A preliminary analysis of the 2018/2019 Austin Travel Survey indicated that most off-campus students in Travis County, TX, tend to use cars rather than more sustainable transportation modes, significantly contributing to traffic congestion and environmental impact. This study aims to analyze the impacts of areal factors, including environmental and transportation factors, on students’ choices of travel mode in order to promote more sustainable transport behaviors. Additionally, we investigate the presence of spatial correlation and unobserved heterogeneity in travel data and their effects on students’ travel mode choices. We have proposed two Bayesian models—a basic model and a spatial model—with structured and unstructured random-effect terms to perform the analysis. The results indicate that the inclusion of spatial random effects considerably improves model performance, suggesting that students’ choices of mode are likely influenced by areal factors often ‘unobserved’ in many individual travel mode choice surveys. Furthermore, we found that the average slope, sidewalk density, and bus-stop density significantly affect students’ travel mode choices. These findings provide insights into promoting sustainable transport systems by addressing environmental and infrastructural factors in an effort to reduce car dependency among students, thereby supporting sustainable urban development.