Accounting for travel time variability in the optimal pricing of cars and buses

A number of studies have shown that in addition to travel time and cost as the common influences on mode, route and departure time choices, travel time variability plays an increasingly important role, especially in the presence of traffic congestion on roads and crowding on public transport. The dominant focus of modelling and implementation of optimal pricing that incorporates trip time variability has been in the context of road pricing for cars. The main objective of this paper is to introduce a non-trivial extension to the existing literature on optimal pricing in a multimodal setting, building in the role of travel time variability as a source of disutility for car and bus users. We estimate the effect of variability in travel time and bus headway on optimal prices (i.e., tolls for cars and fares for buses) and optimal bus capacity (i.e., frequencies and size) accounting for crowding on buses, under a social welfare maximisation framework. Travel time variability is included by adopting the well-known mean–variance model, using an empirical relationship between the mean and standard deviation of travel times. We illustrate our model with an application to a highly congested corridor with cars, buses and walking as travel alternatives in Sydney, Australia. There are three main findings that have immediate policy implications: (i) including travel time variability results in higher optimal car tolls and substantial increases in toll revenue, while optimal bus fares remain almost unchanged; (ii) when bus headways are variable, the inclusion of travel time variability as a source of disutility for users yields higher optimal bus frequencies; and (iii) including both travel time variability and crowding discomfort leads to higher optimal bus sizes.     

Reducing car dependence in the heart of Europe: lessons from Germany,Austria, and Switzerland

Munich, Berlin, Hamburg, Vienna, and Zurich – the largest cities in Germany, Austria, and Switzerland – have significantly reduced the car share of trips over the past 25 years in spite of high motorisation rates. The key to their success has been a coordinated package of mutually reinforcing transport and land-use policies that have made car use slower, less convenient, and more costly, while increasing the safety, convenience, and feasibility of walking, cycling, and public transport. The mix of policies implemented in each city has been somewhat different. The German cities have done far more to promote cycling, while Zurich and Vienna offer more public transport service per capita at lower fares. All five of the cities have implemented roughly the same policies to promote walking, foster compact mixed-use development, and discourage car use. Of the car-restrictive policies, parking management has been by far the most important. The five case study cities demonstrate that it is possible to reduce car dependence even in affluent societies with high levels of car ownership and high expectations for quality of travel.     

The demand for public transport. part II. supply and demand factors of public transport

Abstract

This two‐part article, concerned with the way public transport ridership is affected by the various relevant factors, is based on the Executive Summary of The Demand for Public Transport (Webster and Bly 1980), the report of the TRRL‐sponsored International Collaborative Study on Factors Affecting Public Transport Patronage. Part I of the article, which was concerned with the social and economic conditions in which public transport operates, showed the importance of the background factors such as income, car ownership and land use on public transport usage: it also indicated how the longer‐term impacts of the more direct demand factors (fares, service levels) often show themselves in changes in car ownership levels, activity patterns (i.e. where people live, work, shop, socialize, etc) and land‐use development.

Part II reviews the current state of knowledge on the effects of changes in fare levels and quality of service and of the introduction of various traffic and transport measures (traffic restraint, bus priority, etc): it outlines current methodology on costing public transport services and draws the supply and demand sides together in a consideration of particular strategies which are at the disposal of the operator, the planner and the policy maker.     

Pooling for the journey to work: The outlook in Great Britain

Pooling, or ride-sharing, is a term coined in the United States (U.S.) to describe various forms of collective travel organised for, and often by, specific groups of commuters with similar travel requirements. Its different forms include bus pooling (financially self-supporting works bus or commuter coach services), minibus pooling (van pooling in U.S. terminology) and car pooling. It has been claimed that these forms of collective travel offer a more personalised service than conventional stage carriage buses, and therefore have a greater chance of attracting solo car drivers and increasing vehicle occupancies. This, in turn, can lead to lower fuel consumption and reduced traffic congestion at peak times. Following the advent of oil shortages in the winter of 1973/74, considerable efforts were made in the U.S. to promote pooling initiatives. This gave rise to the publication of a substantial volume of literature that sometimes indicated significant resource-saving achievements. This paper considers the potential for bus, minibus and car pooling in Great Britain, drawing both on relevant theoretical and economic studies, and on practical operational experience. It concludes that under reasonable assumptions about the transport situation in the next decade or so, pooling could become increasingly useful for solving the travel problems of individual local groups, but that it is unlikely to become a major mode in terms of the numbers of trips carried. The effects of recent legislative changes are discussed, and the justification for further change assessed. Relevant comparisons are made with the U.S.Crown Copyright 1983. Extracts from the text may be reproduced, except for commercial purposes, provided the source is acknowledged.     

