Airport Transfer Comparison

Comparison of airport transfers

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Comparative analysis of three major transfer airports in Northeast Asia concentrating on Incheon International Airport by means of a joint analysis.

With globalisation speeding up in recent years, the airlines industry now has a central position in the transportation of domestic and international passengers for pleasure and work. Recently, notably through the privatisation and commercialisation of airlines and the de-regulation of air transport regulations, there has been increased competitive pressure on the air transport sector, leading to an effort by each carrier to develop policies to maximise the use of the capacity of the airport where its aircraft are based.

Among these is the establishment of a globalised hub and spoke hub system by providing economic connectivity to many different types of airport, enabling airlines to increase flight efficiencies by raising passenger boards and minimising traffic demands. Those who change at the airport have different needs from those that end at the airport and would change their airport of destination to an alternate one if they had better possibilities in relation to flight service, airport operation and transfer mode (Barros et al., 2007).

It is therefore necessary for an airport to determine the transfer passengers' expectation of becoming a viable hubs. One of the ways in which many major cities to draw more transfer traffic is by highlighting the image of their own brands as a differentiating instrument is to increase awareness of their customers' brands, which will give businesses greater competitiveness, greater client experience and, eventually, more revenues (Chung, Jang, & Han, 2013).

From a geographical point of view, the IIA could be the most appropriate turntable between the three aerodromes, taking into account its medium rank. Travellers via the IIA can benefit from savings in terms of travelling times and costs from Asia to the US or back in comparison to NRT and PVG (HMC Investment Securities, 2014). Regarding the IIV, it is remarkable that the number of passenger travelling on the China and Southeast Asia - USA route has increased progressively in line with income increases in these states.

The IIA also provides more flights to China, Japan and Southeast Asia than any other airport, as shown in Figure 3. In addition, 5,070,000 of the entire passenger transfer volume was carried out in the IIA in 2010, well over 810,000 in PVG. NRT continues to lead IIA in terms of the number of transfer users in 2012; 6,860,000 for IIA compared to 5,700,000 for NRT (IIA, 2013).

The PVG transfer rates, however, have been rising recently due to the new policy that foreign travellers who change to other PVG domestic services within 24 hrs are not obliged to undergo dual entry controls. However, the number of transfer users in NRT has decreased since Haneda Tokyo Airport began offering intercontinental routes in 2010 and the Japan 2011 quake struck.

NRT nevertheless represents the closest link from East Asia to North America and remains a crucial airport for transfer travellers. IIA ( "2013") states that transfer passenger of 3,098,336 from Southeast Asia and China represented more than 45% of the 6,829,742 transfer passenger produced in IIA and almost 50% of them travelled to North America.

On the basis of more recent figures from ACI (Airport Council International)(2014), the number of 7,207,000 airport transfer orders corresponds to 17. 2 percent of the overall number of 40,786,000 passenger in 2013. More than 50% of the transfer was made between South East Asia or China and North America.

It can be deduced from the statistical data that a large proportion of South East Asia or China travellers choose IIA as a necessary transfer airport for reasons of costs rather than travelling directly to their ultimate destinations in North America. In addition to Pudong airport in China and Narita airport in Japan in face of face-to-face rivalry, Hong Kong and Beijing airports in China could be good alternative transfer points for Asia as well.

We will, however, be excluding Hong Kong and Beijing because they do not compete strongly with the ones we have chosen on the Southeast Asia-North America itinerary. Given the IIA, housing more transfer travellers among those travelling from Southeast Asia and China must be a top priorities, as Pudong and Narita airport rivalry becomes increasingly high.

Irrespective of the growing importance of transfer as a hubs airport, however, little research has been done, especially in the Northeast Asian area. Whereas earlier work stressed the importance of the regional contexts for interpreting the geographical nature of aviation, as Graham (1998) mentions, our research will seek to investigate the features that govern the competitive ability of three large transfer hubs, namely Northeast Asia's regional airport operators and airport operators, namely IA, PVG, and NRT, to acquire transfer clients from Southeast Asia and China with end points to North America.

This paper calculates the value of a given airport using a concjoint method. It is our belief that this study would give airport operators useful information for the preparation of business strategy and decision on capital expenditure priority in order to move forward as a transfer hubs in this area. The transfer passenger transfer rates will increase by 14% according to the IIA transfer passenger survey, prepared by the Korea Transport Institute in 2012.

