The User Costs of Air Travel Delay Variability

Tinbergen Institute Discussion Paper 13-056/VIII

32 Pages Posted: 9 Apr 2013

See all articles by Paul Koster

Paul Koster

VU University Amsterdam - Department of Spatial Economics

Eric A. J. H. Pels

Vrije Universiteit - Department of Spatial Economic

Erik T. Verhoef

VU University Amsterdam - Department of Spatial Economics; Vrije Universiteit Amsterdam, School of Business and Economics; Tinbergen Institute

Date Written: April 9, 2013

Abstract

We derive the expected user costs of US domestic air travel delay variability taking into account scheduling behavior of travelers. Travelers do not only consider mean arrival delays, but also face scheduling costs because they arrive too early or too late at their destination. The model allows travelers to anticipate arrival delay variability by choosing an earlier flight. We show that the expected user costs of US air traffic delays are underestimated by 16% if arrival delay variability is ignored.

Keywords: air traffic delay, travel time variability, scheduling, value of reliability

JEL Classification: R4

Suggested Citation

Koster, Paul and Pels, Eric A.J.H. and Verhoef, Erik T., The User Costs of Air Travel Delay Variability (April 9, 2013). Tinbergen Institute Discussion Paper 13-056/VIII, Available at SSRN: https://ssrn.com/abstract=2247352 or http://dx.doi.org/10.2139/ssrn.2247352

Paul Koster (Contact Author)

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

Eric A.J.H. Pels

Vrije Universiteit - Department of Spatial Economic ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31-20-4446049 (Phone)
+31-20-4446004 (Fax)

Erik T. Verhoef

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 020 4446094 (Phone)
+31 020 4446004 (Fax)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

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