Air itinerary shares estimation using multinomial logit models

ABSTRACT

The main goal of this study is the development of an aggregate air itinerary market share model. In order to achieve this, multinomial logit models are applied to distribute the city-pair passenger demand across the available itineraries. The models are developed at an aggregate level using open-source booking data for a large group of city-pairs within the US air transport system. Although there is a growing trend in the use of discrete choice models in the aviation industry, existing air itinerary share models are mostly focused on supporting carrier decision-making. Consequently, those studies define itineraries at a more disaggregate level using variables describing airlines and time preferences. In this study, we define itineraries at a more aggregate level, i.e. as a combination of flight segments between an origin and destination, without further insight into service preferences. Although results show some potential for this approach, there are challenges associated with prediction performance and computational intensity.     

High‐speed rail cost recovery time based on an integer optimization model

With increasing gasoline prices, electric high‐speed rail (HSR) systems represent one means to mitigate overexposure to volatile prices. However, additional research is needed related to funding this infrastructure. In this paper, we develop a new integer optimization model to address this problem and use a hypothetical case study to demonstrate the approach. The objective of the approach is to minimize the time period in which the cost of HSR construction and operation can be recovered. This is an iterative process based on an integer optimization model, whose objective function is to determine the optimum recovery time (ORT), by setting the HSR ticket price and frequency. Embedded in the optimization model is a multinomial logit model for calculating the demand for HSR as a function of these decision variables, thus capturing the effects of level of service on market share. In particular, the optimization model accounts for the role of different types of subsidies toward HSR construction (one‐time subsidies at construction, annual subsidies, and subsidies depending on frequency). This method can also help determine whether an HSR system should be built or how much subsidy should be provided given a fixed expected cost recovery time. By integrating the logit model into the objective function evaluation, the effects of ticket price and service frequency on service demand can be directly captured. Copyright © 2014 John Wiley & Sons, Ltd.     

Development of railway station choice models to improve the representation of station catchments in rail demand models

ABSTRACT

This paper describes the development of railway station choice models suitable for defining probabilistic station catchments. These catchments can then be incorporated into the aggregate demand models typically used to forecast demand for new rail stations. Revealed preference passenger survey data obtained from the Welsh and Scottish Governments was used for model calibration. Techniques were developed to identify trip origins and destinations from incomplete address information and to automatically validate reported trips. A bespoke trip planner was used to derive mode-specific station access variables and train leg measures. The results from a number of multinomial logit and random parameter (mixed) logit models are presented and their predictive performance assessed. The models were found to have substantially superior predictive accuracy compared to the base model (which assumes the nearest station has a probability of one), indicating that their incorporation into passenger demand forecasting methods has the potential to significantly improve model predictive performance.     

Active school travel: homogeneity or heterogeneity? That is the question

ABSTRACT

To explain and predict active school travel (AST), most studies have not investigated to what extent considering taste heterogeneity is an important influence on AST share. The main aim of the present study was to evaluate whether considering unobserved taste heterogeneity through mixed logit models – including random coefficient and random coefficient analysis (RCA) – materially improves/influences the AST prediction compared to a simpler model – the multinomial logit (MNL) model. The database comprises 735 valid observations. The results show that, with a 10% increase in perceived walking time to school, the MNL model predicts that the AST share would decrease by 7.8% (from 18.9% to 17.4%) while the RCA model predicts that it would decrease by 8.5% (from 18.9% to 17.3%). Thus, the expected share of AST is overestimated by MNL by one-tenth of a percentage point. Although there might be random taste variations around perceived distance to school, it seems the other important policy-sensitive variables, such as safety perception, homogeneously impacts on the AST share across households with different socioeconomic and built environment characteristics. Our empirical assessment suggests that considering taste heterogeneity does not necessarily improve the accuracy of analysis for the aggregate share of the AST concerning policy-sensitive variables.     

