Demand for taxi services: new elasticity evidence

This paper investigates the factors that influence the choice of, and hence demand for taxis services, a relatively neglected mode in the urban travel task. Given the importance of positioning preferences for taxi services within the broader set of modal options, we develop a modal choice model for all available modes of transport for trips undertaken by individuals or groups of individuals in a number of market segments. A sample of recent trips in Melbourne in 2012 was used to develop segment-specific mode choice models to obtain direct (and cross) elasticities of interest for cost and service level attributes. Given the nonlinear functional form of the way attributes of interest are included in the modal choice models, a simple set of mean elasticity estimates are not behaviourally meaningful; hence a decision support system is developed to enable the calculation of mean elasticity estimates under specific future service and pricing levels. Some specific direct elasticity estimates are provided as the basis of illustrating the magnitudes of elasticity estimates under likely policy settings.     

Modeling traveler mode choice behavior of a new high-speed rail corridor in China

This study examines mode choice behavior for intercity business and personal/recreational trips. It uses multinomial logit and nested logit methods to analyze revealed preference data provided by travelers along the Yong-Tai-Wen multimodal corridor in Zhejiang, China. Income levels are found to be positively correlated with mode share increases for high-speed rail (HSR), expressway-based bus, and auto modes, while travel time and trip costs are negatively correlated with modal shift. Longer distance trips trigger modal shifts to HSR services but prevent modal shift to expressway-based auto use due to escalation of fuel cost and toll charges. Travelers are less elastic in their travel time and cost for trips by nonexpressway-based auto use modes. The magnitude of elasticity for travel time is higher than trip costs for business trips and lower for personal/recreational trips. The study provides some policy suggestions for transportation planners and decision-makers.     

Joint leisure travel optimization with user-generated data via perceived utility maximization

The lack of personalized solutions for managing the demand of joint leisure trips in cities in real time hinders the optimization of transportation system operations. Joint leisure activities can account for up to 60% of trips in cities and unlike fixed trips (i.e., trips to work where the arrival time and the trip destination are predefined), leisure activities offer more optimization flexibility since the activity destination and the arrival times of individuals can vary.To address this problem, a perceived utility model derived from non-traditional data such as smartphones/social media for representing users’ willingness to travel a certain distance for participating in leisure activities at different times of day is presented. Then, a stochastic annealing search method for addressing the exponential complexity optimization problem is introduced. The stochastic annealing method suggests the preferred location of a joint leisure activity and the arrival times of individuals based on the users’ preferences derived from the perceived utility model. Test-case implementations of the approach used 14-month social media data from London and showcased an increase of up to 3 times at individuals’ satisfaction while the computational complexity is reduced to almost linear time serving the real-time implementation requirements.     

Interpreting employee telecommuting adoption: An economics perspective

Travel demand is derived from activities at the trip destination; therefore, media that have the potential to provide services previously only supported by transportation will have a chance to be chosen by passengers. The idea of telecommuting is considered the most promising substitute of work trips and thus a good strategy of transportation demand management. From a microeconomics perspective, demand for goods or services can be interpreted as a function of prices and generalized income. Therefore, telecommuting adoption is viewed as a trade-off among the prices of telecommuting itself, substitutes, and complements, as well as generalized income and situational constrains incurred by the employee. The underlying rationale is interpreted by elasticity analysis of aggregate telecommuting demand, based on an adoption model, with respect to various decision variable. The results indicate that the elasticity with respect to the price that the employee may incur in order to telecommute is the largest one, and the elasticity with respect to the living space at home is the second one. Additionally, all of the elasticities found in the group of employees currently commuting by private transportation are greater than the corresponding ones found in the group of transit riders. These findings are expected to have significant implications of transportation policies. This revised version was published online in June 2006 with corrections to the Cover Date.     

