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A Research of the Air Transport Market from Taipei to Vancouver

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The air route from Taipei to Vancouver has three fly direct airlines (China Airline, Eva Air, and Air Canada) and two transit-flying airlines with transit waiting time under four hours (Cathy and Japan Airline). Therefore, this market can be divided into two objective markets.

This research, using the Binary Logit Model, found the key factors affecting travellers behaviour include: travel time, ticket price, monthly spending, and travel objectives. Travellers also prefer direct flying if they focus on travel time, do not care about ticket price, have high monthly spending , or travel for short trips; otherwise, they prefer transit-flying. The research also found that 79% of the direct-flying travellers prefer transit-flying if transit waiting time was less than an hour and spend less than USD$800 monthly. Furthermore, the research also found that 75% of transit-flying travellers would prefer to take direct flying if the airline ticket price difference is under USD$100, and their monthly spending for flying is more than USD$700. The result can be applied on FFP (Frequent Flyer Program) database marketing with Production Rules and also can be applied on the airline ticket pricing policy.
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Document Type: Research Article

Publication date: September 1, 2005

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