Short-term planning and policy interventions to promote cycling in urban centers: Findings from a commute mode choice analysis in Barcelona,Spain

BackgroundCycling for transportation has become an increasingly important component of strategies to address public health, climate change, and air quality concerns in urban centers. Within this context, planners and policy makers would benefit from an improved understanding of available interventions and their relative effectiveness for cycling promotion. We examined predictors of bicycle commuting that are relevant to planning and policy intervention, particularly those amenable to short- and medium-term action.MethodsWe estimated a travel mode choice model using data from a survey of 765 commuters who live and work within the municipality of Barcelona. We considered how the decision to commute by bicycle was associated with cycling infrastructure, bike share availability, travel demand incentives, and other environmental attributes (e.g., public transport availability). Self-reported and objective (GIS-based) measures were compared. Point elasticities and marginal effects were calculated to assess the relative explanatory power of the independent variables considered.ResultsWhile both self-reported and objective measures of access to cycling infrastructure were associated with bicycle commuting, self-reported measures had stronger associations. Bicycle commuting had positive associations with access to bike share stations but inverse associations with access to public transport stops. Point elasticities suggested that bicycle commuting has a mild negative correlation with public transport availability (−0.136), bike share availability is more important at the work location (0.077) than at home (0.034), and bicycle lane presence has a relatively small association with bicycle commuting (0.039). Marginal effects suggested that provision of an employer-based incentive not to commute by private vehicle would be associated with an 11.3% decrease in the probability of commuting by bicycle, likely reflecting the typical emphasis of such incentives on public transport.ConclusionsThe results provide evidence of modal competition between cycling and public transport, through the presence of public transport stops and the provision of public transport-oriented travel demand incentives. Education and awareness campaigns that influence perceptions of cycling infrastructure availability, travel demand incentives that encourage cycling, and policies that integrate public transport and cycling may be promising and cost-effective strategies to promote cycling in the short to medium term.     

Airline competition and market frequency: A comparison of the s-curve and schedule delay models

We compare two common ways of incorporating service frequency into models of airline competition. One is based on the so called s-curve, in which, all else equal, market shares are determined by frequency shares. The other is based on schedule delay—the time difference between when travelers wish to travel and when flights are available. We develop competition models that differ only with regard to which of the above approaches is used to capture the effect of frequency. The demand side of both models is an approximation of a nested logit model which yields endogenous travel demand by including not traveling in the choice set. We find symmetric competitive equilibrium for both models analytically, and compare their predictions concerning market frequency with empirical evidence. In contrast to the s-curve model, the schedule delay model depicts a more plausible relationship between market share and frequency share and accurately predicts observed patterns of supply side behavior. Moreover, the predictions from both models are largely the same if we employ numerical versions of the model that capture real-world aspects of competition. We also find that, for either model, the relationship between airline frequency and market traffic is the same whether frequency is determined by competitive equilibrium, social optimality, or social optimality with a break-even constraint.     

Breakthrough innovations in intermodal freight transport

Breakthrough innovations, whether technological, organizational or both, are a necessity if the market share of intermodal freight transport is to expand. The main growth potential lies in the markets for flows over short distances, for perishable and high-value commodities, for small consignments, and for flows that demand speed, reliability and flexibility. It will take radical innovations to produce a breakthrough in the modal split and allow these new markets to be conquered. This special issue is based on papers presented at an international conference on freight transport automation and multimodality, held in Delft in May 2002, that are illustrative of the direction of breakthrough research and development (R&D) aimed at increasing the market share for intermodal transport.     

Identification and diagnosis of specification errors in the multinomial logit model

Multinomial logit models of travel demand are subject to a variety of specification errors that can severely affect the accuracy the models' forecasts. This paper describes some of the important sources of specification errors in logit models, presents numerical illustrations of the errors' effects on forecasts of travel behavior, and evaluates the ability of several informal and formal statistical procedures to identify and diagnose the errors. Among the tests considered, the most powerful are a test against a probit model and the McFadden, Tye and Train (1976) test based on the universal logit method. The least powerful tests are a test based on extrapolating the logit model and informal tests based on examination of the signs, t-statistics and ratios of the estimated parameters of the logit function.     

Consumer preferences for electric vehicles: a literature review

Widespread adoption of electric vehicles (EVs) may contribute to the alleviation of problems such as environmental pollution, global warming and oil dependency. However, the current market penetration of EV is relatively low in spite of many governments implementing strong promotion policies. This paper presents a comprehensive review of studies on consumer preferences for EV, aiming to better inform policy-makers and give direction to further research. First, we compare the economic and psychological approach towards this topic, followed by a conceptual framework of EV preferences which is then implemented to organise our review. We also briefly review the modelling techniques applied in the selected studies. Estimates of consumer preferences for financial, technical, infrastructure and policy attributes are then reviewed. A categorisation of influential factors for consumer preferences into groups such as socio-economic variables, psychological factors, mobility condition, social influence, etc. is then made and their effects are elaborated. Finally, we discuss a research agenda to improve EV consumer preference studies and give recommendations for further research.

