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Willingness-to-pay of public transport users for improvement in service quality

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  • Eboli, Laura
  • Mazzulla, G.

Abstract

In this paper, passenger willingness-to-pay (WTP) for improving the quality levels of a bus service is examined. Specifically, the objective of this research is to provide a tool for evaluating passenger willingness-to-pay by considering some qualitative service aspects, in addition to the traditional quantitative service aspects like travel time and cost. The adopted methodology is built on the calibration of behavioural models based on user choices. The WTP values are obtained as marginal rates of substitution between some service quality attributes and travel cost at constant utility. For this purpose, Multinomial and Mixed Logit models are introduced. The models were calibrated by using the data collected from an SP experiment in which each user makes a choice between an alternative representing the current service and two alternatives representing hypothetical bus services. In order to take into account the randomness of the estimated WTP, the limits of the confidence intervals are calculated.

Suggested Citation

  • Eboli, Laura & Mazzulla, G., 2008. "Willingness-to-pay of public transport users for improvement in service quality," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 38, pages 107-118.
    • Handle: RePEc:sot:journl:y:2008:i:38:p:107-118
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    File URL: http://hdl.handle.net/10077/5971
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    9. Patricia Yañez-Pagans & Daniel Martinez & Oscar A. Mitnik & Lynn Scholl & Antonia Vazquez, 2019. "Urban transport systems in Latin America and the Caribbean: lessons and challenges," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-25, December.
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    11. Eldeeb, Gamal & Mohamed, Moataz, 2022. "Consumers oriented investments in transit service quality improvements: The best bang for your buck," Research in Transportation Economics, Elsevier, vol. 94(C).
    12. Rong, Rui & Liu, Lishan & Jia, Ning & Ma, Shoufeng, 2022. "Impact analysis of actual traveling performance on bus passenger’s perception and satisfaction," Transportation Research Part A: Policy and Practice, Elsevier, vol. 160(C), pages 80-100.
    13. Gamal Eldeeb & Moataz Mohamed, 2020. "Understanding the Transit Market: A Persona-Based Approach for Preferences Quantification," Sustainability, MDPI, vol. 12(9), pages 1-20, May.
    14. Eboli, Laura & Mazzulla, Gabriella, 2011. "A methodology for evaluating transit service quality based on subjective and objective measures from the passenger's point of view," Transport Policy, Elsevier, vol. 18(1), pages 172-181, January.
    15. Sharma, Deepa & Pandit, Debapratim, 2021. "Determining the level of service measures to evaluate service quality of fixed-route shared motorized para-transit services," Transport Policy, Elsevier, vol. 100(C), pages 176-186.
    16. Tatiana Cantillo & Andrés Vargas & Víctor Cantillo & José Ramos, 2020. "What determines university student’s willingness to pay for bikeways?," Transportation, Springer, vol. 47(5), pages 2267-2286, October.
    17. Hensher, David A. & Ho, Chinh & Mulley, Corinne, 2015. "Identifying preferences for public transport investments under a constrained budget," Transportation Research Part A: Policy and Practice, Elsevier, vol. 72(C), pages 27-46.
    18. Md. Nazmul Huda Naim & Mohammed Sarfaraz Gani Adnan & Ashraf Dewan & Khatun E. Zannat, 2022. "Assessing the performance of public transport services in a developing country: A case study using data envelopment analysis," Growth and Change, Wiley Blackwell, vol. 53(1), pages 377-409, March.
    19. Agata Jazdzik-Osmolska, 2021. "Willingness to Pay for Road Safety Improvements in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 96-117.
    20. Juan Oña & Rocío Oña & Griselda López, 2016. "Transit service quality analysis using cluster analysis and decision trees: a step forward to personalized marketing in public transportation," Transportation, Springer, vol. 43(5), pages 725-747, September.

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