Some 529 international air travellers changing planes at the IIA took part in the poll, 28. 3 percent is transfered from the USA, followed by Southeast Asia (24.1 percent), China (15.5 percent) and Japan (14.1 percent). It also tends to use either Korea domestic carriers, either Korea Airline (67.8%) or Asiana Airline (23.0%), which shows that the competitive position of domestic carriers is crucial in enhancing IIA transfer-rate.

It is noteworthy, according to the study, that "convenient transfer facilities" were chosen as the most beneficial feature of using IIA. Cheap tickets" and "various transfer routes" follow. In contrast, the "long duration of transit" is the least satisfying determinant for transfer travellers among respondents to the survey: a determinant that should be addressed.

Failure to visit the sights near the airport during the transfer has also proved to be a drawback. Given these determinants, it is necessary for the Institute to design various programmes and to place transfer passenger through appropriate institutions to make good use of their stay at the institution.

In addition to the above-mentioned IIA Survey, other Surveys also identified important determinants affecting the competitive position of each airport. Using the Porter approach (1980), Graham (2004) examined the airport sector and the policy choices airport have taken to affect airport competitive performance, namely "cost leadership", "differentiation" and "focus or niche".

On the basis of this analysis, the paper proposes several different ways to enhance the airport's competitiveness, i. e. with a focus on organic expansion, business development, alliance and franchise development, reduction and disposal, and in particular the LCC (Low Cost Carrier) customer strategies. Parc (2003) reasoned that the airport's competitiveness depends on'five key factors' that can be related to passengers and freight activity, which include geographic location, asset allocation, market demands, services and management factor.

Out of this survey, the most important demander was identified, comprising the levels of request for destinations of provenance (O-D) and the volume of transits and transfers for the evolution of the hub-and-spoke networks, followed by the airport services ratio in terms of the levels of user services, the nature of airport operation and the levels of tolls.

Besides the factors that influence the airport's ability to compete, the airport's ability to compete is also seen today in terms of the importance of the airport's ability to compete (Yeo, Wang, & Chou, 2013) in the context of the creation of the Aerotropolis, which is a major urban area in which airport infrastructures and businesses are located. The majority of available evidence on airport competiveness has focussed on the creation and closure of an airport (Hess and Polak, 2006, Windle and Dresner, 1995).

This means that departure and arrival travellers were important in earlier airport related surveys because of their importance for the revenue contributions to them. In order to be able to understand the behaviour of travellers when making a choice, the airport's qualities and the airline's services must be taken into account.

Kouwenhoven (2008), for example, initially classified the influencing variables on airport selection into two groups: air travel and airline-related and airport-related. Route and airline-related elements consist of the available services in terms of aircraft services and timeliness, flying times, fares, frequencies, preferential carrier schedules and destinations.

This airport related element shall include the airport reachability, inclusive of entry times, entry charges, car park requirements, luggage, customs clearance and migration services, shops, accommodation, restaurants and check-in services. An empirical test of these items in the framework of a singular carrier or airport has shown that air traffic frequencies and airport terrain availability are often regarded as the most important, while their importance varies according to the destination markets (Hess and Polak, 2006, Loo, 2008, Pels et al., 2003, Skinner, 1976).

In comparison to a number of surveys on departure passenger numbers in multiple airport areas, little is known about the particular needs of transfer users, regardless of their importance for many carriers and hubs. Since transfer means movement and maintenance at an airport, the minimisation of travel distance was extensively debated in the assessment of various terminals configuration (Bandara and Wirasinghe, 1992, Wirasinghe, 2003) and deemed indispensable to maximise operating efficiencies and minimise call time.

in 2007 attempted to investigate the perception of airport transfer passenger of transfer facility and service by using regulatory analyses related to Bandaranaike International Airport in Sri Lanka. Results have shown that transfer users consider the viewing requirements of airline information and the recruitment of safety checker personnel as key drivers for competing transfer terminals.

In 2011, Park and Jung (2011) tried to investigate whether the perception of the airport's services by travellers is influenced by different cultures. They collected the transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage transfer baggage baggage baggage transfer baggage transfer baggage transfer baggage baggage baggage baggage delivery baggage, baggage, baggage, baggage, baggage, baggage and baggage baggage baggage baggage baggage baggage Using eight aspects of aviation perceived to be of high standard, such as comprehensibility, reliability, reactivity, dependability, safety, empiricism, restaurant, duty-free shop and other amenities, it was found that the perception of the transfer user was highly dependent on their own culture.

In particular, transfer travellers who spoke English had a more favourable perception of airport operations than those who spoke either Mandarin or Jap. This is because English-speaking travellers with a West German culture have relatively lower hopes than those from other Asiatic states. This suggests that culture should be a high priority for the airport industry.

