Origin and Destination Survey
(DB1B)
3/31/14
Prepared by: Lance Sherry
1
Airline Origin and Destination Survey
Databank 1B (DB1B)
• DB1B has a 10% random sample of airline
passenger tickets
• Frequency: Quarterly
• Range:1993—Present
• Source: TranStats, US Department of
Transportation, Bureau of Transportation
Statistics:http://www.transtats.bts.gov/TableI
nfo.asp?DB_ID=125
2
Three Data-bases
(1) Coupon – operating carrier, origin airport,
destination airport, number of passengers, fare
class, coupon type, trip break indicator.
(2) Market – directional market characteristics:
origin airport, destination airport, prorated airfare,
number of coupons.
(3) Ticket – individual – summary characteristics of
each itinerary including: reporting carrier,
origin/destination, prorated airafe, number of
market coupons)
3
Relationship
Ticket (e.g. Roundtrip)
Markets
Markets
Markets
Coupons
4
Contents
Itin
ID
Mar
ket
ID
Year
Quar
ter
Sequ
yenc
e
No.
Cou
pons
No.
of
Pax
X
X
X
Cou
pon
X
X
X
X
Mar
ket
X
X
X
X
X
X
Tick
et
X
X
X
X
X
Fare
Class
Mar
ket
Fare
Rou
ndtri
p
Fare
X
X
X
Dist
ance
Origi
n
Dest
Carri
er
X
X
X
X
X
X
X
X
X
X
X
X
Itin
Yield
X
Marketfare is prorated Roundtrip Fare
5
Contents and Relationships
ABQ
ATL
DFW
6
Fare Class
•
•
•
•
•
•
•
C Unrestricted Biz
D Restricted Biz
F – Unrestricted 1st Class (6%)
G – Restricted 1st Class (9%)
U – Unknown
X – Unrestricted Coach (72%)
Y – Restricted Coach (11%)
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Data Filtering
• Delete records with 0 or NULL fares
• Delete records with fares < $50 and > $5000
– Or least 10%, greatest 10%
• Delete records with trip distance < 200nm and
trip distance > 10,000
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Airfare vs Stage-length (DCA Q1 2013)
10000
Saipan
9000
8000
Guam
Stage-length (nm)
7000
6000
Honolulu,
Anchorage, …
5000
4000
3000
Airfares > $2000?
2000
1000
0
0
2000
4000
6000
8000
10000
12000
Airfare ($)
9
Airfare DCA_SFO
Airfare DCA-SFO
25
Best Fit:
Airfare = (Ln(Cumulative_Demand) - Ln(Market_Size))/Airfare_Sensitivity
15
Parameters:
Market_Size – maximum demand
Airfare_Sensitivity – akin to price elasticity
10
5
0
0
50
100
150
200
250
300
350
400
450
500
550
600
Airafe ($)
Airfare (DCA-ATL)
600
Drop these
Frequency
Frequency
20
400
200
0
0
100 200 300 400 500 600 700 800 900 1000
Airafe ($)
10
Airline Revenues from Airfares
• Adjusted Airfare for Fees
• Airfare Revenue for Airlines= 0.949(Airfare) + $.44
• Subtract Taxes and Fees
– Ticket Tax 7.5%
– Segment Fee (e.g $3.50)
– Passenger Facility Charge (e.g. $2.50)
• Add Ancillary Fees
– Baggage
– Fuel
11