wilfred s. manuela jr., asian institute of management ... · wilfred s. manuela jr., asian...
Post on 21-Aug-2020
6 Views
Preview:
TRANSCRIPT
Wilfred S. Manuela Jr., Asian Institute of Management, Makati City, Philippines
Mark Friesen, QUINTA Consulting, Frankfurt, Germany
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
Car parking facilities are a major source of
commercial revenues at airports.
Most studies on commercial airport revenues
consider revenue sources other than car parking.
Our paper analyzes the factors that determine the
provision of car parking facilities at the ten largest
European airports, based on passenger data, for the
period 2011–2015.
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
Our research will identify the factors that determine
airport car parking revenues and the number of
airport car parking spaces.
Our research helps airport authorities as well as
airport managers and operators optimize their car
parking-related infrastructure to improve non-
aviation revenues and profits, resulting in a more
financially viable and profitable airport operations.
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
Commercial revenues account for some 50% of airport revenues
with retail revenues being the most significant, although there is
considerable variation by region and individual airports (Graham,
2009).
The main drivers of airport commercial revenues per passenger
include the number of transit passengers, the ratio of
commercial to total airport revenues, income, the share of
domestic and leisure travelers to total passengers, and the
number of flights (Fuerst, Gross, and Klose, 2011).
The leisure time that passengers have at their disposal inside the
airport tends to increase airport commercial revenues (Castillo-
Manzano, 2010).
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
Airport customers use airport parking facilities
infrequently but those who do park for long durations
(Airport Cooperative Research Program Report, 2014).
While airport customers pay higher parking fees, the
cost of parking normally represents a small percentage
of the total door-to-door travel cost (e.g., airfares, rental
car charges, lodging, and other costs) and customers
place high value on time and convenience (particularly
those traveling on business purposes) and some have no
option other than driving to, and parking at, the airport
(Airport Cooperative Research Program Report, 2014).
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
We collected and estimated airport-related data from
databases, airport websites, and other online sources for the
period 2011–2015
◦ London Heathrow Airport, 75.0 million passengers (2015)
◦ Paris Charles de Gaulle Airport, 65.8 million passengers (2015)
◦ Istanbul Atatürk Airport, 61.8 million passengers (2015)
◦ Frankfurt Airport, 60.9 million passengers (2015)
◦ Amsterdam Airport Schiphol, 58.2 million passengers (2015)
◦ Adolfo Suárez Madrid–Barajas Airport, 46.8 million passengers (2015)
◦ Munich Airport, 40.9 million passengers (2015)
◦ London-Gatwick Airport, 40.3 million passengers (2015)
◦ Leonardo da Vinci–Fiumicino Airport, 40.2 million passengers (2015)
◦ Barcelona El Prat Airport, 39.7 million passengers (2015)
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
The econometric model consists of two equations due
to the endogeneity of the car parking spaces variable
in the car parking revenues equation
We estimated the system of equations simultaneously
using ordinary least squares
Due to missing data for some airports in a number of
years, the estimation results are still preliminary
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
REVENUES (xy) = β0 + β1 PASSENGERS (xy) + β2 SPACES (xy)
+ β3 RATE (xy) + β4 BUS (xy) + β5 RAIL (xy) + β6 TAXI (xy) +
β7 DISTANCE (xy) + β8 GDP (xy) + β9 BUS LINES (xy) +
Where for each airport x and year y,
REVENUES = car parking revenues in € million
PASSENGER = airline passengers in million
SPACES = number of car parking spaces
RATE = maximum car parking rate or tariff per day in €
BUS = bus fare to or from the city center in €
RAIL = train fare to or from the city center in €
TAXI = taxi fare to or from the city center in €
DISTANCE = distance from city center in kilometers
GDP = gross domestic product annual growth rate (country of airport)
BUS LINES = number of bus lines to or from the airport
= error term
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
SPACES (xy) = β0 + β1 POPULATION (xy) + β2 OPTIONS
(xy) + β3 DISTANCE (xy) + β4 RAIL TRAVEL (xy) + β5
TAXI TRAVEL (xy) + β6 BUS TRAVEL (xy) +
Where for each airport x and year y,
POPULATION = catchment population in million
OPTIONS = number of alternative car parking facilities near the airport
RAIL TRAVEL = travel time to or from the city center by train in minutes
TAXI TRAVEL = travel time to or from the city center by taxi in minutes
BUS TRAVEL = travel time to or from the city center by bus in minutes
The other variables are as defined in the REVENUES equation
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
In the REVENUES equation, the number of passengers passing
through the airport, number of car parking spaces, car parking
rate or tariff, and the GDP growth rate should have a positive
relationship with car parking revenues.
