What is the Value of Time for Airline Passengers?

Clearly people value their time, and air travel is no exception. Various examinations lead us to an estimate of $0.80 per minute. We expect that aircraft using the WheelTug system can save air travelers a minimum of 7 minutes. Airlines have an opportunity to reflect greater time savings and efficiency in higher fares; this opportunity represents almost $800 every flight. With standard utilization, airlines can earn an extra $1.3 million per aircraft every year. View the slides.

There is a great deal of literature on the subject of the value of time, and how it relates to airlines' on-time performance (OTP). Here is a selection of relevant material.  (Further suggestions welcome.)


Government and trade association documents

• FAA Policy Guidance - Treatment of Time
  
• Provision of market research for value of travel time savings and reliability
  
• 2015 IATA Global Passenger Survey
  (OTP greatly influences brand perception)
  

 

News articles, blogs, etc.

• Can Technology Save the Air Travel Industry From Its Delay Problem?
  
• Connecting Flights vs. Nonstops: Which is Cheaper
  
• Do You Know What Your Time Is Really Worth?
  
• Calculator reference in the above article
  
• For India's airlines, the battle this time is over time, not price
  
• How departure times impact airline competition and the role aviation authorities play
  
• Skyscanner analysis reveals the value of time to air-travellers
  (lower value for long-haul flights, where time savings are a relatively smaller portion of overall travel time)
  
  
• Why Airlines Make Flights Longer on Purpose
  
• Why Airlines Now Like Connecting Passengers More Than Non-Stop
  
• Why Does My Connecting Flight Cost Less Than a Nonstop?
  
• Why Are Nonstops More Expensive than Connecting Flights?
  
• Flight delays cost $32.9 billion, passengers foot half the bill
  

 

Academic research / White papers (may require registration / subscription)

• Characterization of Delay Propagation in the US Air Transportation Network
  
• Developing Airline Segmentation Based on The On-time Performance (sic)
  
• The effect of air traffic delays on airline prices
  
• Improving On-Time Performance and Operational Dependability
  
• Inside Airlines' Struggle to Balance Profitability and Performance
  
• Measuring Air Carrier Passengers' Values of Time
  
• Methodology for Valuing Aviation Travel Delay
  
• Navigating Through Operational Turbulence
  
• Passenger Value of Time, Benefit-Cost Analysis and Airport Capital Investment Decisions
  
• Quantifying the Impact of Flight Predictability on Strategic and Operational Airline Decisions
  
• Total Delay Impact Study
  

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