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.     

Forecasting ridership for a metropolitan transit authority

The recent volatility in gasoline prices and the economic downturn have made the management of public transportation systems particularly challenging. Accurate forecasts of ridership are necessary for the planning and operation of transit services. In this paper, monthly ridership of the Metropolitan Tulsa Transit Authority is analyzed to identify the relevant factors that influence transit use. Alternative forecasting models are also developed and evaluated based on these factors—using regression analysis (with autoregressive error correction), neural networks, and ARIMA models—to predict transit ridership. It is found that a simple combination of these forecasting methodologies yields greater forecast accuracy than the individual models separately. Finally, a scenario analysis is conducted to assess the impact of transit policies on long-term ridership.     

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.     

Unlimited Access

Universities and public transit agencies have together invented an arrangement – called Unlimited Access – that provides fare-free transit service for over 825,000 people. The university typically pays the transit agency an annual lump sum based on expected student ridership, and students simply show their university identification to board the bus. This paper reports the results of a survey of Unlimited Access programs at 35 universities. University officials report that Unlimited Access reduces parking demand, increases students' access to the campus, helps to recruit and retain students, and reduces the cost of attending college. Transit agencies report that Unlimited Access increases ridership, fills empty seats, improves transit service, and reduces the operating cost per rider. Increases in student transit ridership ranged from 71 percent to 200 percent during the first year of Unlimited Access, and growth in subsequent years ranged from 2 percent to 10 percent per year. The universities' average cost for Unlimited Access is $30 per student per year.     

The asymmetric effects of gasoline prices on public transportation use in Taiwan

This study investigates the asymmetric effects of gasoline prices on public transportation use in Taiwan. The empirical results obtained are as follows. First, we verify that gasoline price is an important determinant of transit demand. Gasoline prices have significantly positive effects on bus and mass rapid transit (MRT) use. Second, MRT ridership is more sensitive than bus and railway ridership to gasoline price and income. In the face of oil prices escalation and economic growth, the MRT system should have higher priority in public transportation planning. Third, the effects of gasoline prices on bus and MRT use are asymmetric. Bus and MRT use increases faster when gasoline prices rise than it decreases when gasoline prices fall. The transit agencies should adjust operating strategies faster in the rising of oil prices than in the falling of oil prices. It is important for transit planning to use oil prices as signals and increase the flexibility of operation in dealing with the changes in ridership. Some strategies, such as enhancing the availability of transfer information and updating transit information timely, are helpful to move passengers efficiently.     

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.     

Does telecommuting reduce vehicle-miles traveled? An aggregate time series analysis for the U.S.

. This study examines the impact of telecommuting on passenger vehicle-miles traveled (VMT) through a multivariate time series analysis of aggregate nationwide data spanning 1966–1999 for all variables except telecommuting, and 1988–1998 for telecommuting. The analysis was conducted in two stages. In the first stage, VMT (1966–1999) was modeled as a function of conventional variables representing economic activity, transportation price, transportation supply and socio-demographics. In the second stage, the residuals of the first stage (1988–1998) were modeled as a function of the number of telecommuters. We also assessed the change in annual VMT per telecommuter as well as VMT per telecommuting occasion, for 1998. The models suggest that telecommuting reduces VMT, with 94% confidence. Together with independent external evidence, the results suggest a reduction in annual VMT on the order of 0.8% or less. Even with impacts that small, when informally compared to similar reductions in VMT due to public transit ridership, telecommuting appears to be far more cost-effective in terms of public sector expenditures.     

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.     

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.     

Non-commitment bias in public opinion on transit usage

Estimation of ridership on a new transit system in an area where no comparable service existed before is a difficult task of transit planning. Traditional modal split models cannot be used in these cases, because no data or basis for developing a new model or adjusting a “borrowed” model are available. One of the techniques which can be used in this type of situation, is to perform a “concept test” based on public opinion. This approach, however, is plagued with the phenomenon of non-commitment bias of interviewees, and tends to overestimate the ridership. A new fixed route and fixed schedule transit service in Johnson City in Tennessee provided a rare opportunity to perform an investigation on the non-commitment bias through “before” and “after” surveys. The analysis of the non-commitment and actual responses of a sample of residents revealed substantial bias. Overall, the non-commitment ridership estimate was about twice (100% greater than) the actual ridership.:It was also observed that the bias was higher for persons owning automobiles, and for work and shopping trips.     

Ridership estimation procedure for a transit corridor with new bus rapid transit service

Ridership estimation is a critical step in the planning of a new transit route or change in service. Very often, when a new transit route is introduced, the existing routes will be modified, vehicle capacities changed, or service headways adjusted. This has made ridership forecasts for the new, existing, and modified routes challenging. This paper proposes and demonstrates a procedure that forecasts the ridership of all transit routes along a corridor when a new bus rapid transit (BRT) service is introduced and existing regular bus services are adjusted. The procedure uses demographic data along the corridor, a recent origin–destination survey data, and new and existing transit service features as inputs. It consists of two stages of transit assignment. In the first stage, a transit assignment is performed with the existing transit demand on the proposed BRT and existing bus routes, so that adjustments to the existing bus services can be identified. This transit assignment is performed iteratively until there is no adjustment in transit services. In the second stage, the transit assignment is carried out with the new BRT and adjusted regular bus services, but incorporates a potential growth in ridership because of the new BRT service. The final outputs of the procedure are ridership for all routes and route segments, boarding and alighting volumes at all stops, and a stop‐by‐stop trip matrix. The proposed ridership estimation procedure is applicable to a new BRT route with and without competing regular bus routes and with BRT vehicles traveling in dedicated lanes or in mixed traffic. The application of the proposed procedure is demonstrated via a case study along the Alameda Corridor in El Paso, Texas. Copyright © 2015 John Wiley & Sons, Ltd.     