Abbreviations: AFV: alternative fuel vehicle; BEV: battery electric vehicle; CVs: conventional vehicles; EVs: electric vehicles; FCV: fuel cell vehicle; HCM: hybrid choice model; HEV: hybrid electric vehicle (non plug-in); HOV: high occupancy vehicle; MNL: MultiNomial logit; MXL: MiXed logit model; PHEV: plug-in hybrid electric vehicle; RP: revealed preference; SP: stated preference.     

A statistical analysis of consumer perceptions towards automated vehicles and their intended adoption

ABSTRACT

While automated vehicle (AV) development continues to progress rapidly, how the public will accept and adopt automated vehicles remains an open question. Using extensive survey data, we apply cluster analysis to better understand consumer perceptions toward potential benefits and concerns related to AVs with regard to factors influencing their AV adoption likelihood. Four market segments are identified – ‘benefits-dominated,’ ‘concerns-dominated,’ ‘uncertain,’ and ‘well-informed.’ A random parameters multinomial logit model is then estimated to identify factors influencing the probability of respondents belonging to one of these four market segments. Among other influences (such as socio-economic and current travel characteristics), it is found that ‘Millennials’ have a higher probability of belonging to the well-informed market segment, ‘Gen-Xers’ with a lower probability to the uncertain market segment, and ‘Baby Boomers’ with a higher probability to the concerns-dominated market (relative to the ‘Great Generation’). We also study the individuals’ expressed likelihood of AV adoption using separate random parameters ordered probit estimations for each of the four market segments. The substantial and statistically significant differences across each AV consumer market segment underscore the potentially large impact that different consumer demographics may have on AV adoption and the need for targeted marketing to achieve better market-penetration outcomes.     

A structural analysis of vehicle design responses to Corporate Average Fuel Economy policy

The US Corporate Average Fuel Economy (CAFE) regulations are intended to influence automaker vehicle design and pricing choices. CAFE policy has been in effect for the past three decades, and new legislation has raised standards significantly. We present a structural analysis of automaker responses to generic CAFE policies. We depart from prior CAFE analyses by focusing on vehicle design responses in long-run oligopolistic equilibrium, and we view vehicles as differentiated products, taking demand as a general function of price and product attributes. We find that under general cost, demand, and performance functions, single-product profit maximizing firm responses to CAFE standards follow a distinct pattern: firms ignore CAFE when the standard is low, treat CAFE as a vehicle design constraint for moderate standards, and violate CAFE when the standard is high. Further, the point and extent of first violation depends upon the penalty for violation, and the corresponding vehicle design is independent of further standard increases. Thus, increasing CAFE standards will eventually have no further impact on vehicle design if the penalty for violation is also not increased. We implement a case study by incorporating vehicle physics simulation, vehicle manufacturing and technology cost models, and a mixed logit demand model to examine equilibrium powertrain design and price decisions for a fixed vehicle body. Results indicate that equilibrium vehicle design is not bound by current CAFE standards, and vehicle design decisions are directly determined by market competition and consumer preferences. We find that with increased fuel economy standards, a higher violation penalty than the current stagnant penalty is needed to cause firms to increase their design fuel economy at equilibrium. However, the maximum attainable improvement can be modest even if the penalty is doubled. We also find that firms’ design responses are more sensitive to variation in fuel prices than to CAFE standards, within the examined ranges.     

The accuracy of the multinomial logit model as an approximation to the multinomial probit model of travel demand

The multinomial probit model of travel demand is considerably more general but much less tractable than the better-known multinomial logit model. In an effort to determine the effects of using the relatively simple logit model in situations where the assumptions of probit modeling are satisfied but those of logit modeling are not, the accuracy of the multinomial logit model as an approximation to a variety of three-alternative probit models has been evaluated. Multinomial logit can give highly erroneous estimates of the choice probabilities of multinomial probit models. However, logit models appear to give asymptotically accurate estimates of the ratios of the coefficients of the systematic components of probit utility functions, even when the logit choice probabilities differ greatly from the probit ones. Large estimation data sets are not necessarily needed to enable likelihood ratio tests to distinguish three-alternative probit models from logit models that give seriously erroneous estimates of the probit choice probabilities. Inclusion of alternative-specific dummy variables in logit utility functions cannot be relied upon to reduce significantly the errors of logit approximations to the choice probabilities of probit models whose utility functions do not contain the dummies.     

