Secrets of success: assessing the large increases in transit ridership achieved by Houston and San Diego transit providers

This paper summarizes and updates the findings from an earlier study by the same authors of transit systems in Houston (all bus) and San Diego (bus and light rail). Both systems achieved unusually large increases in transit ridership during a period in which most transit systems in other metropolitan areas were experiencing large losses. Based on ridership models estimated using cross section and time series data, the paper quantifies the relative contributions of policy variables and factors beyond the control of transit operators on ridership growth. It is found that large ridership increases in both areas are caused principally by large service increases and fare reductions, as well as metropolitan employment and population growth. In addition, the paper provides careful estimates of total and operating costs per passenger boarding and per passenger mile for Houston's bus operator and San Diego's bus and light rail operators. These estimates suggest that the bus systems are more cost-effective than the light rail system on the basis of total costs. Finally, the paper carries out a series of policy simulations to analyze the effects of transit funding levels and metropolitan development patterns on transit ridership and farebox recovery ratio.     

The impact of fare and gasoline price changes on monthly transit ridership: Empirical evidence from seven U.S. transit authorities

This paper presents eight empirical models of monthly ridership for seven U.S. Transit Authorities. Within the framework of these models, the impacts upon monthly ridership from changes in the real fare and gasoline prices are examined. Important findings are: (1) the elasticities of monthly transit ridership with respect to the real fare are negative and inelastic, ranging from 0.042 to 0.62; and (2) the elasticities of monthly transit ridership with respect to the real gasoline price are positive and inelastic, ranging from 0.08 to 0.80. Such results have important policy implications for decisions based on the relationships of price, revenue, and ridership; and for assessing the impacts of changing gasoline prices upon urban modal choice.     

A time-series analysis of public transit ridership in Portland,Oregon, 1971–1982

This paper examines the factors affecting changes in transit ridership in Portland, Oregon, during the period 1971 through 1982. A time-series methodology is used to investigate the effects of service level, travel costs, and market size at the system, sector, and route levels. Transfer function and multiple time-series models are compared. Intervention analysis is used to determine the impact of 81 service-level changes and 5 fare changes. A comparison is made of the elasticities estimated for these changes with elasticities developed from other studies.     

Some evidence of transit demand elasticities

This paper draws together empirical evidence from a variety of sources about the magnitudes of transit price elasticities and cross-elasticities. A number of different practical measures of demand elasticity are first defined and some expectations about magnitude are discussed. Evidence is then collated from the analysis of transit operating statistics, from experience in demonstration projects and from attempts to develop cross-sectional models of demand and modal choice.In general, all of the limited evidence available suggests that transit demand is inelastic with respect to money price. Typically, ridership is significantly more sensitive to changes in the level of service (particularly door-to-door journey time) than to changes in fare, although service elasticities also are usually numerically less than unity.In broad terms, short-run direct fare elasticities are characteristically observed to lie within the range of -0.1 to –0.7. A more precise value in a particular instance will depend on a variety of factors in ways which largely support a priori notions. Thus in very large cities, central city areas, at peak hours, and in other circumstances where the prices of alternative modes are high, transit fare elasticities are usually numerically at the lower end of the range.Estimates of cross-elasticities (representing the volumes of transit traffic diverted to other modes by transit price increases) are much harder to come by, and in fact only a few very uncertain estimates are presented here.This paper is a condensation of an Urban Institute Working Paper of the same title (WP 708-52, November 1971). Opinions expressed are those of the author and do not necessarily represent the views of The Urban Institute or its sponsors.     

A time series analysis of monthly ridership for an urban rail rapid transit line

This paper presents two time series regression models, one in linear form and the other in logarithmic form, to estimate the monthly ridership of a single urban rail rapid transit line. The model was calibrated for a time period of about six and a half years (from 1978–1984) based on ridership data provided by a transit authority, gasoline prices provided by a state energy department, and other data.The major findings from these models are: (1) seasonal variations of ridership are –6.26%, or –6.20% for the summer period, and 4.77%, or 4.62% for the October period; (2) ridership loss due to a station closure is 2.46% or 2.41%; and (3) elasticities of monthly ridership are –0.233 or –0.245 with respect to real fare, 0.113 or 0.112 with respect to real gasoline price, and 0.167 or 0.185 with respect to real bridge tolls for the competing automobile trips. Such route specific application results of this inexpensive approach provide significant implications for policymaking of individual programs in pricing, train operation, budgeting, system changes, etc., as they are in the case reported herein and would be in many other cities.     

