington, D.C., 2006, pp. 7–16.
24.
HessS., and AdlerT.. An Analysis of Trends in Air Travel Behaviour Using Four Related SP Datasets Collected Between 2000 and 2005. Journal of Air Transport Management, Vol. 17, No. 4, 2011, pp. 244–248.
25.
TheisG., AdlerT., ClarkeJ.-P., and Ben-AkivaM. E.. Risk Aversion to Short Connections in Airline Itinerary Choice. In Transportation Research Record: Journal of the Transportation Research Board, No. 1951, Transportation Research Board of the National Academies, Washington, D.C., 2006, pp. 28–36.