Assessing systematic sources of variation in public transport elasticities: Some comparative warnings

There is an extensive and continually growing body of empirical evidence on the sensitivity of potential and actual users of public transport to fare and service levels. The sources of the evidence are disparate in terms of methods, data collection strategy, data paradigms, trip purpose, location, time period, and attribute definition. In this paper, we draw on a data set we have been compiling since 2003 that contains over 1100 elasticity items associated with prices and services of public transport, and car modes. The focus herein is on direct elasticities associated with public transport choice and demand, and the systematic sources of influence on the variations in the mean estimates for fares, in-vehicle time, and headway obtained from 319 studies. The major influences on variations in mean estimates of public transport elasticities are the time of day (peak, all day vs. off-peak), the data paradigm (especially combined SP/RP vs. revealed preference (RP)), whether an average fare or class of tickets is included, the unit of analysis (trips vs. vkm), specific trip purposes, country, and specific-mode (i.e., bus and train) in contrast to the generic class of public transport.     

The effect of the price of gasoline on the urban economy: From route choice to general equilibrium

RELU-TRAN2, a spatial computable general equilibrium (CGE) model of the Chicago MSA is used to understand how gasoline use, car-VMT, on-the-road fuel intensity, trips and location patterns, housing, labor and product markets respond to a gas price increase. We find a long-run elasticity of gasoline demand (with congestion endogenous) of ?0.081, keeping constant car prices and the TFI (technological fuel intensity) of car types but allowing consumers to choose from car types. 43% of this long run elasticity is from switching to transit; 15% from trip, car-type and location choice; 38% from price, wage and rent equilibration, and 4% from building stock changes. 79% of the long run elasticity is from changes in car-VMT (the extensive margin) and 21% from savings in gasoline per mile (the intensive margin); with 83% of this intensive margin from changes in congestion and 17% from the substitution in favor of lower TFI. An exogenous trend-line improvement of the TFI of the car-types available for choice raises the long-run response to a percent increase in the gas price from ?0.081 to ?0.251. Thus, only 1/3 of the long-run response to the gas price stems from consumer choices and 2/3 from progress in fuel intensity. From 2000 to 2007, real gas prices rose 53.7%, the average car fuel intensity improved 2.7% and car prices fell 20%. The model predicts that from these changes alone, keeping constant population, income, etc. aggregate gasoline use in this period would have fallen by 5.2%.     

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.     

Elasticities for taxicab fares and service availability

This study utilizes a unique dataset from New York City to examine the effects of taxi fare increases on trip demand and the availability of taxi service. The elasticity of trip demand with respect to fares is estimated to be –0.22; the elasticity of service availability with respect to the taxi fare is 0.28; and the elasticity of service availability with respect to total supply of service is near 1.0. These results have important implications for taxi regulatory decisions. First, fare increases do substantially increase industry revenues but at a lesser rate than the percentage increase in the fare. The implication for policy-makers is that fare elasticities must be carefully considered to obtain desired improvements in drivers' earnings. Second, service availability -- an important aspect of service quality that is generally overlooked during fare policy debates -- should be a central consideration in fare setting, given the considerable impact of fares on availability. Finally, where the supply of cabs needs to be expanded, the number of cabs can be significantly increased without harming the revenue stream of existing operators. This finding alleviates a major industry objection to issuing additional taxicab licenses.     

A dynamic model system of household car ownership,trip generation,and modal split: model development and simulation experiment

A dynamic model of household car ownership and mode use is developed and applied to demand forecasting. The model system consists of three interrelated components: car ownership, mechanized trip generation, and modal split. The level of household car ownership is represented as a function of household attributes and mobility measures from the preceding observation time point using an ordered-response probit model. The trip generation model predicts the weekly number of trips made by household members using car or public transit, and the modal split model predicts the fraction of trips that are made by public transit. Household car ownership is a major determinant in the latter two model components. A simulation experiment is conducted using sample households from the Dutch National Mobility Panel data set and applying the model system to predict household car ownership and mode use under different scenarios on future household income, employment, and drivers’ license holding. Policy implications of the simulation results are discussed.     

