Competition between airlines and railways in Japan focusing on the travel time

Kyoko Manaka; Satoru Hashimoto; Tomoaki Nakamura; Takao Goto

doi:10.1016/j.eastsj.2022.100086

Competition between airlines and railways in Japan focusing on the travel time

Kyoko Manaka, Satoru Hashimoto, Tomoaki Nakamura, Takao Goto

Faculty of Business and Commerce

Research output: Contribution to journal › Article › peer-review

Abstract

This study estimates the price elasticity of demand per airline route using a demand function and airfare function with Japanese data including the access and egress cost to clarify the relationship between airlines and railways by focusing on the travel time. The study also estimates the access and egress cost elasticity of demand per airline route to explore the effect of the access and egress cost on the demand. From the results of estimation, We conclude that reducing the total travel time would increase the airline demand and change the relationship between airlines and railways. Additionally, we consider that passengers would be more sensitive to the cost in the case that the average access and egress cost ratio exceeds 30% than in the case that the average ratio is under 30%.

Original language	English
Article number	100086
Journal	Asian Transport Studies
Volume	8
DOIs	https://doi.org/10.1016/j.eastsj.2022.100086
Publication status	Published - 2022 Jan

Keywords

Access and egress cost elasticity
High-speed railway
Logit model
Price elasticity of demand
Seemingly unrelated regressions

ASJC Scopus subject areas

Transportation

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10.1016/j.eastsj.2022.100086

Cite this

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title = "Competition between airlines and railways in Japan focusing on the travel time",

abstract = "This study estimates the price elasticity of demand per airline route using a demand function and airfare function with Japanese data including the access and egress cost to clarify the relationship between airlines and railways by focusing on the travel time. The study also estimates the access and egress cost elasticity of demand per airline route to explore the effect of the access and egress cost on the demand. From the results of estimation, We conclude that reducing the total travel time would increase the airline demand and change the relationship between airlines and railways. Additionally, we consider that passengers would be more sensitive to the cost in the case that the average access and egress cost ratio exceeds 30% than in the case that the average ratio is under 30%.",

keywords = "Access and egress cost elasticity, High-speed railway, Logit model, Price elasticity of demand, Seemingly unrelated regressions",

author = "Kyoko Manaka and Satoru Hashimoto and Tomoaki Nakamura and Takao Goto",

note = "Funding Information: This study is supported by the Aviation Policy Research Association in Japan. Funding Information: This work was supported by JSPS KAKENHI Grant Number JP20K01996 . Publisher Copyright: {\textcopyright} 2022",

year = "2022",

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doi = "10.1016/j.eastsj.2022.100086",

language = "English",

volume = "8",

journal = "Asian Transport Studies",

issn = "2185-5560",

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T1 - Competition between airlines and railways in Japan focusing on the travel time

AU - Manaka, Kyoko

AU - Hashimoto, Satoru

AU - Nakamura, Tomoaki

AU - Goto, Takao

N1 - Funding Information: This study is supported by the Aviation Policy Research Association in Japan. Funding Information: This work was supported by JSPS KAKENHI Grant Number JP20K01996 . Publisher Copyright: © 2022

PY - 2022/1

Y1 - 2022/1

N2 - This study estimates the price elasticity of demand per airline route using a demand function and airfare function with Japanese data including the access and egress cost to clarify the relationship between airlines and railways by focusing on the travel time. The study also estimates the access and egress cost elasticity of demand per airline route to explore the effect of the access and egress cost on the demand. From the results of estimation, We conclude that reducing the total travel time would increase the airline demand and change the relationship between airlines and railways. Additionally, we consider that passengers would be more sensitive to the cost in the case that the average access and egress cost ratio exceeds 30% than in the case that the average ratio is under 30%.

AB - This study estimates the price elasticity of demand per airline route using a demand function and airfare function with Japanese data including the access and egress cost to clarify the relationship between airlines and railways by focusing on the travel time. The study also estimates the access and egress cost elasticity of demand per airline route to explore the effect of the access and egress cost on the demand. From the results of estimation, We conclude that reducing the total travel time would increase the airline demand and change the relationship between airlines and railways. Additionally, we consider that passengers would be more sensitive to the cost in the case that the average access and egress cost ratio exceeds 30% than in the case that the average ratio is under 30%.

KW - Access and egress cost elasticity

KW - High-speed railway

KW - Logit model

KW - Price elasticity of demand

KW - Seemingly unrelated regressions

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Competition between airlines and railways in Japan focusing on the travel time

Abstract

Keywords

ASJC Scopus subject areas

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