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Keywords:
Catchment area
Airport choice modeling
Airport market share
Airport competition
a b s t r a c t
Although much empirical research exists on the factors that drive passenger airport choice, not much is
known about the related topic of airport catchment area size. This paper presents a novel methodology to
assess the size of airport catchment areas and the airports market shares therein using a MNL passenger
choice model. The methodology is applied to Amsterdam Airport Schiphol. The results show that the size
of its catchment area differs considerably by destination. Schiphols market share within its catchment
area declined between 2005 and 2011 due to increased competition from airports located to the south
and southeast. Airports may use the presented methodology to evaluate the spatial nature of their catchment areas to understand passenger airport choice and the competitive forces in their respective hinterland regions. In addition, the methodology shows airports the effects of changes to service level offerings
(in terms of frequencies and fares) on their catchment area and the market shares therein. Furthermore,
the methodology may be of use to policymakers to estimate the competitive position of airports in the
OD-markets served and to assess the effects of infrastructure investments on catchment area size and airport market shares.
2012 Elsevier Ltd. All rights reserved.
1. Introduction
An airports catchment area is the area surrounding the airport
from which it attracts its passengers. The size of the catchment
area as well as the airports market share within the catchment
area depends on the driving factors behind passenger airport
choice, such as accessibility and service level offered by the airport
in terms of fares and frequencies vis--vis surrounding airports.
With the development of more and more regional airports, passengers have a wider choice of airports than ever before. This
means that airport catchment areas increasingly overlap. As a result airports need to share the potential market in their catchment
area with an increasing number of other airports. This means that
catchment areas are not static, but evolve over time depending on
relative changes in the service offerings of airports.
Catchment areas are usually depicted in a rather simplistic
manner, i.e. by drawing concentric circles around airports. The radii of these circles are often based on an arbitrary assumption of a
maximum allowable access time of around 2 h (Marcucci and Gatta, 2011). Although this simple approach is straightforward and
relatively easy to apply and interpret, it has some important drawbacks: First of all, it results in a static image of an airports potential
market. Changes in the factors that drive airport passenger choice
will not have any effect on catchment area size as these factors are
not taken into account. Second, market shares within the catch Tel.: +31 20 525 1672; fax: +31 20 525 1686.
E-mail address: r.lieshout@seo.nl
0966-6923/$ - see front matter 2012 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.jtrangeo.2012.07.004
ment area remain unclear. This means that it ignores the fact that
airport market shares tend to decrease when one moves further
away from the airport. Third, the catchment area is assumed to
be similar for all destinations offered from the airport, which
seems unrealistic. An airport offering a relatively high service level
to a certain destination compared to surrounding airports, might
well attract passengers from hinterland regions over 2 h away.
For instance passengers in remote regions with a limited number
of departure airports to choose from are often forced to travel well
over 2 h to reach a departure airport. Such an airport might still
have a large market share in those far-away regions as competition
from other airports is limited or non-existent. On the other hand,
airports offering a low service level compared to competing airports will probably attract few people from distant regions and a
radius of 2 h might be too large.
Airports are well-served to evaluate the spatial nature of their
catchment areas to understand passenger airport choice and the
competitive forces in their respective hinterland regions (Fuellhart,
2007). This allows them to identify the regions where market share
is relatively low and the reasons behind it. In 2002, Humphreys
and Francis showed that catchment area size is a signicant determinant of an airports attractiveness to airlines. Airports may
therefore also use information on their catchment area in marketing efforts towards airlines. Catchment area analysis is also of
interest to policymakers as they use projected levels of passenger
demand in the decision-making process.
In this paper a novel methodology is presented to measure the
size of airport catchment areas as well as the airports market
28
2. Literature review
Catchment area analysis is a largely ignored topic in existing literature. This has to do with the lack of useful data on catchment
areas, i.e. the place of residence/stay of airport users. Such empirical evidence on catchment areas is only available through passenger enquiries that do not exist on a large scale (Dobruszkes et al.,
2011). In this paper a methodology is presented which is not
dependent upon such data.
