Research in the choice behavior of air travelers has evolved to include an analytical focus on variation in the sensitivities of travelers to factors influencing itinerary choice. Some choice studies have moved beyond a focus on assumed representative, mean-level sensitivities toward a goal of representing the distribution of preferences across a sample. The mixed multinomial logit model has served as a valuable means of estimating such distributions of air travel preferences, including studies of business travelers, impacts of airport level-of-service attributes, distributions of willingness-to-pay (WTP), and information-processing strategies. Does the insight gained in previous studies, focusing on preferences in mature markets with relatively high per capita rates of air travel activity, apply to markets with low frequencies of airline patronage? This study centers on a survey of travelers in Tehran, Iran, a low-frequency air travel market. The analysis incorporates tests of a full range of distributions of random parameters to determine whether the impacts of restricting distributions allow only normality and confirms the potential to improve model fit with alternative distributions. The estimated distributions of WTP measures confirm the value of accounting for preference heterogeneity in the analysis of choice of air itinerary behavior in a low-frequency market and yield lower mean WTP values relative to analysis that omits the effects of preference heterogeneity.
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