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Is fare increment desirable for ensuring operational viability of private buses?

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  • Dandapat, Saurabh
  • Cheranchery, Munavar Fairooz
  • Maitra, Bhargab

Abstract

The paper reports an investigation on the requirement of fare increment for achieving the operational viability of private buses in the context of an emerging country. Taking an existing route in Kolkata city which is served by private buses, several scenarios were investigated to achieve the viability of service through interventions in fare, design of service, and supply of buses. A simulation framework was used for the evaluation of various scenarios. The study brings out new evidences to question the conventional approach of increasing the bus fare to satisfy the operational viability. It is shown that the fare and the revenue requirements are distorted due to the oversupply of buses and non-optimal service. The analysis shows that even with the present fare, it is possible to resolve the viability issue by optimizing the service and supply. The results presented in the paper are case specific but are likely to encourage policy makers to carry out similar investigations in other cities in India as well as in other developing countries to improve urban bus service without putting an additional burden on the users.

Suggested Citation

  • Dandapat, Saurabh & Cheranchery, Munavar Fairooz & Maitra, Bhargab, 2017. "Is fare increment desirable for ensuring operational viability of private buses?," Transport Policy, Elsevier, vol. 59(C), pages 134-141.
    • Handle: RePEc:eee:trapol:v:59:y:2017:i:c:p:134-141
    DOI: 10.1016/j.tranpol.2017.07.010
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    Cited by:

    1. Cheranchery, Munavar Fairooz & Maitra, Bhargab, 2021. "Improving quality of ordinary bus service in Kolkata city: Integrating conflicting requirements of users and transit operator," Transport Policy, Elsevier, vol. 111(C), pages 17-27.
    2. Cheranchery, Munavar Fairooz & Ansari, Fathima & Ali, Mubarak, 2024. "Is customized bus service for commuter segments the need of the hour? An integrated IPA-machine learning framework to redefine commuter segments based on quality expectations," Transport Policy, Elsevier, vol. 154(C), pages 16-25.
    3. Cheranchery, Munavar Fairooz & Maitra, Bhargab, 2018. "Investigating perception of captive and choice riders for formulating service standards of ordinary and premium buses in Indian cities," Transport Policy, Elsevier, vol. 72(C), pages 89-96.
    4. Roy, Subhojit & Basu, Debasis, 2020. "Selection of intervention areas for improving travel condition of walk-accessed bus users with a focus on their accessibility: An experience in Bhubaneswar," Transport Policy, Elsevier, vol. 96(C), pages 29-39.

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