Toll product preferences and implications for alternative payment options and going cashless

Abstract

There has been a great deal of research on deriving estimates of the value of travel time savings (VTTS) as a way of converting travel time benefits of toll roads relative to free routes into monetary units, the major user benefit in the development of forecasts of traffic and hence revenue streams. By contrast there has been almost no consideration given to identifying the role that various tollroad products play in establishing preferences for toll routes over non-tolled routes. Increasingly tollroads give users the option to pay by cash at a toll booth, by electronic tolling or by a pre- or post-paid debit and credit account system involving vehicle identification. The efficiency gained by electronic tolling for both the users and the operator have resulted in moves in many jurisdictions to eliminate cash collection entirely (or not introduce it when introducing a new tolled road facility), and to introduce a range of pre- and post-payment options. This has been accompanied by a growing move to distance-based charging in some contexts which is more cumbersome to structure with a cash option. This paper investigates current and potential travellers’ preferences for a range of toll products and how much individual’s are willing to pay for very specific toll products. Data from a stated choice experiment is used in a mixed logit model to establish the role that toll products play in the context of offered times and costs of alternative routes, in choosing between alternative ways of paying for the use of tolled routes.