Catchment Area Research

The most commonly used term for catchment area is the area and population from which a city or service
attracts visitors or customers. In most of the definitions, it will come down to a geographical area in which
students, customers and patients, etc. are eligible to attend a certain place to use a service, a general
catchment area definition can be best defined as “a geographical area in which a certain service attracts its
target market” or, in other words, “the likeliness of people living within a geographical area, travelling to a
certain service”.

Within aviation, the most well-known catchment area definition is represented by the likeliness of a potential
passenger travelling to a certain airport to make use of the offered services; whereas flights are the services
offered by airlines located at the airport. According to SEO Economical Research (2011), an airport’s catchment
area can be best defined as “The geographical region from which the airport attracts its local passengers”. It
can be assumed that the region will change due to diverting traffic from one airport to the other.

Defining the catchment area, the target market is the group of passengers most likely to choose a specific
airport as their preferred airport. Within the catchment area definition, the aviation market is a recurring and
important term. The term “market” has two meanings in aviation. It may refer to a region, vicinity of an airport,
city, or catchment area as the origin or destination of air traffic. Another meaning may refer to the “source”
market for outbound demand, or it may be a “destination” market for inbound traffic.

Catchment areas, usually are depicted by drawing concentric circles around the airports where the radius of
the circle is based on an assumption of a maximum access time of around two hours or 200 km. Next to this
assumption, the radius is also based on a geographical area in which the population is captive in choosing a
certain airport, taking into account the propensity to fly of that population. As this two hours or 100-200 km is
a straightforward approach, it draws a static image of the airport’s catchment area since it ignores factors that
drive passengers’ airport choice and impact the catchment area.

However, this approach does not take into account all the market (different types of passenger, cargo or
maintenance serices) gravitating towards the airport as there is also the problem of the non-correspondence
between the place of residence and the location from which the passenger reaches the airport.

When only focusing on the origin of the passengers’ journeys, the main focus is on the outbound market of an
airport, while focusing on both the origin and destination of the passengers’ journeys will cause differentiation
between the specific outbound and inbound market of an airport. Differentiation between inbound and
outbound markets is crucial because the understanding of the airport served by the specific market explains
the size and influence of the catchment area. both access and market variables play important roles in
aggregate decisions. Nevertheless, travellers, or a group of travellers, may have a variety of choices and will
respond differently. Next to the assumption passengers’ airport choice has no effect on the size of the
catchment area, it also assumes there is no change in market shares within the catchment area and the
catchment area is assumed to be similar for all destinations (Lieshout, 2012)

The definition of the catchment area is better understood by the differentiation between the markets or better
said the airport product offered to the specific market or the region. Therefore, it is crucial to understand the
region that the airport will serve by identifying the specific markets that take place. Airports that are
geographically nearby each other have overlapping catchment areas in which they try to attract the same
passenger; this also can be called competition, but also, a shift in this paradigm can be seen by thinking of
airports as nodes or hubs of connectivity for the region, each airport (node on the network) supporting each
other and the region to enhance, on a collaborative manner and real-time.

Therefore, it is key to identify the proper catchment area and the market, therefore, it is needed the
understanding the local as well as the regional characteristics, i.e., the city pair (edge) dimension of the market.
A catchment area may be treated as the sum of the influences of the airport concerned on the market for air
services. The market advantage of a given airport over other airports is a consequence of a number of factors,
as the market relations of an airport depend both on the specific characteristics of the city or region served and
on the network of connections offered. As regards the latter, the key factors are identified in the next section.
Methodology to determine the Catchment area
This section describes the methodology of determining Queretaro airport's catchment area on the basis of
user’s (passenger, cargo, private jets, etc) airport choice behaviour, see Figure X. The methodology was
developed based on the premise that for the identification of airport market power it is needed to consider the
region and the connectivity that the airport provides to the region as engine for development.

To begin with, it is needed to define the concept of airport's catchment area, for this study, the catchment area
is defined by the differentiation between the markets served, or better said the airport product offered to the
specific market or the region. It is key to identify the proper catchment area and the market, therefore, it is
needed the understanding the local as well as the regional characteristics, i.e., the city pair (edge) dimension of
the market. Therefore, the catchment area of an airport will be influenced indirectly by the number and
character of the air routes available from other airports.

Once the concept of airport's catchment area is determined, the identification of the product-market for the
airport's catchment area is required. It is proposed to start by looking at the potential market power of airports
distinguishing between the passenger, the airline and the region/nation’s view. There are several external and
internal factors influencing users’ (passengers’ and cargos') choice; these factors are described in the next
section. In this step, the identification of the specific product offered by the airport is needed.

This will lead to the third step, understanding potential of catchment area. The potential market of the region
can be classified using the characteristics of the market served. Thus a catchment area may be treated as the
sum of the influences of the airport concerned on the market for air services, considering how regional socio-
economic forces of gravity contribute to the development of the network of connections offered by the airport.
After all, airports are meant to respond to a specific demand. It can also be interpreted that the catchment
area is the portion of the market where a given airport dominates over other airports.

The concept of The identification Understanding

airport's of the product- potential of
catchment area market catchment area

Catchment area parameters

Product-market

- Passenger traffic and its route development. This scenario proposes that Querétaro Airport will be a full-
passenger airport member of the Mexico City Airport System.

It is proposed various categories of passengers based on the type of traffic: diverted, linkage and newly
generated traffic; based on their commuting purpose: Tourism: inbound; including festivals, cruises, casino

Tourism: outbound to other domestic and international destinations

Business inbound and outbound

OFW originating from the region

Visiting Friends and Relatives: inbound and outbound

- Cargo traffic and its route network and type of cargo. This scenario proposes that the airport is centered
mainly in cargo operations, “the cargo hub for Mexico”.

