Inter-Island Travel Demand Response with Discrete Choice Models: Functional Form, Forecasts, and Elasticities

This paper examines variations in travellers' choice of transport mode for inter-island trips when journey conditions are changed, either in the total time spent on the journey, the fare level, or in the provision of additional supply. The route studied is the route between Gran Canaria and Tenerife, where three transport modes are available: plane, jet-foil, and ferry. Two model structures are tested, and discrete model theory investigates the presence of income effect. Model predictions are compared with observed outturn for two policy changes. © The London School of Economics and the University of Bath 2002