Analysing Demand for Suburban Trips: A Mixed RP/SP Model with Latent Variables and Interaction Effects

We analyse mode choice behaviour for suburban trips in the Grand Canary island using mixed revealed preference (RP)/stated preference (SP) information. The SP choice experiment allowed for interactions among the main policy variables: travel cost, travel time and frequency, and also to test the influence of latent variables such as comfort. It also led to discuss additional requirements on the size and sign of the estimated model parameters, to assess model quality when interactions are present. The RP survey produced data on actual trip behaviour and was used to adapt the SP choice experiment. During the specification searches we detected the presence of income effect and were able to derive willingness-to-pay measures, such as the subjective value of time, which varied among individuals. We also studied the systematic heterogeneity in individual tastes through the specification of models allowing for interactions between level-of-service and socio-economic variables. We concluded examining the sensitivity of travellers’ behaviour to various policy scenarios. In particular, it seems that contrary to political opinion, in a crowded island policies penalising the use of the private car seem to have a far greater impact in terms of bus patronage than policies implying direct improvements to the public transport service.     

Multimodal travel groups and attitudes: A latent class cluster analysis of Dutch travelers

For developing sustainable travel policies, it may be helpful to identify multimodal travelers, that is, travelers who make use of more than one mode of transport within a given period of time. Of special interest is identifying car drivers who also use public transport and/or bicycle, as this group is more likely to respond to policies that stimulate the use of those modes. It is suggested in the literature that this group may have less biased perceptions and different attitudes towards those modes. This supposition is examined in this paper by conducting a latent class cluster analysis, which identifies (multi)modal travel groups based on the self-reported frequency of mode use. Simultaneously, a membership function is estimated to predict the probability of belonging to each of the five identified (multi)modal travel groups, as a function of attitudinal variables in addition to structural variables. The results indicate that the (near) solo car drivers indeed have more negative attitudes towards public transport and bicycle, while frequent car drivers who also use public transport have less negative public transport attitudes. Although the results suggest that in four of the five identified travel groups, attitudes are congruent with travel mode use, this is not the case for the group who uses public transport most often. This group has relatively favorable car attitudes, and given that many young, low-income travelers belong to this group, it may be expected that at least part of this group will start using car more often once they can afford it. Based on the results, challenges for sustainable policies are formulated for each of the identified (multi)modal travel groups.     

The bicycle as a feedering mode: experiences from three European countries

Bike-and-ride, or the combined use of bicycle and public transport for one trip, is a multimodal alternative for the car. This paper discusses the use of bike-and-ride in three countries with widely differing bicycle cultures and infrastructures: the Netherlands, Germany and the UK. The share of the bicycle in access trips is comparable to general levels of bicycle ridership in each country, but only for train services and other fast modes of public transport. Strong similarities are found in the characteristics of bike-and-ride trips and users, in terms of travel distances, travel motives, and the impact of car availability. The majority of bike-and-ride users travels between 2 and 5 km to a public transport stop, with longer access distances reported for faster modes of public transport. Work and education are the main travel motives, with the first dominating the faster modes and the second the slower modes of public transport. Car availability hardly influences the choice for a combined use of bicycle and train, but strongly affects the levels of bike-and-ride for slower modes of transport.     

