expert
Expert with best answer

Michal

100% Recommendation Rate

16 Meetings

51 Q&A Upvotes

USD 249 / Coaching

Calculation Airport Passengers in 1 year

Franziska asked on May 17, 2017 - 1 answer

Hi everyone,
I was recently asked to calculate the passengers of an airport in 1 year. I used the method of what I assume would be the bottom-up approach: # of runways, utilization of runways, opening hours airport, # of planes on runway, capacity planes and utilization of planes, etc. I got pretty close to the exact number, so I assume this was a good approach :)
However, could someone please explain to me how the top-down approach would look like? Would I start with the percentage of travellers flying for leisure/work etc.? And how would I proceed then?
Thanks a lot in advance!

(edited)

1 answer

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Michal
Expert
replied on May 18, 2017
Ex-Bain consultant, got offers from McK, BCG, Bain. Now a startup strategist
Book a coaching with Michal

100% Recommendation Rate

16 Meetings

51 Q&A Upvotes

USD 249 / Coaching

Hi Franziska,

I'd try the following:

1. The population served by a particular airport (if there are several airports in an area, also assume an airport's share)

2. Based on personal experience, estimate the number of people flying for business and leisure (tough)

3. Estimate how many times a year they fly (easier)

As always with these cases, there are many ways to do it and this is just one. Also this top-down approach will be less accurate than what you came up with.

Hope it was helpful!

Best,

Michal

Thank you very much Michal!! — Franziska on May 18, 2017

Great insight, Michal! I'd still advise against using the demand side for this estimation, though. Mainly because of the type of assumptions one will have to make. For this case, and for any other estimation case where the supply side is the constraining factor, you have to go with a supply side estimation. — Quirin on May 19, 2017

Related BootCamp article(s)

Market Sizing

Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.

1 Q&A

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

1 Q&A

Getting Up to Speed

In order to repeatedly demonstrate prerequisite skills under the pressure of a real case interview, you need to learn the basics and practice cases.

Related case(s)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Bain Case: Old Winery

Solved 39.1k times
4.4 5 1020
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

Roland Berger Case: Onlinestar

Solved 24.4k times
4.3 5 529
| Rating: (4.3 / 5.0)

Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b ... Open whole case

TKMC Case: Elevators

Solved 12.1k times
4.2 5 1133
| Rating: (4.2 / 5.0)

Your customer is the market leader in the North American elevator service business. This is divided into the areas of elevator construction, elevator modernization and service. The customer has a particularly strong branch network in medium-sized cities and would now like to expand its business in ... Open whole case

Our client Pharma Finance just finalized its first investment round and received $ 40m to invest in the build-up of a pharmaceutical manufacturing company. The CEO is mainly interested in high margins and profitable markets, with a sustainable and green production. This is why he wants you to find o ... Open whole case