A utility maximizing model of the demand for multi-destination non-work travel

The multinomial probit model of travel demand is considerably more general but much less tractable than the better-known multinomial logit model. In an effort to determine the effects of using the relatively simple logit model in situations where the assumptions of probit modeling are satisfied but those of logit modeling are not, the accuracy of the multinomial logit model as an approximation to a variety of three-alternative probit models has been evaluated. Multinomial logit can give highly erroneous estimates of the choice probabilities of multinomial probit models. However, logit models appear to give asymptotically accurate estimates of the ratios of the coefficients of the systematic components of probit utility functions, even when the logit choice probabilities differ greatly from the probit ones. Large estimation data sets are not necessarily needed to enable likelihood ratio tests to distinguish three-alternative probit models from logit models that give seriously erroneous estimates of the probit choice probabilities. Inclusion of alternative-specific dummy variables in logit utility functions cannot be relied upon to reduce significantly the errors of logit approximations to the choice probabilities of probit models whose utility functions do not contain the dummies.     

Estimating the long-term effects of different passenger car technologies on energy/fuel consumption and emissions of greenhouse gases in Europe

Abstract

A stated preference (SP) experiment of car ownership was conducted in Mumbai Metropolitan Region (MMR) of Maharashtra in India. A full factorial experiment was designed to considering various attributes such as travel time, travel cost, projected household income, car loan payment and servicing cost. Data on 357 individuals were collected which resulted in 3213 observations for the calibration of the work trip and recreational trip car ownership models. The car ownership alternatives considered 0, 1 and 2 cars. A multinomial logit framework was used to develop the car ownership model taking the household as a decision unit. The specification and results of the SP car ownership model are discussed. The observed and predicted values matched reasonably when the validity of the SP car ownership model was tested against revealed preference (RP) data. The car ownership models developed in this study exhibit a satisfactory goodness of fit. It is concluded that the SP modelling approach can be successfully used for modelling car ownership decisions of households in developing countries.     

Forecasting high-speed rail ridership using a simultaneous modeling approach

Abstract

The newly launched, June 2009, US High-Speed Intercity Passenger Rail Program has rekindled a renewed interest in forecasting high-speed rail (HSR) ridership. The first step to the concerted effort by the federal, state, rail, and other related agencies to develop a nationwide HSR network is the development of credible approaches to forecast the ridership. This article presents a nested logit/simultaneous choice model to improve the demand forecast in the context of intercity travel. In addition to incorporating the interrelationship between trip generation and mode choice decisions, the simultaneous model also provides a platform for the same utility function flowing between both the decision-making processes. Using American Travel Survey data, supplemented by various mode parameters, the proposed model improves the forecast accuracy and confirms the significant impact of travel costs on both mode choice and trip generation. Furthermore, the cross elasticity of mode choice and trip generation related to travel costs and other modal characteristics may shed some light on transportation policies in the area of intercity travel, especially in anticipation of HSR development.     

Trip chaining propensity and tour mode choice of out-of-home workers: evidence from a mid-sized Canadian city

Suburban development patterns, flexible work hours, and increasing participation in out-of-home activities are making the travel patterns of individuals more complex, and complex trip chaining could be a major barrier to the shift from drive-alone to public transport. This study introduces a cohort-based approach to analyse trip tour behaviors, in order to better understand and model their relationships to socio-demographics, trip attributes, and land use patterns. Specifically, it employs worker population cohorts with homogenous activity patterns to explore differences and similarities in tour frequency, trip chaining, and tour mode choices, all of which are required for travel demand modeling. The paper shows how modeling of these important tour variables may be improved, for integration into an activity-based modeling framework. Using data from the Space–Time Activity Research (STAR) survey for Halifax, Canada, five clusters of workers were identified from their activity travel patterns. These were labeled as extended workers, 8 to 4 workers, shorter work-day workers, 7 to 3 workers, and 9 to 5 workers. The number of home-based tours per day for all clusters were modeled using a Poisson regression model. Trip chaining was then modeled using an Ordered Probit model, and tour mode choice was modeled using a Multinomial logit (MNL) model. Statistical analysis showed that socio-demographic characteristics and tour attributes are significant predictors of travel behavior, consistent with existing literature. Urban form characteristics also have a significant influence on non-workers’ travel behavior and tour complexity. The findings of this study will assist in the future evaluation of transportation projects, and in land-use policymaking.

