Origin and Destination Survey (DB1B)origin airport, destination airport, prorated airfare, number of...
Transcript of Origin and Destination Survey (DB1B)origin airport, destination airport, prorated airfare, number of...
Origin and Destination Survey (DB1B)
3/31/14
Prepared by: Lance Sherry
1
Airline Origin and Destination Survey Databank 1B (DB1B)
• DB1B has a 10% random sample of airline passenger tickets
• Frequency: Quarterly
• Range:1993—Present
• Source: TranStats, US Department of Transportation, Bureau of Transportation Statistics:http://www.transtats.bts.gov/TableInfo.asp?DB_ID=125
2
Three Data-bases
(1) Coupon – operating carrier, origin airport, destination airport, number of passengers, fare class, coupon type, trip break indicator.
(2) Market – directional market characteristics: origin airport, destination airport, prorated airfare, number of coupons.
(3) Ticket – individual – summary characteristics of each itinerary including: reporting carrier, origin/destination, prorated airafe, number of market coupons)
3
Markets
Relationship
Ticket (e.g. Roundtrip)
Markets
Markets Coupons
4
Contents
Itin ID
Market ID
Year Quarter
Sequyence No.
Coupons
No. of Pax
Fare Class
Market Fare
Roundtrip Fare
Distance
Origin
Dest Carrier
Itin Yield
Coupon
X X X X X X X X X X X X
Market
X X X X X X X X X X X
Ticket
X X X X X X X X X X X
Marketfare is prorated Roundtrip Fare
5
Contents and Relationships
ABQ ATL DFW
6
Fare Class
• C Unrestricted Biz
• D Restricted Biz
• F – Unrestricted 1st Class (6%)
• G – Restricted 1st Class (9%)
• U – Unknown
• X – Unrestricted Coach (72%)
• Y – Restricted Coach (11%)
7
Data Filtering
• Delete records with 0 or NULL fares
• Delete records with fares < $50 and > $5000
– Or least 10%, greatest 10%
• Delete records with trip distance < 200nm and trip distance > 10,000
8
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
0 2000 4000 6000 8000 10000 12000
Stag
e-l
en
gth
(n
m)
Airfare ($)
Airfare vs Stage-length (DCA Q1 2013)
Airfares > $2000?
Saipan
Guam
Honolulu, Anchorage, …
9
Airfare DCA_SFO
0
5
10
15
20
25
0 50 100 150 200 250 300 350 400 450 500 550 600
Fre
qu
ency
Airafe ($)
Airfare DCA-SFO
0
200
400
600
0 100 200 300 400 500 600 700 800 900 1000
Fre
qu
en
cy
Airafe ($)
Airfare (DCA-ATL)
Drop these
Best Fit: Airfare = (Ln(Cumulative_Demand) - Ln(Market_Size))/Airfare_Sensitivity Parameters: Market_Size – maximum demand Airfare_Sensitivity – akin to price elasticity
10
Airline Revenues from Airfares
• Adjusted Airfare for Fees
• Airfare Revenue for Airlines= 0.949(Airfare) + $.44
• Subtract Taxes and Fees – Ticket Tax 7.5%
– Segment Fee (e.g $3.50)
– Passenger Facility Charge (e.g. $2.50)
• Add Ancillary Fees – Baggage
– Fuel
11