- MRO and production of parts. This PMC will shape Querétaro Airport a major MRO airport for main carriers
and/or lease companies, and the cargo option for parts of the region/country production sites.

- Regional Airport: Here, the airport serves mainly the regional needs for connectivity; Querétaro Airport will
reserve its full development potential to support the regional economy and needs for connectivity. Then the
main issue is to determine what regions in Mexico and the world does Querétaro airport wants to be
connected to and for what reason(s), economic, cultural, or social.

- Military use with civil co-use: Querétaro Airport will become predominantly a military airport with limited civil
use.

- Research, test, and training Airport: Queretaro Airport will predominantly be used as a research, test, and
training facility to test new aircraft types, train highly qualified staff for Mexico and Latin America, and drive
sustainable aviation in this part of the world.

Traffic forecast:categories

Cargo:

Perishables: flowers, mango’s, vegetables, fisheries

High Value goods

The size of the catchment area differs considerably by parameters as:

 origin of the passengers’ journeys: the main focus is on the outbound market of an airport
 Destination;
 Access time; Ground access time to the user’s origin place to the airport a passenger travels from.
 Access mode; The different ways to travel to the departure airport.
 The service level of the airport;
 Airport competition;
 Passenger type (leisure, business, transfer, Employed abroad Visiting Friends and Relatives EVFR,
 millennial Young and adventurous, the Millennial traveler wants the overall experience not just for
themselves but their families. Millennial families is one of the fastest growing travel groups. They feel
that one of the best things they can do for their children is to expose them to the world through
travelling.).

Since passenger choice is directly linked with the catchment area, it is important to understand how
passengers’ choices are affected by traffic and implement the airport system including all airports within the
airport system.

 There is a lack of analyses on passengers’ behaviour within a certain catchment area.

 Connectivity needs
 the propensity to fly in that region.
 air journey level of service

 Airfares; The price airlines charge for the passengers as in ticket price. Airfares are directly linked to
the airline type and the service level the airline offers.
  Airline: The airline has a direct link with the service level. The airline can be a network carrier, a LCC or
even a charter airline. Charter airlines mostly operate their network for tour operator companies.

 Flight frequency;
 Flight times;
 Connection flights;
 Access costs;
 Aircraft type;
 Schedule delays;
 Probability to be on time;
 Frequent flyer benefits;
 Number of airlines;
 Shopping areas;
 Check-in delays.

 –  air connections offered,

 –  choice of carriers (traditional, low-cost, etc.),
 –  accessibility of the airport (duration and cost of travel to and from the airport),
 –  quality of service, etc.
 unction of the area served (e.g. a tourism role generating increased passenger volumes),
 –  demographic potential of the catchment area,
 –  airport’s location.

An airport’s network of connections offering a unique direction compared to other airports

may considerably extend the catchment area of even a relatively small airport. It must be
remem-

The parameters also distinguish diverse categories of passengers:

 Captive market: O/D Passengers who most likely depart from Queretaro Airport;
 Non-captive market: O/D Passengers who have a choice.
 Transfer market: Group of passengers who could choose to use Queretaro Airport as a transfer airport.

The passengers who travel according these journey purposes are:

- Leisure passengers distinguish themselves as passengers with holiday purposes. These passengers are
most likely to choose between a wide range of destinations. This flexibility causes the leisure
passenger to be more price sensitive and, as a result of this, more willing to travel greater distances
for a
- departure airport.
- Passengers Employed abroad and Visiting Friends and Relatives (EVFR) could have less discretion
with regard to their travel and narrow choice of destinations. The time sensitivity can vary according
to whether they are flying for pleasure or for a particular occasion or event.
- Business passengers tend to have a fixed destination and be most time sensitive. Consequently, they
would be more likely to travel to the most proximate airport to their point of origin.
 -
-

Othe classification of passengers can be:

 Feeding hubs
 Hume of a carrier

These parameters enable the catchment area to define a shift on its concept, in how passengers’ choices within
the Airport catchment area will be influenced.

The effects of the spillover of Mexico City Airport already cast a long shadow. When Santa Lucia, Toluca,
Puebla, Cuernavaca and Queretaro need to accommodate air traffic from Mexico City Airport, business flights
to Toluca and Queretaro Airport possibly need to be diverted to Cuernavaca Airport. The development in the
field of multiple airports operating as an integral airport system is required in order to maintain future
operation and stretch capacity limits.

It should be noted that when the frequency at a certain airport increases to a certain extent, the above factors
may interfere and interact with each other. In addition, customers are willing to accept longer airport access
time for higher quality airline products. This effect has a stronger impact on non-business trips.

- Focusing on competition among airports in the region, in the area and in the country.

- The factor influencing the passengers' airport choice is the total cost of their trip.

the propensity to fly in that region.

Willingness To Pay (WTP)

The socio-economic
The social impact of an economic change within a region is called socio-economic impact.

The effect of the inhabitants’ patterns of consumption, the distribution of incomes and wealth and the way
people make their choices are some of the socio-economic variables important to define the catchment area
and the target market. This means economic welfare within a region affects the behaviour towards airport
choice. Naturally, this works also the other way around, and in this analysis is a key element of the
socioeconomic impact that the airport will bring to the region.

When not only examining where consumers are but also including the critical factor to know who the
consumers are, more insight into the consumer decision-making process for airport selection can be given.

This conclusion assumes that it might not only be important to understand passengers’ behaviour but also to
know these passengers, their income, their neighbourhood and the economic welfare within the region they
live.

Collectively and variously this research suggests that airport access time, flight frequencies, airfares, aircraft
type, journey purpose and socio-economic considerations are all potentially related to the choices consumers
make with regard to their travel needs