Why Will Some Individuals Pay for Travel Information When It Can Be Free? Analysis of a Bay Area Traveler Survey

Abstract

Substantial government resources are invested in the provision of dynamic travel information. This information may help travelers make better decisions, which can reduce traffic congestion and pollution. A survey of 1,000 San Francisco Bay Area residents was conducted in 1998 as part of the TravInfo field test, and the stated preference questions were analyzed. Respondents were asked whether they sought travel information and, if so, whether they were willing to pay for a hypothetical advanced traveler information system (ATIS) that provided automatic notification of unexpected congestion on their usual travel routes, estimated time of delay from unexpected congestion on their usual routes, automatic alternate route planning around congestion, and estimated travel time on their usual route and on any planned alternate routes. Overall, willingness to pay for an ATIS was higher than expected from the literature. Sixty-six percent of the respondents sought travel information, and, of these information seekers, 71 percent were willing to pay for an ATIS (average $3.84 per month, or $0.74 per call). Statistical analysis involved estimating binary and ordered probit models with and without sample selectivity. Propensity for seeking travel information was significantly related to respondents who were female, employed, took longer trips, faced unexpected congestion, and owned a cellular telephone. Increased willingness to pay for an ATIS was related to respondents who were young and male, altered trips in response to information, and stated a greater desirability for the hypothetical ATIS. Findings suggest that a market may exist for high-quality dynamic travel information.