Passenger Value of Time, Benefit-Cost Analysis and Airport Capital Investment Decisions, Volume 1: Guidebook for Valuing User Time Savings in Airport Capital Investment Decision Analysis (2015) / Chapter Skim
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2 METHODOLOGY FOR VALUING AVIATION TRAVEL DELAY 2.1 Value of Time Breakdown by Trip Segment As part of this study, the project team conducted surveys of 1,260 passengers traveling on flights between 172 different origin airports and 148 different destination airports throughout the United States. These were "stated preference" surveys; they asked travelers to select among various combinations of alternative scenarios that involved (a)
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of time guidance. The composite is designed for use only in those situations where information on the trip purpose of traveling passengers is unavailable.
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For a specific BCA, it is important to limit the analysis to the delayed passengers that might be affected by a proposed investment. For example, a weather-related improvement would not be expected to benefit passengers delayed due to airline mechanical issues.
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consequences of missing an outbound flight are more severe than the consequences of taking more time to reach events or meet family, friends and business associates at the arrival end. There may also be time-of-day considerations that may differ between airport access and egress trips.
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has "household income" data, it becomes necessary to convert these data into "personal income" This guidebook suggests two methods for this type of conversion: 1) The 2012 Statistical Abstract of the United States reports U.S.
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Table 3: Proportion of Air Passengers in Each Personal Income Range by Reported Household Income (2013 values in 2013 dollars) Household Income Personal Income Less than $75,000 $75,000 - $199,999 $200,000 and More Business Travelers Less than $75,000 100% $75,000 - $99,999 27% 73% $100,000 - $149,999 19% 81% $150,000 - $199,999 6% 94% $200,000 - $249,999 7% 56% 37% Leisure Travelers Less than $75,000 100% $75,000 - $99,999 37% 63% $100,000 - $149,999 31% 69% $150,000 - $199,999 12% 88% $200,000 - $249,999 15% 41% 44% Source: ACRP 03-19 National air passenger survey 2.2 Analysis Elements The pages which follow lay out a five-step screening and planning process that can be used when considering the value of travel time and delay reduction associated with a proposed project.
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• Step 2: Identify Relevant Time Categories - For projects that pass Step 1, identify the specific categories of air, ground and/or terminal delay that are expected to change because of the given type of project. • Step 3: Calculate Change in Travel Times - Determine the difference in travel time or travel delay between "implement improvement" and "base case" scenarios for each of the categories identified in Step 2.
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However, capacity thresholds may be reached at a future year as air traffic grows as a result of the improvements. The analyst must ensure that volume/capacity threshold effects are taken into account, because they can affect the delay calculations and their valuation over the lifecycle of a benefit-cost analysis.
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Users of this guide must therefore take care to ensure that BCA of any capital investment accounts for the change in labor (as well as capital) costs involved in reducing airport user time.
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