Value of travel time, price and income elasticities Sample Clauses

Value of travel time, price and income elasticities. Understanding a passenger’s willingness to pay as well as the reaction to a price increase of a particular travel alternative is very valuable in the determination of different passenger profiles. This section hence outlines important factors and shows differences in regard to region covered or passenger type considered. Table 4: Definition of value of time and elasticities of demand (data: XxXxxxxx, 2001) Concept Definition Value of time (willingness to pay) The amount of money a passenger is willing to pay in order to save a unit (i.e. minute) in travel time, keeping overall utility constant. Price elasticity of demand The (percentage) change in the amount demanded (i.e. of a travel alternative) considering a one per cent change in the price of this alternative. Income elasticity of demand The (percentage) change in the amount demanded (i.e. of a travel alternative) considering a one per cent change in the income of a person (traveller). Different studies elaborate on passengers’ willingness to pay and respective values of time in regard to air travel as well as other transport modes (see Table 6). These values strongly depend on the various factors outlined in the previous sections and depicted in Figure 26. User characteristics Household composition Trip purpose Demographic and socio-economic conditions Value of (travel) time External factors Local environment Weather Travel conditions Physical or psychological amenities Urban vs. inter- urban journeys Waiting and walking times Amount of time savings Interchange facilities Use of travel time Total duration of the trip Time of day Figure 26: Parameters influencing the value of travel time (own de piction) In regard to air travel, a range of studies investigated the airport access choice parameters including time and price of different alternatives. Tsamboulas et al. (2008) consider the case of Athens airport and passengers’ willingness to pay in order to reduce airport access time. The authors differentiate by travel purpose, access mode, and passenger origin. The results imply that business travellers have a higher willingness to pay, that willingness to pay of private mode users exceeds that of public transport ones, and interurban travellers have a higher one than urban passengers. Although only tested for the case of Athens, this study gives important insight into the distinction by different parameters. Xxxx et al. (2003) also assess airport access choice, here with an application to potentially co...
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