A Comparative Analysis on Implications of High-Speed Rail on Domestic Air Travel Demand

Domestic travel demands vary from day and day and from season to season. However, airlines are under threat from high-speed rail (HSR) in domestic travel demands due to different implications. This study examines the implications of HSR development on domestic air travel demand, airline strategies, and regional economies. This study analyses how HSR competes with and how its development affects air travel by offering shorter travel times, lower fares, and greater convenience on short- to medium-haul routes. We conduct case studies on domestic high-demand routes in China, Japan, and Europe. The results reveal significant shifts in passenger demand, reductions in flight frequency, and airfare adjustments due to HSR implementation. The findings highlight how airlines strategically respond to these changes. We also provide some recommendations to airlines to mitigate challenges from HSR.