Normative framework for transit fare policy-making

This paper presents a normative model for transit fare policy-making. Key elements of the model are: establishing service policy and ridership objectives, developing an overall financial philosophy, making fare level decisions, making structural pricing decisions, and designing implementation strategies. In general, the overall objectives of a transit agency regarding service quality and ridership levels should be the main impetus behind any fare program. Identifying where transit lies on the continuum of being a public versus a private service should frame the overall financial philosophy of a transit agency. From this the specification of farebox recovery targets should follow. Deciding upon structural aspects of a fare program perhaps represents one of the most important and most frequently overlooked steps of the process. Specific cost-based and value-based fare strategies should be considered. Implementation involves making the adopted fare strategy work. Key implementation issues are: fare payment and collection techniques, necessary service changes, marketing and promotional programs, and consensus-building. The model presented calls for feedback among these steps to allow an iterative, yet comprehensive, approach to fare policy-setting.     

The effect of slow zones on ridership: An analysis of the Chicago Transit Authority “El” Blue Line

Transit agencies frequently upgrade rail tracks to bring the system to a state of good repair (SGR) and to improve the speed and reliability of urban rail transit service. For safety during construction, agencies establish slow zones in which trains must reduce speed. Slow zones create delays and schedule disruptions that result in customer dissatisfaction and discontinued use of transit, either temporarily or permanently. While transit agencies are understandably concerned about the possible negative effects of slow zones, empirical research has not specifically examined the relationship between slow zones and ridership. This paper partially fills that gap. Using data collected from the Chicago Transit Authority (CTA) Customer Experience Survey, CTA Slow Zone Maps, and, the Automatic Fare Collection System (AFC), it examines whether recurring service delays due to slow zones affect transit rider behavior and if the transit loyalty programs, such as smart card systems, increase or decrease rider defections. Findings suggest that slow zones increase headway deviation which reduces ridership. Smart card customers are more sensitive to slow zones as they are more likely to stop using transit as a result of delay. The findings of this paper have two major policy implications for transit agencies: (1) loyalty card users, often the most reliable source of revenue, are most at risk for defection during construction and (2) it is critical to minimize construction disruptions and delays in the long run by maintaining state of good repair. The results of this paper can likely be used as the basis for supporting immediate funding requests to bring the system to an acceptable state of good repair as well as stimulating ideas about funding reform for transit.     

Impact evaluation of a mass transit fare change on demand and revenue utilizing smart card data

Transit fares are an effective tool for demand management. Transit agencies can raise revenue or relieve overcrowding via fare increases, but they are always confronted with the possibility of heavy ridership losses. Therefore, the outcome of fare changes should be evaluated before implementation. In this work, a methodology was formulated based on elasticity and exhaustive transit card data, and a network approach was proposed to assess the influence of distance-based fare increases on ridership and revenue. The approach was applied to a fare change plan for Beijing Metro. The price elasticities of demand for Beijing Metro at various fare levels and trip distances were tabulated from a stated preference survey. Trip data recorded by an automatic fare collection system was used alongside the topology of the Beijing Metro system to calculate the shortest path lengths between all station pairs, the origin–destination matrix, and trip lengths. Finally, three fare increase alternatives (high, medium, and low) were evaluated in terms of their impact on ridership and revenue. The results demonstrated that smart card data have great potential with regard to fare change evaluation. According to smart card data for a large transit network, the statistical frequency of trip lengths is more highly concentrated than that of the shortest path length. Moreover, the majority of the total trips have a length of around 15 km, and these are the most sensitive to fare increases. Specific attention should be paid to this characteristic when developing fare change plans to manage demand or raise revenue.     

