The determinants of passengers demand for the leisure air travel market: The case of Portugal

Abstract

The purpose is to analyse the determinants of the quarterly demand of passengers in Portuguese domestic leisure air travel market (between Lisbon, Oporto and Madeira, Azores Islands), from 2006 to 2010. The data refers to the routes under consideration as panel data, and the model was estimated by pooled OLS, fixed and random effects. The results were promising and provide important information, points to the following determinants: airfare, capacity, frequency and the 3rd quarter