Modelling the impact of rail fare increases

Rail fares in South-East England have been increasing in real terms for several years, and are expected to continue to do so. In this paper, the impact of such increases is examined in terms of the choices of mode of travel, home and job location, and residential migration. Forecasts are made using a model in which the population is partitioned into four sets according to whether they have changed home and/ or job over the forecast period. The model allocates population to homes and workers to jobs, and commuters to the three modes of travel considered. The impact of an increase of 25% in real fares over a five-year period is examined and a number of conclusions are drawn. The model shows that rail patronage will decline even if transport costs remain constant in real terms, because of decentralisation of jobs and rising car ownership. The overall long-term rail fare elasticity is found to be –0.7, but this is the mean of a wide range of values for different parts of the study area. People ceasing to commute by rail would divide almost equally between car and bus, the latter being used particularly to Central London. Those people who commute to London who are seeking new homes would tend to choose to live nearer London than they would have otherwise. The paper concludes with a discussion of the findings in terms of the assumptions implied in the model.     

Understanding suburban travel demand: Flexible modelling with revealed and stated choice data

We analyse the choice of mode in suburban corridors using nested logit specifications with revealed and stated preference data. The latter were obtained from a choice experiment between car and bus, which allowed for interactions among the main policy variables: travel cost, travel time and frequency. The experiment also included parking cost and comfort attributes. The attribute levels in the experiment were adapted to travellers’ experience using their revealed preference information. Different model specifications were tested accounting for the presence of income effect, systematic taste variation, and incorporating the effect of latent variables. We also derived willingness-to-pay measures, such as the subjective value of time, that vary among individuals as well as elasticity values. Finally, we analysed the demand response to various policy scenarios that favour public transport use by considering improvements in level-of-service, fare reductions and/or increases in parking costs. In general, demand was shown to be more sensitive to policies that penalise the private car than those improving public transport.     

Car ownership and attitudes towards transport modes for shopping purposes in Singapore

The heightening of issues, such as sustainable development and environmental pollution have resulted in many governments pursuing transport policies which aim to promote the use of public transport modes, including walking, as well as discourage the use of the car for various activities, such as shopping, work, recreation, etc. However, little has been done on understanding shoppers' perceptions of transport modes for shopping purposes. Particularly, not much research has been done on examining the attitudes of car owners and non-car owners towards transport modes for shopping purposes. Using Singapore as a study area, this study has attempted to analyse car owners and non-car owners' perceptions of the different types of transport modes (i.e., car, taxi, bus, mass rapid transit and walk) in their shopping trips. The research found that each transport mode has its own unique set of attributes. In addition, car owners and non-car owners portray different attitudes towards the public transport modes and the car. This calls for different strategies for these two groups of shoppers in encouraging them to use the public transport modes and restrain the use of the car.     

Transport policy for an ageing population

Mobility declines with increasing age, reflecting the onset of physical or mental infirmity, affordability of travel for those on retirement incomes, and the mal-design of the transport infrastructure and operational arrangements. With the prospect of a rapidly ageing population, it is important to address measures to promote mobility if the quality of life of older people is to be sustained. In the UK, pensioners on low incomes, who could be hindered in their travel by the cost of fares on public transport, benefit from the general availability of half price (or better) concessionary fares for local travel. A variety of measures are in place to counter the effects of age-associated disabilities that hinder mobility, including low floor buses, subsidised taxis and community transport schemes. The Disability Discrimination Act is ensuring that public services vehicles are accessible to older people with disabilities. The motor car is of increasing importance in later life, particularly for those with disabilities, and a variety of design and technological approaches are being brought to bear to maintain the mobility of older people. These various efforts undoubtedly enhance the mobility of older people. However, beyond that broad conclusion it is hard to make evidencebased judgements. There is therefore a pressing need to develop methods to evaluate developments in policy and practice.     

Accommodating preference heterogeneity in commuting mode choice: an empirical investigation in Shaoxing,China

A latent class model is developed to accommodate preference heterogeneity across commuters with respect to their mode choice between electric bike, private car, and public bus within the context of China. A three-segment solution – ‘electric bike individuals’, ‘private car addicts’, and ‘public bus enthusiasts’ – is identified, each characterized by heterogeneous preferences regarding specific mode attributes and unique socio-demographic profile. The choice model confirms the determinative effects of perceived alternative attributes on commuting mode choice, while the traditionally used objective attributes – travel time and cost – are found to have relatively small influences. The membership model provides solid explanations for these segment-specific preferences. This study provides a better understanding of the nature of mode choice behavior, which can be useful for strategies tailored to a specific segment in order to promote the use of sustainable transport modes.     