The size of an airports catchment area is determined by the
choices passengers in the airports hinterland make. Do they use
the airport at hand or do they prefer another airport? To understand how catchment areas are shaped and evolve over time, one
therefore needs to understand the choices passengers make in
choosing an airport. Over the years many studies have been published on airport choice. Most of these used some form of the logit
model (Kroes et al., 2005) to determine passenger airport choice.
Few of the studies however expressed the implications of airport
choice in the spatial dimension. An exception is the study by Fuellhart (2007) which provides a spatial analysis of the market of Harrisburg International Airport (MDT). This specic market showed a
strong distance decay, especially in those areas where the airport
faces competition from other airports.
The studies on airport choice do provide useful insights into the
driving factors behind airport choice. Most studies show that airport choice is largely determined by access time, ight frequency
and/or airfares (Ashford and Bencheman, 1987; Bradley, 1998;
Brooke et al., 1994; Cohas et al., 1995; Augustinus and Demakopoulos, 1978; Furuichi and Koppelman, 1994; Harvey, 1986, 1987;
Hess and Polak, 2005, 2006; Humphreys and Francis, 2002; Ishii
et al., 2009; Jiang-Tao, 2008; Lian and Rnnevik, 2011; Loo et al.,
2005; Loo, 2008; Mason, 2000; Ndoh et al., 1990; Ozaka and Ashford, 1989; Pels et al., 2001, 2003; Skinner, 1976; Thompson and
Caves, 1993; Windle and Dresner, 2002; Zhang and Xie, 2005).
The relative importance of the three factors however varies between the studies. This is because the studies focus on (1) different
dimensions (airport choice in isolation or together with airline,
route, purpose and access mode), (2) survey type (revealed or stated preference or both), (3) different geographical areas and (4)
model specication (from from standard MNL to more advanced
mixed logit models) (Marcucci and Gatta, 2011).
Business travellers appeared more sensitive to access time and
frequency, whereas leisure passengers showed greater sensitivity
towards airfares (Harvey, 1987; Pels et al., 2003; Hess and Polak,
2005; Zhang and Xie, 2005; Loo, 2008; Ashford and Bencheman,
1987; Thompson and Caves, 1993; Bradley, 1998). Due to their
higher values of time, business passengers have a tendency for
shorter access time and higher ight frequencies. Higher frequencies limit schedule delay, the time difference between the desired
departure time and the next best available departure time. Also
higher frequencies contribute to reliability. When one misses a
ight a high frequency allows the passenger to take the next ight
in a relatively short time interval. Business travellers are not com-
29
costs) (Ben-Akiva and Lerman, 1985). This means that rst all travel alternatives available to the passengers must be identied. For
the landside, one should identify all possible access modes, which
generally include: car, train, bus and taxi. Due to lacking data on
public transport frequencies between the hinterland regions and
departure airports, only the car has been included as access mode
for now.
On the airside all direct ights (with their frequencies), offered
by the airport for which the catchment area analysis is made, need
to be identied. In addition all competing ight options from other
airports in the hinterland are to be established. OAG airline schedules are used to provide information on the routes and frequencies
offered directly from each airport. Especially on long-haul ights
however, a signicant number of passengers use indirect ight
alternatives. As opposed to direct connections, indirect connections contain a stop at an intermediate hub airport.1 The indirect
ight options are added by identifying all viable indirect options
using the NetCost model. This model was rst presented by Heemskerk and Veldhuis (2006a,b) and developed by Veldhuis and Lieshout
(2009).