On the basis of earlier arguements, recent airport-related surveys have given great consideration to the value of the brands in order to enhance the competitive position of them. Trademark value, commonly referred to as "the sales or replacement value of a brand" (Raggio & Leone, 20077), is likely to be affected by the value of the trademark, which has a positive impact on monetary gain from a kind approach to a particular trademark.

Since a higher value brands ensures higher stakeholder value, as Kerin and Sethuraman (1999) show, further effort is needed to create a unified metrics system appropriate for each airport to control the airport brands in a strategic way. Halpern and Regmi (2011) identify five trademark classes to be used at aerodromes; 1) Location, such as land, cities, towns or villages; 2) Attractiveness, which includes touristic features; 3) Extent of service from an internationally, nationally, regional oder local point of view; 4) Celebrities, which includes royalties, politician leaders/revolutionaries or others; 5) The use of a tagline that is used widely at European aerodromes that are privately held or run by interests, vis-à-vis those that are privately held and run by public authorities, is clearly widespread in Europe.

Evaluating the IIA' s market value from a monetary point of view compared to the six largest international airport complexes (Paris Charles de Gaulle Airport, Tokyo Narita International Airport, Hong Kong International Airport, Netherlands Amsterdam Airport, Singapore Changi Airport and Shanghai Pudong Airport), Chung et al. (2013) reasoned that the IIA is only in 4th place in market value, NRT in 2nd place, while PVG in 2nd place.

In spite of some research reports on the value of brands in academia, we have learnt that research on the value of brands in the competitive environment of transfer cities has seldom been carried out. We are motivated to start this research study which examines strategy and operations differentials in the brands of the three large North East Asian cities.

The aim of our survey is to examine the competitive properties of transfer airport with a focus on market value using concjoint analyses. For example, when using an airport, since the measurements of the airport mark er, landings charges, number of towns and duty-free are known in advance, the benefit of an airport can be deduced by optimising and adding up the constructions, which can be easily done with some commercially available programs.

So far, the use of CA has been carried out in airport surveys in order to understand the airport preference of travellers in Multi-Airport Areas ( "MARs") (e.g. Loo, 2008) and to identify the main drivers that the consumer considers to be the choices of their airport of departure (e.g. Marcucci & Gatta, 2011).

CA was introduced to a very limited extent, however, especially in the transfer behaviour at the airport survey, which we examine in our report. Extensive bibliographic research in Table 2 was used in this report, the attribute of which was selected on the basis of airport sector experts interview. Used attribute in this survey include airport make, landings fees, number of liaison towns and sale of duty-free stores.

The Hess and Polak, 2005a; Hess and Polak, b; Hess and Polak, 2006a, b; Hess et al., 2007; Loo, 2008; Ishii et al., 2009, Sainz-González et al., 2011; Yoo, 1997- Airfare, Kim and Shin, 2001, Geuens et al., 2004, in-depth surveys eliminate those elements that are not appropriate to modelling customer behaviour at the airport among those selected from the pertinent publications.

So as to be able to pinpoint and categorise the most important elements in our survey, a committee of five experts (2 lecturers, 3 IIA ( Incheon Airport ) managers responsible for the passengers department) was set up. Even more important, the changes in airport taxes, as well as landings taxes, are directly applicable to customers' tariffs.

Moreover, the introduction of highly competitive airport taxes will lead to an increased transfer rate and an extension of the airport transfer services, which will ultimately affect the airport's ability to compete (Sainz-Gonzalez et al., 2011, Yoo, 1997). Richard de Neufvill (1998) found interconnectivity as a competition and Suziki ( 2007 ) and Loo ( 2008 ) categorised competition such as the number of affiliated towns and the number of carriers.

Again, this survey considered the tax free store to be an essential element, considering that consumer perceives the airport as a particular environment (Geuens et al., 2004), in which their commitment to business activity is affected by various purchasing incentives, mainly related to the use of their stay to minimise fear and bore during their airport transfer (Li and Chen, 2013).

As well as the customary needs of shoppers, the special amenities and ambience can encourage travellers to shop in the duty-free stores during the transition period. As well as joint retailers such as duty-free, grocery, beverages, passenger and recreational amenities, some have added features such as clubs, karaoke, public baths and spas (Kim and Shin, 2001 and Geuens et al., 2004) to increase revenues and make it easier for clients to enjoy the comfort of their airport experience.

In this way, the traveller has considered duty-free retailing at the airport to be one of the most important elements in determining where to go (Gillen and Lall, 2004 and Castillo-Manzano, 2010). Furthermore, our review evolves the airport brands that are strongly linked to the experiences and images of air travellers (Suzuki, 2007) and those of frequently used aircraft (Suzuki et al., 2003; Suzuki, 2007).

