Effects of real-time transit information services on the patronage behavior of passengers

Abstract

Previous research regarding customer relationship management has shown that acquiring a new customer costs much more than retaining an existing customer. Thus, from the perspective of transit agencies, maintaining existing passengers is a cost-effective strategy. This paper investigates the patronage behavior of bus passengers when real-time transit information (RTTI) is made available. Survival analysis based on survey data collected in Kaohsiung city, Taiwan, shows that the risk of RTTI users ceasing their use of transit was 32.9% that of RTTI non-users. Moreover, passengers using RTTI tended to use public transportation 0.15 years longer than those who did not use RTTI. This study found that RTTI helps to retain passengers and provides concrete suggestions regarding RTTI promotion and bus business management for administrators.