Effects of a price incentive policy on urban rail transit passengers: A case study in Nanjing, China

Abstract

To alleviate travel congestion at peak periods or on congested routes, some measures for urban rail transit (URT) systems including fare incentive schemes and subsidy policies have been widely adopted. Existing measures can alleviate demand during peak periods or on congested routes to a certain extent, but they do not consider the passengers’ satisfaction with their travel experience. Consequently, this study aims to investigate passengers’ acceptance of a fare incentive policy offering a discounted fare during off-peak periods or on uncongested routes before it is implemented in Nanjing, China. To understand passengers’ acceptance of the policy, this study explores the effects of the policy on passengers’ route choices. Furthermore, the differences among passengers with respect to different travel purposes and travel times in route choices have been analyzed. A revealed preference (RP) survey and a stated preference (SP) survey consisting of 463 samples from URT passengers in Nanjing, China, were conducted and analyzed using a random-parameter multinomial logit (RPMNL) model. Results show that socio-economic variables, travel characteristics, travel cost, departure time, and travel distance significantly affect passengers’ route choices. Furthermore, the route choices of passengers with different travelling times and purposes vary. Commuters are most sensitive to travel cost during off-peak periods, followed by non-commuters who travel during peak periods. Departure time and travel distance most significantly affect the route choices of non-commuters during peak periods and off-peak periods, respectively. The findings of this study could assist transit agencies in designing attractive fare incentive policies for public transit passengers and offer valuable insights into effective demand management strategies. Moreover, the lessons derived from this study may guide the implementation of fare incentive policies in Nanjing, China, and elsewhere.