Car parking revenues should decrease with an increase in bus
fare, rail fare, and taxi fare because fare increases suggest an
increase in the cost of fuel, which makes driving to the airport
more expensive.
The impact of the number of bus lines on car parking revenues
is negative since transport network connectivity discourages
people from using their cars to move around.
The impact of distance of the airport from the city proper on car
parking revenues is also negative since travel cost is higher and travel time is longer.
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
In the SPACES equation, the catchment population and longer
travel times by bus, rail, and taxi should have a positive impact
on the number of car parking spaces.
Alternative parking facilities should impact airport car parking
spaces negatively.
The distance of the airport from the city center should impact
the number of car parking spaces negatively due to the higher
cost of driving as the distance increases.
Airport distance may have a positive impact on car parking
spaces as the number of passengers in the car increases because
the cost per person of driving to the airport and parking the car
decreases as family size increases. The same argument can be
made for people with more luggage.
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
Dependent variable: Airport car parking revenues
Coefficient Std. Error t-Statistic
Constant 5850.888 525.115 11.142 ***
PASSENGERS -65.618 9.793 -6.700 ***
SPACES 0.038 0.007 5.397 ***
RATE 59.740 5.515 10.833 ***
BUS FARE -106.978 44.616 -2.398 **
RAIL FARE 105.600 14.643 7.212 ***
TAXI FARE -6.523 3.187 -2.047 **
DISTANCE -89.293 15.897 -5.617 ***
GDP 1074.280 3570.717 0.301
BUS LINES -102.910 16.686 -6.167 ***
Adjusted R2 = 0.8658 *** significant at the 1% level
No. of observations = 50 ** significant at the 5% level
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
Dependent variable: Number of airport car parking spaces
Coefficient Std. Error t-Statistic
Constant 4498.334 5510.217 0.816
POPULATION 958.044 161.445 5.934 ***
OPTIONS 730.327 207.294 3.523 ***
DISTANCE -356.565 270.824 1.280
RAIL TRAVEL 51.173 108.881 0.470
TAXI TRAVEL -130.320 132.788 -0.981
BUS TRAVEL 66.524 174.949 0.380
Adjusted R2 = 0.6193 *** significant at the 1% level
No. of observations = 50
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
The number of car parking spaces, car parking rate or tariff,
and the GDP growth rate behave as expected, that is, higher
values for these variables tend to increase car parking
revenues.
Bus and taxi fares, airport distance from the city center, and
the number of bus lines serving the airport behave as expected,
that is, higher values for these variables tend to decrease car
parking revenues.
Higher rail fares tend to increase car parking revenues while
more passengers passing through the airport tend to decrease
car parking revenues. These results appear to be
counterintuitive.
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
Only the catchment population and parking options are
statistically significant in the second equation.
Catchment population behaves as expected, that is, higher
values for this variable tend to increase the number of car
parking spaces.
The number of parking options tend to increase the number of
airport car parking spaces, which appears to be
counterintuitive, although the reverse sign may indicate that
passengers prefer airport parking due to its proximity to the
departure and arrival gates.
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
We identified and analyzed factors that impact car parking
revenues and the number of car parking spaces at 10 large
European airports for the period 2011–2015.
The results indicate that the number of car parking spaces, car
parking tariff, higher rail fares, and the GDP growth rate tend to
impact car parking revenues positively.
The results also indicate that a bigger catchment population
tends to increase the need for car parking at airports.
Overall the results suggest car parking revenues may be
improved by optimizing the number of car parking spaces
available and car parking tariffs and that a reliable rail service
between the airport and the city center does not necessarily
impact car parking revenues negatively.
ATRS 2017 World Conference University of Antwerp, Belgium 5–8 July 2017
WORK IN PROGRESS
top related