Impact of weather on urban transit ridership

Utilizing daily ridership data, literature has shown that adverse weather conditions have a negative impact on transit ridership and in turn, result in revenue loss for the transit agencies. This paper extends this discussion by using more detailed hourly ridership data to model the weather effects. For this purpose, the daily and hourly subway ridership from New York City Transit for the years 2010–2011 is utilized. The paper compares the weather impacts on ridership based on day of week and time of day combinations and further demonstrates that the weather’s impact on transit ridership varies based on the time period and location. The separation of ridership models based on time of day provides a deeper understanding of the relationship between trip purpose and weather for transit riders. The paper investigates the role of station characteristics such as weather protection, accessibility, proximity and the connecting bus services by developing models based on station types. The findings indicate substantial differences in the extent to which the daily and hourly models and the individual weather elements are able to explain the ridership variability and travel behavior of transit riders. By utilizing the time of day and station based models, the paper demonstrates the potential sources of weather impact on transit infrastructure, transit service and trip characteristics. The results suggest the development of specific policy measures which can help the transit agencies to mitigate the ridership differences due to adverse weather conditions.     

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.     

“Comparing guideway transit implementation plans,including the impact on road traffic”

A methodology for comparing phased implementation plans for a new fixed guideway transit system in an urban area is presented. Four assumptions are made: (1) the guideway system replaces existing or planned bus service, (2) superior service on the new system results in increased ridership when compared to buses; (3) presence of the guideway facility redirects outward urban growth resulting in additional ridership, and (4) conversely, the absence of any action on the new guideway facility reinforces a diffuse urban growth pattern that creates an irreversible loss of transit ridership. The economic comparision of alternative plans includes total as well as “relative” inflation of principal cost components. A key feature of the proposed methodology is including in the comparisons the costs of private automobile mileage that could have been replaced by transit. These costs are expressed as “fuel” and “all other” automobile costs; favorable transit system implementation schedules can then be identified as a function of parametrically assumed values for these two unit costs. A hypothetical example demonstrates the proposed method.     

Transit trip distribution model considering land use differences between catchment areas

Sustainable land use planning and advanced public transport system are believed to be effective solutions to traffic congestion. To this end, it is important to reveal the relationship between transit ridership and land use. However, current Direct Ridership Models only focus on the relationship between single station's boarding volume and the corresponding catchment area land use. This paper analyzed the ridership distribution between transit stations by considering the land use difference between catchment areas. Land use difference was calculated from point of interest (POI) data extracted from an electronic map of Beijing; transit trip distribution volume was obtained from ‘automatic fare collection’ facility. After data specification, a transit ridership distribution model was proposed and calibrated. The calibration results suggest that land use difference has a directly proportional correlation with transit ridership distribution. The research findings build a bridge between detailed urban form and public transport, which is of significance for the further research of sustainable urban planning. Copyright © 2016 John Wiley & Sons, Ltd.     

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.     

Impacts of weather on public transport ridership: Results from mining data from different sources

The existing studies concerning the influence of weather on public transport have mainly focused on the impacts of average weather conditions on the aggregate ridership of public transit. Not much research has examined these impacts at disaggregate levels. This study aims to fill this gap by accounting for intra-day variations in weather as well as public transport ridership and investigating the effect of weather on the travel behavior of individual public transit users. We have collected smart card data for public transit and meteorological records from Shenzhen, China for the entire month of September 2014. The data allow us to establish association between the system-wide public transit ridership and weather condition on not only daily, but also hourly basis and for each metro station. In addition, with the detailed trip records of individual card holders, the travel pattern by public transit are constructed for card holders and this pattern is linked to the weather conditions he/she has experienced. Multivariate modeling approach is applied to analyze the influence of weather on public transit ridership and the travel behavior of regular transit users. Results show that some weather elements have more influence than others on public transportation. Metro stations located in urban areas are more vulnerable to outdoor weather in regard to ridership. Regular transit users are found to be rather resilient to changes in weather conditions. Findings contribute to a more in-depth understanding of the relationship between everyday weather and public transit travels and also provide valuable information for short-term scheduling in transit management.     

Influencing factors and heterogeneity in ridership of traditional and app-based taxi systems

The growth of app-based taxi services has disrupted the urban taxi market. It has seen significant demand shift between the traditional and emerging app-based taxi services. This study explores the influencing factors for determining the ridership distribution of taxi services. Considering the spatial, temporal, and modal heterogeneity, we propose a mixture modeling structure of spatial lag and simultaneous equation model. A case study is designed with 6-month trip records of two traditional taxi services and one app-based taxi service in New York City. The case study provides insights on not only the influencing factors for taxi daily ridership but also the appropriate settings for model estimation. In specific, the hypothesis testing demonstrates a method for determining the spatial weight matrix, estimation strategies for heterogeneous spatial and temporal units, and the minimum sample size required for reliable parameter estimates. Moreover, the study identifies that daily ridership is mainly influenced by number of employees, vehicle ownership, density of developed area, density of transit stations, density of parking space, bike-rack density, day of the week, and gasoline price. The empirical analyses are expected to be useful not only for researchers while developing and estimating models of taxi ridership but also for policy makers while understanding interactions between the traditional and emerging app-based taxi services.

     

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.