Meta-analysis of public transport demand

The present study uses meta-regression in order to explain the wide variation in elasticity estimates obtained in previous demand studies, and provide summaries of several bus demand elasticities.One important finding as to the price elasticity is that the often cited rule of thumb of −0.3 holds good if quality of service represented by vehicle-kilometres is treated as an exogenous variable, but not when it is treated as endogenous.Based on the results it is recommended that demand models should include car ownership, price of petrol, own price, income and some measure of service among the explanatory variables and that the service variable should be treated as endogenous.In previous meta-studies in this field focus has been on own price elasticity only while this study also includes elasticities with respect to, level of service, income, price of petrol and car ownership. The short run for the US are found to be −0.59, 1.05, −0.62, 0.4 and −1.48 respectively.     

Ramp meters on trial: Evidence from the Twin Cities metering holiday

Ramp meters in the Twin Cities have been the subject of a recent test of their effectiveness, involving turning them off for eight weeks. This paper analyzes the results with and without ramp metering for several representative freeways during the afternoon peak period. Seven performance measures: mobility, equity, productivity, consumers’ surplus, accessibility, travel time variation and travel demand responses are compared. It is found that ramp meters are particularly helpful for long trips relative to short trips. Ramp metering, while generally beneficial to freeway segments, may not improve trip travel times (including ramp delays). The reduction in travel time variation comprises another benefit from ramp meters. Non-work trips and work trips respond differently to ramp meters. The results are mixed, suggesting a more refined ramp control algorithm, which explicitly considers ramp delay, is in order.     

Auto travel fuel elasticity in a rapidly developing urban area

This paper presents results of a study conducted to quantify the effect of fuel cost increases on household auto travel in Riyadh, the rapidly developing capital of Saudi Arabia. Responses of a stratified random sample of 1648 individual households provided the data base for the analysis. The auto trip measures of shrinkage ratio, arc and log-arc elasticities were calculated for households categorized by income and family size. The elasticity measures suggested the existence of significant relationship among the factors of fuel cost, the number of daily auto trips, and family size. It was found that as fuel prices increased, the number of daily trips decreased, and that this decrease in daily trips was greater with larger family size. A step-wise multiple regression analysis with three independent variables of car ownership, family size, and daily fuel expenditures was developed. The model was fairly accurate in predicting variations in daily household travel. The regression parameter of the variable fuel cost was also used to derive demand elasticity to fuel expenditures. Elasticity measures ranged between -0.30 and -0.37.     

Empirical evidence on cruising for parking

The literature on car cruising is dominated by theory. We examine cruising for parking using a nation-wide random sample of car trips. We exclude employer-provided and residential parking. We focus on the Netherlands, where levels of on-street and off-street parking prices are locally the same. We demonstrate then that due to this price setting the average cruising time in the Netherlands is only 36 s per car trip. Furthermore, we show that cruising is not random. It is more common in (large) cities that receive more car trips, particularly for shopping and leisure activities. Cruising time increases with travel duration as well as with parking duration. Cruising has a distinctive pattern over the day with a peak in the morning, so the order of arrival is essential to parking. Because cruising has a spatial and time component, policies may be considered that reduce cruising time through flexible pricing of parking or improved information about vacant parking spaces.     

Modelling route choice behaviour in multi-modal transport networks

The paper presents new findings on the influence of multi-modal trip attributes on the quality and competitiveness of inter-urban multi-modal train alternatives. The analysis covers the entire trip from origin to destination, including access and egress legs to and from the train network. The focus is on preferences for different feeder modes, railway station types and train service types as well as on the relative influence of time elements and transfer penalties. Data from dedicated surveys are used including individual objective choice sets of 235 multi-modal homebound trips in which train is the main transport mode. The observed trips have origins and destinations within the Rotterdam–Dordrecht region in The Netherlands with an average total trip time of 50 minutes. Hierarchical Nested Logit models are estimated to take account of unobserved similarities between alternatives at the home-end and the activity-end of the trip respectively, resulting in two-level nesting structures which differentiate between intercity (IC) and non-intercity railway station types at the upper level and between transit and private access modes at the lower level. In order to reflect the multi-dimensional structure of the data a more advanced so-called Multi-Nested GEV model according to the Principles of Differentiation has been estimated which significantly improves the explanatory power and stresses the importance of the home-end of the multi-modal trip.     

