Consequences of service reduction in municipal transit: San Francisco’s muni

Urban transit in the United States is going through a crisis of rising costs, increasing fares, falling patronage, and concomitant service reductions; typical of the pattern is San Francisco’s Municipal Railway, the agency in charge of all the City’s transit. From a basic fare of 15c in 1969, two increases brought the fare to 25c by 1972, and cut sharply into a previously stable patronage. The “Muni”, in an effort to reduce costs and meet its budgeted deficit, attempted to reduce service by ten to fifteen percent. From an analysis of the data which could be obtained, it appears that neither efficiency not equity in the City would have been served by the proposed cutbacks. The analysis draws from a variety of sources and methods in exploring the interactions within the transportation system and within the city budget.     

Optimizing fare and headway to facilitate timed transfer considering demand elasticity

Fare and service frequency significantly affect transit users’ willingness to ride, as well as the supplier's revenue and operating costs. To stimulate demand and increase productivity, it is desirable to reduce the transfer time from one route to another via efficient service coordination, such as timed transfer. Since demand varies both temporally and spatially, it may not be cost-effective to synchronize vehicle arrivals on all connecting routes at a terminal. In this paper, we develop a schedule coordination model to optimize fare and headway considering demand elasticity. The headway of each route is treated as an integer-multiple of a base common headway. A discounted (reduced) fare is applied as an incentive to encourage ridership and, thus, stimulate public transit usage. The objective of the proposed coordination model is used to maximize the total profit subject to the service constraint. A numerical example is given to demonstrate the applicability of the proposed model. The results show that the optimized fare and headway may be carefully applied to yield the maximum profit. The relationship between the decision variables and model parameters is explored in the sensitivity analysis.     

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.     

Ridership drivers of bus rapid transit systems

We have collected information on 46 bus rapid transit (BRT) systems throughout the world to investigate the potential patronage drivers. From a large number of candidate explanatory variables (quantitative and qualitative), 11 sources of systematic variation are identified which have a statistically significant impact on daily passenger-trip numbers. These sources are fare, headway, the length of the BRT network, the number of corridors, average distance between stations; whether there is: an integrated network of routes and corridors, modal integration at BRT stations, pre-board fare collection and fare verification, quality control oversight from an independent agency, at-level boarding and alighting, as well as the location of BRT. The findings of this paper offer important insights into features of BRT systems that are positive contributors to growing patronage and hence should be taken into account in designing and planning BRT systems.     

Determining optimal frequency and vehicle capacity for public transit routes: A generalized newsvendor model

The level of service on public transit routes is very much affected by the frequency and vehicle capacity. The combined values of these variables contribute to the costs associated with route operations as well as the costs associated with passenger comfort, such as waiting and overcrowding. The new approach to the problem that we introduce combines both passenger and operator costs within a generalized newsvendor model. From the passenger perspective, waiting and overcrowding costs are used; from the operator’s perspective, the costs are related to vehicle size, empty seats, and lost sales. Maximal passenger average waiting time as well as maximal vehicle capacity are considered as constraints that are imposed by the regulator to assure a minimal public transit service level or in order to comply with other regulatory considerations. The advantages of the newsvendor model are that (a) costs are treated as shortages (overcrowding) and surpluses (empty seats); (b) the model presents simultaneous optimal results for both frequency and vehicle size; (c) an efficient and fast algorithm is developed; and (d) the model assumes stochastic demand, and is not restricted to a specific distribution. We demonstrate the usefulness of the model through a case study and sensitivity analysis.     

Short-term post-earthquake bus transit planning in Managua

In December 1972 an earthquake hit Managua, Nicaragua, killing 5,000 inhabitants, while wounding 20,000 persons and destroying its core area of 13 square kilometers. The earthquake also seriously disrupted the bus transit system. Bus transit patronage fell as a result of the loss of population of 144,000 persons who moved temporarily out of the city, while costs rose appreciably as both round trip bus distances and the proportion of the trips on unpaved roads doubled with respect to pre-earthquake levels. By September 1973, ten of the thirteen bus companies were on the verge of bankruptcy and were demanding from the regulatory body stiff increases in fares.This paper presents analyses and recommendations for improving the short-term efficiency of bus routes in Managua by applying planning techniques suited to the data availability problems of developing countries.In view of the lack of cost data for the bus routes, a cost analysis was conducted; Jan de Weille's cost factors were adapted to Nicaragua to portray the near bankrupt condition of most routes. These cost factors were verified by means of selected interviews with the private transit entrepreneurs.Next, a simple patronage prediction model was developed which related patronage for a route to the population and employment served by the route. This simple patronage model was then applied to redesign the bus routes of Managua. A policy of bus route redesign coupled with the paving of city streets along the bus routes is shown to have sufficed in avoiding fare increases. Finally, the paper reviews the bus transit regulatory setting and develops some recommendations for its improvement.Adjunct Associate Professor of the Catholic University of America. This study was conducted while the author was stationed in Nicaragua as a consultant to Harvard Development Advisory Service.     

The Downs–Thomson Paradox with responsive transit service

Downs (1962) and Thomson (1977) suggested that highway capacity expansion may produce counterproductive effects on the two-mode (auto and transit) transport system (Downs–Thomson Paradox). This paper investigates the occurrence of this paradox when transit authority can have different economic objectives (profit-maximizing or breakeven) and operating schemes (frequency, fare, or both frequency and fare). For various combinations of economic objectives and operating schemes, the interaction between highway expansion and transit service is explored, as well as its impact on travelers’ mode choices and travel utilities. Further, for each combination, the conditions for occurrence of the Downs–Thomson Paradox are established. We show that the paradox never occurs when transit authority is profit-maximizing, but it is inevitable when the transit authority is running to maximize travelers’ utility while maintaining breakeven. This is because the former transit authority tends to enhance transit service (e.g., raise frequency or reduce fare) when facing an expanded highway; and on the contrary, the latter tends to compromise transit service (e.g., reduce frequency or raise fare). Both analytical and numerical examples are provided to verify the theoretical results.     

A study of rail demand in a two‐tier fares environment

A method based on logit analysis is suggested for predicting the effects on patronage and revenue of relative changes in peak and offpeak fares. The method also permits the ready estimation of consequent changes in service profitability. Data was collected specifically for this study from British Rail's Teesside corridor to achieve model calibration. Results show the extent to which demand in peak and offpeak fare‐periods is complementary when fare restrictions are applied only to the morning peak.     

Transit passenger response: Short and long term elasticities using time series analysis

This paper investigates the effects of price and service changes on transit ridership. The concept of elasticity is introduced and the traditional methods for estimating elasticities are discussed. In this paper an extra dimension is added by investigating short and long term elasticities. Time series analysis, developed by Box and Jenkins is chosen for the analysis. The Box and Jenkins methodology is applied to a monthly time series of average weekday ridership on the Chicago Transit Authority (CTA) rail system. Four categories of explanatory variables are investigated: fare on the CTA rail system, service provided on the CTA rail system, cost of car trips and weather effects. The effects of gas prices and rail service were found to be significant; however the results indicate a twelve month delay before service changes influence ridership. The effect of transit fares was found to be insignificant, indicating that both the short and long term fare elasticities are zero.