The market share of airport x in the market between hinterland
region r and destination y for passengers with travel motive m is
given by the MNL model:
P
Pr;x;y;m P
h;a e
U r;x;h;y;m;a
U r;x;h;y;m;a
x;h;a e
where freqr,x,h,y,a is the ight frequency between region r, via departure airport x, possibly via hub airport h to nal destination airport y
offered by airline/alliance a, access costsr,x,m is the out of pocket costs
related to the landside trip between region r and departure airport
x, for passengers with travel motive m, faresx,h,y,m,a is the out of pocket fare costs related to the airside trip between departure airport x,
possibly with a transfer at hub h to nal destination airport y with
airline/alliance a, for passengers with travel motive m, access time
costsr,x,m is the landside time costs related to the trip between region r and departure airport x, for passengers with travel motive
m, airside time costsx,h,y,m,a is the airside time costs related to the trip
between departure airport x, possibly with a transfer at hub h to nal destination airport y with airline/alliance a, for passengers with
travel motive m and am is the parameter indicating the sensitivity to
changes in travel and time costs for passengers with travel motive
m.2
1
A hub airport is an airport at which at least one airline is coordinating its incoming
and outgoing ights in such a way as to optimize transfers between these ights.
2
This parameter was calibrated with available MIDT-data, the best t was obtained
for a = 0.01 for the business segment and a = 0.02 for the leisure segment.
Access costsr;x;m
where costs per km is the average car costs per kilometre, including
fuel, maintenance, insurance and depreciation,3 distance (km)r,x is
the landside distance in kilometres between hinterland region r
and departure airport x and car passengersm is the average number
of passengers per car, for passengers with travel motive m.4
The access distances between hinterland regions r and departure airports x were obtained from an online route planner using
web scraping technology.
3.2.3. Airfares
Reliable data on airfares is hard to come by. Therefore a fare
model was used whose parameters were obtained by econometric
analysis using MIDT data for Amsterdam Schiphol Airport. The
analysis showed that distance, market concentration, the presence
of a low cost carrier and the circuity and transfer times associated
with indirect travel alternatives all had a signicant effect on
airfares:
(
faresx;h;y;m;a
e4:1650:214NST x;y 0:005NST x;y 0:002NST x;y HHIx;y 0:345HHIx;y 0:034Dlcc0:105Ddirect ; m leisure
2
e4:0640:296NST x;y 0:008NST x;y 0:039NST x;y HHIx;y 0:564HHIx;y 0:364Dlcc0:323Ddirect ; m business
4
30
CNU x;y;a
X
freqx;h;y;a qx;h;y;a
where CNUx,y,a is the connectivity offered by airline/alliance a between departure airport a and nal destination airport y and qx,h,y,a
is the the quality of the indirect ight frequency.
Connectivity levels are obtained by weighing frequency levels
for quality, using a quality index. This way, the quality aspect is accounted for when calculating the HHI. For details on how to weigh
frequencies for quality, see Veldhuis (1997), Burghouwt and Veldhuis (2006), de Wit et al. (2009) and Burghouwt et al. (2009).
Aggregating the squares of the connectivity shares of each of the
competing airlines (alliances) in a specic market between x and
y results in the HHI of the market.
HHIx;y
X CNU x;y;a 2
P
a
a CNU x;y;a
The values of travel time for both motives were calibrated using MIDT data. The
best t was obtained with a value of 30 dollars per hour for leisure travelers and
65 dollars per hour for business travelers.
This implies that the penalty factors for circuity and transfer
time are adjusted with a factor of almost 3 for short-haul routes
with a nonstop ight time of say 3 h. The penalty factors for
long-haul routes with a direct ight time of say 12 h are adjusted with a factor little over 2.