Estimating the demand for urban bus travel

The disadvantages of conventional transportation study models, in particular their large data requirements and their weaknesses in dealing with changes in trip generation rates have led to a need for a simple model that can quickly and at low cost examine alternative public transport strategies.This paper investigates simple economic models of bus demand, examines alternative variables that can be used and discusses some alternative model forms. It demonstrates the results of a model using data from twelve urban bus operators in Britain and compares the results with those from other types of study. The model utilises fare and service quality elasticities to explain the decline in passengers on urban bus services, and derives an average elasticity with respect to fare changes of –0.31 and with respect to service quality changes of +0.62. It is estimated that fare rises accounted for 13% of the 43% decline in passengers over the last fifteen years, vehicle mileage reductions for 14.3% and that only 15.7% was due to such factors as rising car ownership which are often given as the cause of declining bus patronage.The results, by showing that passengers are far more sensitive to changes in service than they are to fare rises, are a useful guide to the broader public transport policy issues, and the paper concludes that the model does provide a useful method of forecasting public transport demand at a strategic level. Further work is needed, however, to establish more accurate forecasts for different types of passenger and studies are now being undertaken to establish these and to construct an operational forecasting model that can be applied with only limited data requirements     

Bus policy — Conclusions from a case study

The main policy conclusions from a recent bus study in the new town of Telford in the U.K. are summarised and discussed. The choice of bus routes and their combination into networks is examined. Alternative fares systems are compared and the implications for the fare levels necessary to cover costs are discussed. It is argued that bus services can generally be financed from the fare-box but that, unless services are cut as passenger demand falls, unduly high fares will result and these will unnecessarily drive more passengers away from the buses. Several particular aspects of service marketing are then examined and the paper concludes by discussing the actual organisation of the bus services.     

Urban transport in Germany: providing feasible alternatives to the car

With the second highest level of car ownership in the world, and the third highest population density in Europe, Germany has adopted a range of policies to balance the many private benefits of car use with its serious social and environmental problems. In order to ‘tame’ the car, most German cities have implemented a twofold strategy of expanding and improving pedestrian, bicycling and public transport alternatives simultaneously with restricting car use and making it more expensive. That has increased political acceptability since the car‐restrictive measures are not perceived as mere punishment of car drivers. The results of this coordinated urban transport strategy have been impressive. Germany, as a whole, has managed to increase public transport use and to stabilize the car share of modal split. Some cities, of course, have been more successful than others, and this paper examines three of the most successful cities: Münster, Freiburg and Munich. In each of the cities, the percentage of travel by bicycling, walking and public transport has been raised over the past 20 years, while the car's share of modal split has fallen. This article documents the range of policies used to restrict car use, both in Germany as a whole, and in the three case‐study cities in particular. The key to success is found to be mutually reinforcing transport and land‐use policies. It is the combination of a whole set of coordinated policies that explains the dramatic success in changing travel behavior.     

Competition in multi-modal transport networks: A dynamic approach

We analyze the behavior of market participants in a multi-modal commuter network, where roads are not priced, but public transport has a usage fee, which is set while taking the effects on the roads into account. In particular, we analyze the difference between markets with a monopolistic public transport operator, which operates all public transport links, and markets in which separate operators own each public transport link. To do so, we consider a simple dynamic transport network consisting of two serial segments and two parallel congestible modes of transport. We obtain a reduced form of the public transport operator’s optimal fare setting problem and show that, even if the total travel demand is inelastic, serial Bertrand–Nash competition on the public transport links leads to different fares than a serial monopoly; a result not observed in a static model. This results from the fact that trip timing decisions, and therefore the generalized prices of all commuters, are influenced by all fares in the network. We then use numerical simulations to show that, contrary to the results obtained in classic studies on vertical competition, monopolistic fares are not always lower than duopolistic fares; the opposite can also occur. We also explore how different parameters influence the price differential, and how this affects welfare.     

