Estimation question

Estimate the number of passengers per year in post-COVID world in August travelling from the US to the EU.

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What this question tests

Estimation with realistic post-pandemic adjustment: decomposing travel demand and applying a recovery discount to pre-pandemic baselines.

How to approach it

  1. Define scope: passengers flying from the US to the EU specifically in the month of August, a known peak summer travel month.
  2. Anchor to a baseline: recall or estimate pre-pandemic annual transatlantic passenger volume, for example on the order of tens of millions of passengers a year between the US and Europe.
  3. Break down seasonality: August likely represents a disproportionate share of annual transatlantic leisure travel, assume roughly 12 to 15 percent of annual volume falls in that single month.
  4. Apply a post-COVID recovery discount: assume travel has recovered to some percentage of pre-pandemic levels, for example an assumed 70 to 90 percent recovery depending on how 'post-COVID' is defined.
  5. Calculate the final estimate by combining the annual baseline, the August seasonality share, and the recovery discount, and sanity check the order of magnitude.
  6. State the assumption clearly that 'post-COVID' timing significantly changes this number, and offer to adjust if the interviewer specifies a particular year.

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