With formula (1) airport market shares in the hinterland were
obtained for individual destinations. By weighing these market
shares with the size of each destination in terms of departing passengers, one obtains a weighted market share for airport x in hinterland region r:
Pr;x;m
X
y
paxr;x;y;m
Pr;x;y;m P
y paxr;x;y;m
10
seat capacityx
0:791
seat capacityy
1:037
distancex;y
11
31
tude of both airports. The yearly seat capacities for all departure
and destination airports were determined using OAG airline schedules. The coefcients were obtained by econometric regression
analysis using MIDT data on passenger numbers and OAG data
on airport seat capacities. The gravity model passenger estimates
for each city-pair now only need to be assigned to the various hinterland regions. Regions close to Schiphol will obtain a higher
share of the gravity estimates. The utility values are used to calculate this share. In addition, regions with a larger population will
have a larger share in the gravity estimates. Therefore the share
also depends on the population share of a region.
4. Results
The methodology presented is applied to measure the catchment area of Amsterdam Airport Schiphol and its market shares
therein. This section shows how these differ between destinations
and have they have evolved over time.
For destinations which are offered directly from multiple competing airports, airport catchment areas are generally relatively
small as the markets need to be shared with several competing airports. Airports that serve unique destinations on the other hand do
not need to share these markets with competitors and will attract
most of the market, resulting in large catchment areas. The competing airports that have been included in the analysis are summarised in Table 1.
Fig. 1 shows Schiphols catchment area and market shares
therein for two destinations that differ considerably with respect
to the level of hinterland competition: Malaga (AGP) and Xiamen
(XMN). Although Schiphol offers a rather high quality product to
Malaga, with attractive fares due to the fact that the ights are
operated by low cost carriers, it needs to share the market with a
large number of other airports in the hinterland. To the south, airports such as Eindhoven, Rotterdam, Brussels and Charleroi also offer direct ights to Malaga. And towards the east many German
airports offer direct ights to Malaga as well, with Frankfurt, Niederrhein, and Dsseldorf offering most direct connections. Most of
these connections are also operated by low cost carriers. In addition a large number of indirect connections are available, but these
are relatively unattractive as they involve a rather large travel
time, due to circuity ight time and transfer time. Because of the
high level of competition from other airports in the hinterland,
the market share of Schiphol decreases rapidly when one moves
towards the south or east.
For ights to Xiamen on the other hand, Schiphol hardly faces
any competition from nearby airports. In fact, none of the airports
in Table 1 offer direct ights to Xiamen. Airports such as Paris
Charles de Gaulle, Frankfurt Brussels and Dsseldorf do offer indirect connections, either via Schiphol or hubs airports in Asia (Bang-
Table 1
Competing airports in the hinterland of Amsterdam Airport Schiphol.
Country
Airport
Netherlands
GRQ
ENS
LEY
RTM
EIN
MST
BRU
ANR
OST
CRL
LGG
LUX
Belgium
Luxemburg
Groningen
Enschede
Lelystad
Rotterdam
Eindhoven
Maastricht
Brussels
Antwerp
Ostend
Charleroi
Liege
Luxembourg
Country
Airport
Germany
BRE
HAM
HAJ
DUS
NRN
CGN
FMO
PAD
DTM
HHN
FRA
STR
Bremen
Hamburg
Hanover
Dsseldorf
Niederrhein (Weeze)
Cologne/Bonn
Muenster
Paderborn
Dortmund
Frankfurt (Hahn)
Frankfurt Main
Stuttgart
32
Malaga (AGP)
Xiamen (XMN)
Fig. 1. Catchment area for Amsterdam Airport Schiphol and its market shares therein for ights to Malaga and Xiamen, business passengers, 2011.
2011
Fig. 2. Catchment area for Amsterdam Airport Schiphol and market shares weighted over all destinations offered, business passengers, 2011 and change since 2005.
2011
Fig. 3. Catchment area for Amsterdam Airport Schiphol and market shares weighted over all European destinations offered, business passengers, 2011 and change since 2005.
market shares for Schiphol for all European destinations offered direct and indirect from the airport, including the market share
changes since 2005. Fig. 4 presents the same information for all
33
2011
Fig. 4. Catchment area for Amsterdam Airport Schiphol and market shares weighted over all intercontinental destinations offered, business passengers, 2011 and change
since 2005.
34
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