TY - JOUR
T1 - Consumer behaviour analysis based on income and price elasticities
T2 - The case of the air transportation in Brazil
AU - Ventura, Rodrigo V.
AU - Fernandes, Elton
AU - Aprigliano Fernandes, Vicente
AU - Cabo, Manoela
AU - Cesar Fadel, Augusto
AU - Caixeta, Rafael
N1 - Publisher Copyright:
© 2022 World Conference on Transport Research Society
PY - 2022/6
Y1 - 2022/6
N2 - Understanding consumer behaviour based on income-price elasticities of air travel demand is strategic for decision-making in civil aviation industry. The literature analyses markets on a static perspective of demand elasticity, not considering its evolution over time or its diversity throughout the territory. This paper makes use of a panel-data regression analysis method on a database of domestic scheduled flights of Brazil's National Civil Aviation Agency to investigate the passenger demand income-price elasticities for flight connections in Brazil. Its singular nature comprises measuring and comparing the elasticities in different scenarios of the recent Brazilian economic history and considering all the diversity of the country's five geographic macro-regions. The results show different elasticities throughout the territory, depending on the geographical location of the cities involved in the air links. The estimates also vary over time, influenced by the different macroeconomic conditions. By shedding light on the demand elasticity dynamics in a same air market, the paper discusses its explanatory drivers and the strategic implications for the Brazilian civil aviation sector.
AB - Understanding consumer behaviour based on income-price elasticities of air travel demand is strategic for decision-making in civil aviation industry. The literature analyses markets on a static perspective of demand elasticity, not considering its evolution over time or its diversity throughout the territory. This paper makes use of a panel-data regression analysis method on a database of domestic scheduled flights of Brazil's National Civil Aviation Agency to investigate the passenger demand income-price elasticities for flight connections in Brazil. Its singular nature comprises measuring and comparing the elasticities in different scenarios of the recent Brazilian economic history and considering all the diversity of the country's five geographic macro-regions. The results show different elasticities throughout the territory, depending on the geographical location of the cities involved in the air links. The estimates also vary over time, influenced by the different macroeconomic conditions. By shedding light on the demand elasticity dynamics in a same air market, the paper discusses its explanatory drivers and the strategic implications for the Brazilian civil aviation sector.
KW - Air transportation
KW - Consumer behaviour
KW - Elasticity of demand
UR - http://www.scopus.com/inward/record.url?scp=85132614592&partnerID=8YFLogxK
U2 - 10.1016/j.cstp.2022.04.012
DO - 10.1016/j.cstp.2022.04.012
M3 - Article
AN - SCOPUS:85132614592
SN - 2213-624X
VL - 10
SP - 1262
EP - 1272
JO - Case Studies on Transport Policy
JF - Case Studies on Transport Policy
IS - 2
ER -