     

Policy Simulation for New BRT and Area Pricing Alternatives Using an Opinion Survey in Jakarta

Abstract

An area pricing scheme for Jakarta, Indonesia, is currently under review as a transportation control measure along with the operation of new bus rapid transit (BRT) system. While this scheme may be effective for congestion reduction in the central business district (CBD), provision of alternative means of transportation for auto users that are ‘pushed-out’ is of great importance to obtain public acceptance. Hence, it is necessary to simulate simultaneously the area pricing scheme and the BRT development which may serve as an alternative for assumed ‘pushed-out’ auto users. Utilizing data from an opinion survey, this paper studies how BRT and auto ridership are likely to vary as a function of traveler and system attributes. Additionally, the study attempts to evaluate the way this new travel mode is distinguished from other existing conventional transportation alternatives in Jakarta. The survey data contains socioeconomic information of over 1000 respondents as well as details of to-work/school trips to the CBD including mode, travel cost, time, etc. Respondents were asked about their willingness to shift from their current mode to BRT to make the same travel for different BRT fare levels. Modeling efforts suggest that a mixed logit model performs better in explaining choice behavior. Therefore, this model was used for policy simulation. The simulation results brought about many implications as to the tested policies. While the developed models may be applied only to future BRT corridors in which the survey was conducted, they capture the key variables that are significant in explaining mode choice behavior and present great potential for practical use in policy simulation and analysis in a large metropolitan area of the developing world.     

The inverse power transformation logit and dogit mode choice models

This paper explores the properties of inverse Box-Cox and Box-Tukey transformations applied to the exponential functions of logit and dogit mode choice models. It is suggested that inverse power transformations allow for the introduction of modeler ignorance in the models and solve the “thin equal tails” problem of the logit model; it is also shown that they allow for asymmetry of response functions in both logit and dogit models by introducing alternative-specific parameters which make cross elasticities of demand among alternatives generally asymmetric. In the dogit model, modeler ignorance and consumer captivity remain conceptually distinct. Standard logit and dogit models appear as very special “perfect knowledge” cases in broad spectra of models which also include, among others, the reciprocal extreme value or log-Weibull variants. These improvements over the simple symmetric-thin-equal-tail-perfect-knowledge logit and the symmetric-pure-captivity dogit are achieved at the cost of introducing at the most two new parameters per alternative considered in the original logit and dogit mode choice models.     

Introducing alternative fuel vehicles in Hong Kong: views from the public light bus industry

Hong Kong was the first place in the world to implement a trial scheme to convert all public light buses (PLBs) on the road from diesel to alternative fuel vehicles (AFVs). The scheme, however, did not receive much support from PLB operators. At present, there is a rich literature on households’ demand for AFVs (especially in the USA). However, there have not been many studies about the demand for commercial AFVs in the business and public transport sectors. Since light buses running on alternative fuels are not widely available in the Hong Kong market, a stated preference (SP) survey was conducted to solicit the preferences of PLB operators on eight commercial vehicle attributes and seven forms of government support. The SP data are analyzed by multinomial logit (MNL) models. Detailed analyses on market segmentation and price elasticities follow. The results are of theoretical and practical significance.     

Activity-based market equilibrium for capacitated multimodal transport systems

Empirical studies have shown that demand for multimodal transport systems is highly correlated with activity schedules of individuals. Nonetheless, existing analytical equilibrium models of multimodal systems have only considered trip-based demand. We propose a new market equilibrium model that is sensitive to traveler activity schedules and system capacities. The model is based on a constrained mixed logit model of activity schedule choice, where each schedule in the choice set is generated with a multimodal extension of the household activity pattern problem. The extension explicitly accounts for both passenger choices of activity participation and multimodal choices like public transit, walking, and vehicle parking. The market equilibrium is achieved with Lagrangian relaxation to determine the optimal dual price of the capacity constraint, and a method of successive averages with column generation finds an efficient choice set of activity schedules to assign flows over the dynamic network load capacities. An example illustrates the model and algorithm, effects similar to Vickrey’s morning commute model can be observed as a special case. A case study of the Oakville Go Transit station access “last mile” problem in the Greater Toronto Area is conducted with 166 survey samples reflecting 3680 individuals. Results suggest that a $10 fixed parking fee at Oakville station would lead to a reduction of access auto share from 54.8% to 49.5%, an increase in access transit share from 20.7% to 25.9%, and a disutility increase of 11% for the of single-activity residents of Oakville.