Passenger Value of Time, Benefit-Cost Analysis and Airport Capital Investment Decisions, Volume 2: Final Report (2015) / Chapter Skim
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Pages 15-34
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From page 15... ...
2 DEFINING THE COMPONENTS OF VALUE OF TIME Analysis of the value of time can seem very complicated. People spend their time in many ways during travel -- in a vehicle, walking, waiting, and so forth -- and they do so under many different situations (for example, travel to work, travel to leisure or personal business activities, or travel in the course of work)
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Borger and Fosgerau (2008)
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There are several crucial implications of this theory: • The value of time can be expected, on average, to rise with the wage rates of the traveler or of other members of the traveler's household. If, as is common, the available measure is household income rather than the wage rate, the value of time is likely to rise with income.
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example, the frequency of being 30 minutes late, or the difference between the median and the 80th percentile of the distribution of travel times across days.6 Some studies present the percentage of trips falling into different arrival bands (e.g., 20 percent of trips are up to 10 minutes early, 50 percent of trips are on-time, and 30 percent of trips are up to 20 minutes late) 7, while others present a probability of delay along with the mean delay across delayed trips8.
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When travel time is uncertain, the traveler cannot precisely choose any arrival time, but instead must choose a travel strategy based on the distribution of uncertain travel times that are faced.12 For example, a traveler with a strong penalty for arriving late at the destination will often plan on a "buffer" by departing earlier than would otherwise be necessary. The result is that most often the traveler suffers some (relatively small)
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scheduling costs of airport access via road travel. Meanwhile, an approximation to this approach would be to assume a rather general parametric distribution, such as a gamma distribution, whose solution has been found analytically by Koster, Verhoef, and Kroes (2009)
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• The value of reliability is likely to depend strongly on scheduling flexibility. When people don't care much about the time they depart or arrive, travel time uncertainty is not very important to them.
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often holding in the air for landing clearance, but this has become less common as air traffic control instead has attempted to shift those delays to the ground at the departure airport.) Third, there are delays beyond those built into schedules, caused by such factors as unusual runway congestion, bad weather, faulty aircraft, and late crew arrival.
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Travel Time Reliability in Air Travel In considering how to apply the lessons of past research on travel time reliability discussed in the previous section, it is worth discussing in more detail how travel time uncertainty affects air travel in particular. The airline traveler can suffer two different consequences of unexpected delays.
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delay can be somewhat estimated while waiting in a check-in or security screening line, reducing anxiety while allowing the traveler to more accurately judge the danger of missing a flight -- factoring in the possibility that staff will invite people with close departures to move ahead in the queue. A number of other strategies are also relevant, although difficult to analyze rigorously.
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can now obtain airline on-time statistics fairly easily, but how many travelers actually use this information and how do they extrapolate estimates of the schedule delay costs they may incur from the data? 2.3 Valuation of Individual Components of Time in Air Travel A good way to advance understanding of the value of time and value of reliability in air travel is to note that such travel involves many distinct travel segments, each involving time that might be made shorter or longer by actions taken by air carriers or terminal operators.
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ground-side access time. Survey evidence is needed to measure this perceived dispersion, which may differ from objectively measured dispersion.
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before reaching the runway, which may be extra onerous due to the stress of not being sure if the plane will take off on-time. To the best of the Research Team's knowledge, the issue of differences in the perceived value of time involved in delays while in the aircraft compared to those incurred waiting to board the aircraft or in-aircraft travel time generally has not been investigated.
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In the case of international trips, immigration and customs add another layer of unpleasantness and/or uncertainty, similar to check-in and security at the origin airport. Component 7: Ground-side egress time, including deplaning and walking to baggage claim or terminal exit (but not picking up baggage)
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1) Airport ground access time 2)
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the trip involves longer blocks of uninterrupted time, a fact that Eurostar actively uses in its marketing on the London to Paris and Brussels routes. 2.5 Other Considerations Several additional factors are likely to affect values of time and reliability for air travel.
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delays ripple through the rest of their network, airlines often cancel flights in order to bring demand closer to the available capacity. In some cases, they are forced to cancel the flights anyway because the aircraft or crews scheduled to operate them are delayed somewhere else in the network.
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current research project handled changing technology by asking the respondents about the actual technologies they used or encountered. Surveys also need to pay careful attention to travelers' scheduling desires, constraints, and general degree of flexibility, because these strongly affect the value of reliability.
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Evidence in the literature suggests that data from SP surveys can be used to produce reliable measures of monetary valuations for different service attributes (Louviere, et.
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effects. The work described in Theis et al.
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