The purpose of this paper is 1) to figure out the factors determining rail passengers’ riderships, 2) to analyze the price, cross, and service elasticities of rail passenger demands by train type, and 3) to provide the policy implications for manage...
The purpose of this paper is 1) to figure out the factors determining rail passengers’ riderships, 2) to analyze the price, cross, and service elasticities of rail passenger demands by train type, and 3) to provide the policy implications for management in rail industry. The date employed are fare per passenger, service kilometer, and fares of competitive mode from 1980 to 1996. Analytical models for transportation demand elasticities and the empirical studies are reviewed.
The results of this study are summarized as follows. First, literature review shows that the analysis of demand elasticities has been employed in transportation planning very often and accurate analytical models are implementing for planning process. Second, in the estimation of demand by regression, estimators are consistent with general expectations-negative in fare and positive in service and fare of competitive mode. Third, rail passenger demand are elastic with respect to its fare, service, fares of competitive mode. The results imply the change of directions in rail management such as a decrease of fare to increase revenues.