Multinomial and nested logit models of airline passengers' no‐show and standby behaviour

This study models airline passengers' no–show and standby behaviour using passenger and outbound and inbound itinerary information. It describes factors that influence no–show and standby behaviour in continental US markets using multinomial and nested logit models. The model accounts for early standby opportunities on other itineraries flown by the carrier of interest, ie it incorporates information about booking levels on the carrier's itineraries departing on the same day. Empirical and validation analyses highlight the importance of distinguishing between outbound and inbound itineraries. It concludes by describing a framework carriers can use to implement the no–show model.