Impact of telecommuting on spatial and temporal patterns of household travel

A spatial and temporal analysis of travel diary data collected during the State of California Telecommuting Pilot Project is performed to determine the impacts of telecommuting on household travel behavior. The analysis is based on geocoded trip data where missing trips and trip attributes have been augmented to the extent possible. The results confirm the earlier finding that the Pilot Project telecommuters substantially reduced travel; on telecommuting days, the telecommuters made virtually no commute trips, reduced peak-period trips by 60%, total distance traveled by 75%, and freeway miles by 90%. The spatial analysis of the trip records has shown that the telecommuters chose non-work destinations that are closer to home; they exhibited contracted action spaces after the introduction of telecommuting. Importantly, this contraction took place on both telecommuting days and commuting days. The telecommuters distributed their trips, over the day and avoided peak-period travel on telecommuting days. Non-work trips, however, show similar patterns of temporal distribution on telecommuting days and commuting days. Non-work trips continued to be made during the lunch period and late afternoon and evening hours.     

Willingness to Pay for Airline Service Quality

Abstract

This paper looks at estimated valuations of some service‐quality attributes in an airline choice context using stated preferences methods. The analysis is based on information obtained in the most important route connecting the Canary Islands with the Iberian Peninsula: Gran Canaria–Madrid, and tries to contribute to the body of knowledge in this area, given the relatively few studies of the monetary valuations of air travel regarding level‐of‐service attributes. A feature of this analysis is the examination of variations in values according to different characteristics of the service, such as price, penalties for changes in the ticket, legroom, food, etc.; the currently experienced level of the attribute, and various socio‐economic factors that affect the characteristics of the trip and passengers. In addition, the important issue of added value regarding different attributes is addressed, obtaining the willingness‐to‐pay for different improvements of service quality. A further analysis is made about how taste heterogeneity (market segments) affects these values. Results from the stated preference experiment and the market value of some comparable service are also compared. Finally, the paper brings together evidence from other studies and compares them with the findings obtained herein.     

The travel and environmental implications of shared autonomous vehicles,using agent-based model scenarios

Carsharing programs that operate as short-term vehicle rentals (often for one-way trips before ending the rental) like Car2Go and ZipCar have quickly expanded, with the number of US users doubling every 1–2 years over the past decade. Such programs seek to shift personal transportation choices from an owned asset to a service used on demand. The advent of autonomous or fully self-driving vehicles will address many current carsharing barriers, including users’ travel to access available vehicles.This work describes the design of an agent-based model for shared autonomous vehicle (SAV) operations, the results of many case-study applications using this model, and the estimated environmental benefits of such settings, versus conventional vehicle ownership and use. The model operates by generating trips throughout a grid-based urban area, with each trip assigned an origin, destination and departure time, to mimic realistic travel profiles. A preliminary model run estimates the SAV fleet size required to reasonably service all trips, also using a variety of vehicle relocation strategies that seek to minimize future traveler wait times. Next, the model is run over one-hundred days, with driverless vehicles ferrying travelers from one destination to the next. During each 5-min interval, some unused SAVs relocate, attempting to shorten wait times for next-period travelers.Case studies vary trip generation rates, trip distribution patterns, network congestion levels, service area size, vehicle relocation strategies, and fleet size. Preliminary results indicate that each SAV can replace around eleven conventional vehicles, but adds up to 10% more travel distance than comparable non-SAV trips, resulting in overall beneficial emissions impacts, once fleet-efficiency changes and embodied versus in-use emissions are assessed.     