Lastly, the importance of the trademark attributes for the airport's ability to compete in order to draw customers to Northeast Asia is examined. Following the distribution of provisional questionnaire to an appropriate sampling of expert and responsible parties for tasks related to aviation, the most important expert interviews were carried out on IIA, NRT, PVG and those with a high degree of knowledge in the field of aviation.

It shows that it does not examine really skilled travellers on the Southeast Asia or China-North America itinerary. Results of the concjoint hypothesis presented in Table 4 give the benefit subtotal, which indicates the comparative importance of each of the four attribute levels in terms of its share in the overall value of airport transfer competitivity.

On the basis of the results of the analysis, it was found that the airport mark was 28 percent. 9 percent of the comparative value of the four factors of airport competiveness. In order to prioritise the attribute effects that affect the transfer airport's competitive position, the changes in the partial value utility were assessed for all attribute effects. It can therefore be deduced that the airport's make and costs are the most important factors in its choice as a commercial airport.

Firstly, in order to benchmark the usefulness of each attribut levels, the utility programs were analyzed together with the devaluation programs and the meaning of each layer on the basis of each attribut. Every possible mix has been designed to reflect the real situations of each airport. Consequently, it has been proposed that the IIA' attributes ratio offers the passenger the benefit of 1.52 (0.46+0.35+0.4+0.4+0.4+0.31), while each PVG/ NRT ratio offers the benefit of 0.58 (0.03+0.35+0.12+0.12+0.08) and 0.75 (0.35+0.17+0.17+0.23) for passenger transfer.

IIA has the highest rate of 53% followed by NRT (26%) and PVG (20%) among the Northeast Asian transfer airport competitors. Furthermore, the best possible combinations of each of these attributes were used in this paper to investigate the influence of the airport brands on the attractiveness of transfer travel.

30% (0.46/1. 52) for IIA, 5% (0.03/0. 58) for PVG and 47% (0.35/0. 75) for NRT. Trademark value of the three airport could be assessed by multiplied by the number of transfer users multiplied by the share of the airport Trademark that makes up the overall benefit of the combo.

Results show that for IIA and NRT, market awareness was the most important consideration, while PVG costs were the most important. Due to a large scale Chinese aviation sector investments and an ongoing airport policy focused on the Japanese capitol, Incheon International Airport (IIA), the largest airport in South Korea, is expected to face fierce competitive pressure to become the Northeast Asian Hub Airport.

For an airport to achieve a decisive edge as a local hubs, it should be able to draw both transiting and non-transiting travellers. To help airport operators, this paper has tried to assess the comparative importance of the factors that contribute to the airport transfer airport competition and further compares them in the contexts of three large airport operators, IIA (Incheon International Airport) in South Korea, PVG (Shanghai Pudong International Airport) in China and NRT (Narita International Airport) in Japan, who have started to competition transfer passenger routes between Southeast Asia or China and North America.

The conjoint was used to assess four important descriptors chosen on the basis of research and interviews: airport make, costs (landing fees), connectivity (number of connection cities) and duty-free stores. Our analyses showed that the airport mark, with a part benefit of 28.3%, is the preferential characteristic for the competitive ability of a transfer airport.

The airport trademark, as it has been used by the 1989 Market Science Institute, is a certain impact of the airport name on the choice of a particular airport by airline companies and air travellers; and the scale of the gains implied that the value of the trademark today is the decisive instrument of promotion and can be judged by the monetary value. In light of the findings of this research, IIA should thoroughly design and execute airport brand-building strategy to enhance its market value, which will play a pivotal roll in the development of a Northeast Asian airport hubs.

The IIA' s trademark image should be built for transfer travellers on the basis of Korea' own cultural and ideological heritage. The airport will feature Korea's traditional product and Korea's latest world-leading trend such as K-Pop, as well as new product presentations by international corporations such as Samsung and LG. While some of the programmes have already been implemented, efforts should be made to enhance these skills by distinguishing groups of travellers according to their age and cultural backgrounds.

In this way, travellers can use their airport experience to experience the IIA' s unique moments. The use of social network services such as Facebook and Twitter for more effective brandsarketing. Transfer carriers should develop transfer parcels and broader airline network.

In particular, tailor-made policies, as well as an appropriate system of incentives for each carrier, should be developed to win more carriers for the IIA. It also shows that it does not really examine seasoned travellers on the South East Asia or China-North America journey and that research can be carried out in the longer term by prolonging the research contexts and research times.

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