Origin and Destination Survey (DB1B)

3/31/14

Prepared by: Lance Sherry

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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/TableInfo.asp?DB_ID=125

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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)

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Markets

Relationship

Ticket (e.g. Roundtrip)

Markets

Markets Coupons

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Contents

Itin ID

Market ID

Year Quarter

Sequyence No.

Coupons

No. of Pax

Fare Class

Market Fare

Roundtrip Fare

Distance

Origin

Dest Carrier

Itin Yield

Coupon

X X X X X X X X X X X X

Market

X X X X X X X X X X X

Ticket

X X X X X X X X X X X

Marketfare is prorated Roundtrip Fare

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Contents and Relationships

ABQ ATL DFW

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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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0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

0 2000 4000 6000 8000 10000 12000

Stag

e-l

en

gth

(n

m)

Airfare ($)

Airfare vs Stage-length (DCA Q1 2013)

Airfares > $2000?

Saipan

Guam

Honolulu, Anchorage, …

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Airfare DCA_SFO

0

5

10

15

20

25

0 50 100 150 200 250 300 350 400 450 500 550 600

Fre

qu

ency

Airafe ($)

Airfare DCA-SFO

0

200

400

600

0 100 200 300 400 500 600 700 800 900 1000

Fre

qu

en

cy

Airafe ($)

Airfare (DCA-ATL)

Drop these

Best Fit: Airfare = (Ln(Cumulative_Demand) - Ln(Market_Size))/Airfare_Sensitivity Parameters: Market_Size – maximum demand Airfare_Sensitivity – akin to price elasticity

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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

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