Car ownership,travel and land use: a comparison of the US and Great Britain

This paper conducts an international comparative analysis of relationships between car ownership, daily travel and urban form. Using travel diary data for the US and Great Britain, we estimate models of car ownership and daily travel distance. Both a structural model with daily travel conditional upon car ownership and a reduced form model for daily travel, excluding car ownership, are estimated. Model results are similar, and show that differences in travel are explained by (1) differences in demographics between the two countries; (2) lower household income in Great Britain; (3) country specific differences in costs of car ownership and use, transport supply and other factors we have not been able to control. We find that metropolitan size affects travel only in the largest metropolitan areas of the US. Daily travel distance is inversely related to local population density, but the effect is much stronger for the US than Great Britain. We conclude that higher transport costs in Great Britain promote economizing behavior, which in turns leads to more consumption of local goods and services and more use of alternative transport modes.     

Valuing crowding in public transport: Implications for cost-benefit analysis

This paper investigates the valuation of crowding in public transport trips and its implications in demand estimation and cost-benefit analysis. We use a choice-based stated preference survey where crowding levels are represented by means of specially designed pictures, and use these data to estimate flexible discrete choice models. We assume that the disutility associated with travelling under crowded conditions is proportional to travel time. Our results are consistent with and extend previous findings in the literature: passenger density has a significant effect on the utility of travelling by public transport; in fact, the marginal disutility of travel time in a crowded vehicle (6 standing-passengers/m²) is 2.5 times higher than in a vehicle with available seats. We also compare the effects of different policies for improving bus operations, and the effect of adding crowding valuation in cost-benefit analysis. In doing that, we endogenise the crowding level as the result of the equilibrium between demand and supplied bus capacity. Our results indicate that important benefits may be accrued from policies designed to reduce crowding, and that ignoring crowding effects significantly overestimate the bus travel demand the benefits associated with pure travel time reductions.     

A new approach to evaluating on-road public transport priority projects: balancing the demand for limited road-space

Despite widespread growth in on-road public transport priority schemes, road management authorities have few tools to evaluate the impacts of these schemes on all road users. This paper describes a methodology developed in Melbourne, Australia to assist the road management authority, VicRoads, evaluate trade-offs in the use of its limited road-space for new bus and tram priority projects. The approach employs traffic micro-simulation modelling to assess road-space re-allocation impacts, travel behaviour modelling to assess changes in travel patterns and a social cost benefit framework to evaluate impacts. The evaluation considers a comprehensive range of impacts including the environmental benefits of improved public transport services. Impacts on public transport reliability improvements are also considered. Although improved bus and tram reliability is a major rationale for traffic priority its use in previous evaluations is rare. The paper critiques previous approaches, describes the proposed method and explores some of the results found in its application. A major finding is that despite a more comprehensive approach to measuring the benefits of bus and tram priority, road-space reallocation is difficult to economically justify in road networks where public transport usage is low and car usage high. Strategies involving the balanced deployment of bus and tram priority measures where the allocation of time and space to PT minimises negative traffic impacts is shown to improve the overall management of road-space. A discussion of the approach is also provided including suggestions for further methodology development.

ITS applications in public transport: Improving the service to the transport system

This paper examines all the disparate technologies and techniques capable of smoothing the integration of public transport modes and services at both the urban and interurban scale. The paper focuses on the application of information technology and telematics solutions which have been designed to create as seamless a journey as possible from the point of view of the transport system user. The scope of the paper is therefore deliberately wide‐ranging and includes an examination of measures as apparently unconnected as smartcard ticketing, bus priority systems, automatic vehicle locationing, trip planning and on‐board information systems as well as new public transport services offering demand responsive travel and integration with taxi services. The paper intends to show how such technological solutions can be used to increase the attractiveness and competitiveness of fixed public transport networks in comparison to the door‐to‐door flexibility of the private car.