A model for forecasting public transit

This study develops a model that explains public transit ridership in Orange Country, California over quarterly periods during the 1974–1988 period. The model uses a Cobb-Douglas functional form and a Cochrane-Orcutt iterative procedure to measure the association between public transit ridership and the potential number of users, relative level of public transit service, relative price of public transit, seasonality, and external shocks. Relative measures of the explanatory variables are used to reduce the potential for multicollinearity and give greater confidence in the reliability of the estimated elasticities. The model is then used to prepare conditional quarterly forecasts for ridership in 1988 and unconditional quarterly forecasts during the 1989–1993 period.     

A simultaneous route-level transit patronage model: demand,supply, and inter-route relationship

In this paper we present a route-level patronage model that incorporates transit demand, supply and inter-route effects in a simultaneous system. The model is estimated at the route-segment level by time of day and direction. The results show strong simultaneity among transit demand, supply and competing routes. Transit ridership is affected by the level of service, which in turn is determined by current demand and ridership in the previous year. The model demonstrates that a service improvement has a twofold impact on ridership; it increases ridership on the route with service changes, but it also reduces the ridership on competing routes so that the net ridership change is small. The model is thus useful for both system-level analysis and route-level service planning.     

上海轨道交通清分系统架构中应用云计算技术的探讨

通过对上海轨道交通清分系统构架的现状分析,明确清分、线路中央计算机、车站计算机等系统之间业务功能的调整方向。根据云计算技术的特点,阐述在城市轨道交通自动售检票系统中如何建立私有云计算系统、不同服务层次服务的对象以及实施的技术路线,并提出城市轨道交通自动售检票系统云计算构架的设想与模型。     

Intercity rail services: A nested logit stated choice analysis of pricing options

There is a renewed interest in intercity and long-distance rail services in many countries, with both new high-speed rail services and improvements to conventional rail under review. The current study reports on an investigation using a stated choice experiment, of the demand for sleeper services between Sydney, Northern New South Wales (NSW) and Brisbane in Australia, a 12 to 14 hour trip, just after a decision by the NSW government to temporarily suspend sleeper services and introduce seating service only, pending an inquiry into the demand for such loss-making services under alternative price and service levels. A matrix of direct fare elasticities within the rail mode and between rail and competing modes are obtained for concession and non-concession travellers from a nested logit model. The empirical evidence extends our knowledge of the sensitivity of the long distance passenger market to a range of rails fares, distinguishing between classes of fares and levels of service.     

Optimization of Fare Structure and Service Frequency for Maximum Profitability of Transit Systems

Abstract

Providing efficient public transportation has been recognized as a potential way of alleviating congestion, improving mobility, mitigating air pollution, and reducing energy consumption. Many people use public transportation systems for their daily commute, while others use different transportation modes (e.g. cars, taxis, carpools, etc.). Inexpensive fares with good transit service encourages ridership, and the resulting revenue may be used to provide better service. Optimization of transit service frequency and its associated fare structure is desirable in order to increase revenue at reasonable transit operating expenditure. The objective of the study reported here is to maximize profit subject to service capacity constraint, while elastic demand is considered. The solution methodology is developed and applied to solve the profit maximization problem in a case study based on Newark, NJ, USA. Numerical results, including optimal solutions and sensitivity analyses, are presented. It is found that an optimal temporal headway and differential fare structure that maximizes total profit for the studied subway system can be efficiently solved.     

The impact of real-time information on bus ridership in New York City

In the past few years, numerous mobile applications have made it possible for public transit passengers to find routes and/or learn about the expected arrival time of their transit vehicles. Though these services are widely used, their impact on overall transit ridership remains unclear. The objective of this research is to assess the effect of real-time information provided via web-enabled and mobile devices on public transit ridership. An empirical evaluation is conducted for New York City, which is the setting of a natural experiment in which a real-time bus tracking system was gradually launched on a borough-by-borough basis beginning in 2011. Panel regression techniques are used to evaluate bus ridership over a three year period, while controlling for changes in transit service, fares, local socioeconomic conditions, weather, and other factors. A fixed effects model of average weekday unlinked bus trips per month reveals an increase of approximately 118 trips per route per weekday (median increase of 1.7% of weekday route-level ridership) attributable to providing real-time information. Further refinement of the fixed effects model suggests that this ridership increase may only be occurring on larger routes; specifically, the largest quartile of routes defined by revenue miles of service realized approximately 340 additional trips per route per weekday (median increase of 2.3% per route). Although the increase in weekday route-level ridership may appear modest, on aggregate these increases exert a substantial positive effect on farebox revenue. The implications of this research are critical to decision-makers at the country’s transit operators who face pressure to increase ridership under limited budgets, particularly as they seek to prioritize investments in infrastructure, service offerings, and new technologies.     

