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)
Thank you very much Michal!!
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.