I was asked a market sizing question to estimate the number of trains required between Dubai and Abu Dhabi (The government was planning to start daily trains between the two cities). My approach was to find out the number of daily travellers to estimate the capacity required. I segmented the travelling population into business and non-business travellers. The frequency of travel would be higher for business travellers compared to non-business travellers. The idea was to identify the proportion of population who would travel for business purposes vs. other purposes. However, I did not have a valid assumption/rationale to find this proportion. I segmented based on age buckets, but after that, I wasn't sure what percentage of the total population would be business/non-business travellers. How would you approach this question?
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16
Global
Market sizing number of daily travellers between Dubai and Abu Dhabi
1
3.2k
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I think your approach is okay for people based in Dubai or Abu Dhabi, but you are missing out on a significant other portion that is relevant: 1) Visitors and 2) Travellers who are transiting in one of the two cities
Please reach out via DM if you want to discuss this case and/or other market sizing cases in more detail. It is important to get the general thinking right when you are dealing with market sizing cases and I think you have improvement potential here!