Estimating multimodal transit ridership with a varying fare structure

This paper studies public transport demand by estimating a system of equations for multimodal transit systems where different modes may act competitively or cooperatively. Using data from Athens, Greece, we explicitly correct for higher-order serial correlation in the error terms and investigate two, largely overlooked, questions in the transit literature; first, whether a varying fare structure in a multimodal transit system affects demand and, second, what the determinants of ticket versus travelcard sales may be. Model estimation results suggest that the effect of fare type on ridership levels in a multimodal system varies by mode and by relative ticket to travelcard prices. Further, regardless of competition or cooperation between modes, fare increases will have limited effects on ridership, but the magnitude of these effects does depend on the relative ticket to travelcard prices. Finally, incorrectly assuming serial independence for the error terms during model estimation could yield upward or downward biased parameters and hence result in incorrect inferences and policy recommendations.     

Impacts of built environment and emerging green technologies on daily transportation greenhouse gas emissions in Quebec cities: a disaggregate modeling approach

This paper aims to investigate the impact of the built environment (BE) and emerging transit and car technologies on household transport-related greenhouse gas emissions (GHGs) across three urban regions. Trip-level GHG emissions are first estimated by combining different data sources such as origin–destination (OD) surveys, vehicle fleet fuel consumption rates, and transit ridership data. BE indicators for the different urban regions are generated for each household and the impact of neighborhood typologies is derived based on these indicators. A traditional ordinary least square (OLS) regression approach is then used to investigate the direct association between the BE indicators, socio-demographics, and household GHGs. The effect of neighborhood typologies on GHGs is explored using both OLS and a simultaneous equation modeling approach. Once the best models are determined for each urban region, the potential impact of BE is determined through elasticities and compared with the impact of technological improvements. For this, various fuel efficiency scenarios are formulated and the reductions on household GHGs are determined. Once the potential impact of green transit and car technologies is determined, the results are compared to those related to BE initiatives. Among other results, it is found that BE attributes have a statistically significant effect on GHGs. However, the elasticities are very small, as reported in several previous studies. For instance, a 10 % increase in population density will result in 3.5, 1.5 and 1.4 % reduction in Montreal, Quebec and Sherbrooke, respectively. It is also important to highlight the significant variation of household GHGs among neighborhoods in the same city, variation which is much greater than among cities. In the short term, improvements on the private passenger vehicle fleet are expected to be much more significant than BE and green transit technologies. However, the combined effect of BE strategies and private-motor vehicle technological improvement would result in more significant GHGs reductions in the long term.     

Forecasting demand for high speed rail

It is sometimes argued that standard state-of-practice logit-based models cannot forecast the demand for substantially reduced travel times, for instance due to High Speed Rail (HSR). The present paper investigates this issue by reviewing the literature on travel time elasticities for long distance rail travel and comparing these with elasticities observed when new HSR lines have opened. This paper also validates the Swedish long distance model, Sampers, and its forecast demand for a proposed new HSR, using aggregate data revealing how the air–rail modal split varies with the difference in generalized travel time between rail and air. The Sampers long distance model is also compared to a newly developed model applying Box–Cox transformations. The paper contributes to the empirical literature on long distance travel, long distance elasticities and HSR passenger demand forecasts. Results indicate that the Sampers model is indeed able to predict the demand for HSR reasonably well. The new non-linear model has even better model fit and also slightly higher elasticities.     