Dynamic network equilibrium for daily activity-trip chains of heterogeneous travelers: application to large-scale networks

Applications of dynamic network equilibrium models have, mostly, considered the unit of traffic demand either as one-way trip, or as multiple independent trips. However, individuals’ travel patterns typically follow a sequence of trips chained together. In this study we aim at developing a general simulation-based dynamic network equilibrium algorithm for assignment of activity-trip chain demand. The trip chain of each individual trip maker is defined by the departure time at origin, sequence of activity destination locations, including the location of their intermediate destinations and their final destination, and activity duration at each of the intermediate destinations. Spatial and temporal dependency of subsequent trips on each other necessitate time and memory consuming calculations and storage of node-to-node time-dependent least generalized cost path trees, which is not practical for very large metropolitan area networks. We first propose a reformulation of the trip-based demand gap function formulation for the variational inequality formulation of the Bi-criterion Dynamic User Equilibrium (BDUE) problem. Next, we propose a solution algorithm for solving the BDUE problem with daily chain of activity-trips. Implementation of the algorithm for very large networks circumvents the need to store memory-intensive node-to-node time-dependent shortest path trees by implementing a destination-based time-dependent least generalized cost path finding algorithm, while maintaining the spatial and temporal dependency of subsequent trips. Numerical results for a real-world large scale network suggest that recognizing the dependency of multiple trips of a chain, and maintaining the departure time consistency of subsequent trips provide sharper drops in gap values, hence, the convergence could be achieved faster (compared to when trips are considered independent of each other).     

A model for integrated analysis of household location and travel choices

We develop a model for integrated analysis of household location and travel choices and investigate it from a theoretical point of view.Each household makes a joint choice of location (zone and house type) and a travel pattern that maximizes utility subject to budget and time constraints. Prices for housing are calculated so that demand equals supply in each submarket. The travel pattern consists of a set of expected trip frequencies to different destinations with different modes. The joint time and budget constraints ensure that time and cost sensitivities are consistent throughout the model. Choosing the entire travel pattern at once, as opposed to treating travel decisions as a series of isolated choices, allows the marginal utilities of trips to depend on which other trips are made.When choosing trip frequencies to destinations, households are assumed to prefer variation to an extent varying with the purpose of the trip. The travel pattern will tend to be more evenly distributed across trip ends the less similar destinations and individual preferences are. These heterogeneities of destinations and individual preferences, respectively, are expressed in terms of a set of parameters to be estimated.     

Passengers’ response to transit fare change: an ex post appraisal using smart card data

Fare change is an effective tool for public transit demand management. An automatic fare collection system not only allows the implementation of complex fare policies, but also provides abundant data for impact analysis of fare change. This study proposes an assessment approach for analyzing the influence when substituting a flat-fare policy with a distance-based fare policy, using smart card data. The method can be used to analyze the impact of fare change on demand, riding distances, as well as price elasticity of demand at different time and distance intervals. Taking the fare change of Beijing Metro implemented in 2014 as a case study, we analyze the change of network demand at various levels, riding distances, and demand elasticity of different distances on weekdays and weekends, using the method established and the smart card data a week before and after the fare change. The policy implication of the fare change was also addressed. The results suggest that the fare change had a significant impact on overall demand, but not so much on riding distances. The greatest sensitivity to fare change is shown by weekend passengers, followed by passengers in the evening weekday peak time, while the morning weekday peak time passengers show little sensitivity. A great variety of passengers’ responses to fare change exists at station level because stations serve different types of land usage or generate trips with distinct purposes at different times. Rising fares can greatly increase revenue, and can shift trips to cycling and walking to a certain extent, but not so much as to mitigate overcrowding at morning peak times. The results are compared with those of the ex ante evaluation that used a stated preference survey, and the comparison illustrates that the price elasticity of demand extracted from the stated preference survey significantly exaggerates passengers’ responses to fare increase.