Integrated Optimization of Bus Line Fare and Operational Strategies Using Elastic Demand

Abstract

An optimization approach for designing a transit service system is proposed. Its objective would be the maximization of total social welfare, by providing a profitable fare structure and tailoring operational strategies to passenger demand. These operational strategies include full route operation (FRO), limited stop, short turn, and a mix of the latter two strategies. The demand function is formulated to reflect the attributes of these strategies, in-vehicle crowding, and fare effects on demand variation. The fare is either a flat fare or a differential fare structure; the latter is based on trip distance and achieved service levels. This proposed methodology is applied to a case study of Dalian, China. The optimal results indicate that an optimal combination of operational strategies integrated with a differential fare structure results in the highest potential for increasing total social welfare, if the value of parameter <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML" id="M1"><mml:mrow><mml:mi>ε</mml:mi></mml:mrow></mml:math> related to additional service fee is low. When this value increases up to more than a threshold, strategies with a flat fare show greater benefits. If this value increases beyond yet another threshold, the use of skipped stop strategies is not recommended.

Document type: Article