A service quality model of air travel demand: An empirical study
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Abstract
The demand for air passenger travel represents a simultaneous system in which traffic, fare and service quality, in the form of expected delay times, are jointly determined. An econometric model of air passenger travel based on the concept of service quality competition is estimated for domestic American city-pairs during the 1973–1977 regulatory period. Service quality is shown to be a significant determinant of air traffic, and the results are used to provide some indication of the relative effects deregulation is likely to have on fare and service quality across markets.