Transit pricing research

Several decades of research on transit pricing have provided clear insights into how riders respond to price changes in both the transit and automobile sectors. For the most part, riders are insensitive to changes in either fare levels, structures, or forms of payments, though this varies considerably among user groups and operating environments. Since riders are approximately twice as sensitive to changes in travel time as they are to changes in fares, a compelling argument can be made for operating more premium quality transit services at higher prices. Such programs could be supplemented by vouchers and concessionary programs to reduce the burden of higher fares on low-income users. Also, cross-elasticity research suggests that higher automobile prices would have a significantly greater affect on ridership than lower fares. Most research on transit fare structures shows that the common practice of flat fares is highly inequitable, penalizing short-distance and off-peak users. Free fare programs have proven quite costly for each new transit user attracted and have rarely lured motorists to transit. Free fares limited to downtowns have been more successful than systemwide free fare programs. While prepayment schemes have met with success in the U.S. and Europe, honor fares have suffered from excessive revenue losses in at least one case in the U.S. Some of the more noteworthy fare policy successes in North America have been Bridgeport's combined pass-fare program, Allentown's deep discounts, Ottawa's major fare reduction and differentiation, and Columbus's substantial midday discount. As paratransit and other new transit alternatives to conventional bus continue to emerge, new, more differentiated fare practices can be expected in the future.     

Nature and/or nurture? Analyzing the determinants of transit ridership across US urbanized areas

Public subsidy of transit services has increased dramatically in recent years, with little effect on overall ridership. Quite obviously, a clear understanding of the factors influencing transit ridership is central to decisions on investments in and the pricing and deployment of transit services. Yet the literature about the causes of transit use is quite spotty; most previous aggregate analyses of transit ridership have examined just one or a few systems, have not included many of the external, control variables thought to influence transit use, and have not addressed the simultaneous relationship between transit service supply and consumption. This study addresses each of these shortcomings by (1) conducting a cross-sectional analysis of transit use in 265 US urbanized areas, (2) testing dozens of variables measuring regional geography, metropolitan economy, population characteristics, auto/highway system characteristics, and transit system characteristics, and (3) constructing two-stage simultaneous equation regression models to account for simultaneity between transit service supply and consumption. We find that most of the variation in transit ridership among urbanized areas – in both absolute and relative terms – can be explained by factors outside of the control of public transit systems: (1) regional geography (specifically, area of urbanization, population, population density, and regional location in the US), (2) metropolitan economy (specifically, personal/household income), (3) population characteristics (specifically, the percent college students, recent immigrants, and Democratic voters in the population), and (4) auto/highway system characteristics (specifically, the percent carless households and non-transit/non-SOV trips, including commuting via carpools, walking, biking, etc.). While these external factors clearly go a long way toward determining the overall level of transit use in an urbanized area, we find that transit policies do make a significant difference. The observed range in both fares and service frequency in our sample could account for at least a doubling (or halving) of transit use in a given urbanized area. Controlling for the fact that public transit use is strongly correlated with urbanized area size, about 26% of the observed variance in per capita transit patronage across US urbanized areas is explained in the models presented here by service frequency and fare levels. The observed influence of these two factors is consistent with both the literature and intuition: frequent service draws passengers, and high fares drive them away.     

Examining the relationship between built environment and metro ridership at station-to-station level

Very few studies have examined the impact of built environment on urban rail transit ridership at the station-to-station (origin-destination) level. Moreover, most direct ridership models (DRMs) tend to involve simple a prior assumed linear or log-linear relationship in which the estimated parameters are assumed to hold across the entire data space of the explanatory variables. These models cannot detect any changes in the linear (or non-linear) effects across different values of the features of built environment on urban rail transit ridership, which possibly induces biased results and hides some non-negligible and detailed information. Based on these research gaps, this study develops a time-of-day origin-destination DRM that uses smart card data pertaining to the Nanjing metro system, China. It applies a gradient boosting regression trees model to provide a more refined data mining approach to investigate the non-linear associations between features of the built environment and station-to-station ridership. Data related to the built environment, station type, demographics, and travel impedance including a less used variable – detour, were collected and used in the analysis. The empirical results show that most independent variables are associated with station-to-station ridership in a discontinuous non-linear way, regardless of the time period. The built environment on the origin side has a larger effect on station-to-station ridership than the built environment on the destination side for the morning peak hours, while the opposite holds for the afternoon peak hours and night. The results also indicate that transfer times is more important variables than detour and route distance.