Integrated Optimization of Bus Line Fare and Operational Strategies Using Elastic Demand

Abstract EN

An optimization approach for designing a transit service system is proposed.

Its objective would be the maximization of total social welfare, by providing a profitable fare structure and tailoring operational strategies to passenger demand.

These operational strategies include full route operation (FRO), limited stop, short turn, and a mix of the latter two strategies.

The demand function is formulated to reflect the attributes of these strategies, in-vehicle crowding, and fare effects on demand variation.

The fare is either a flat fare or a differential fare structure; the latter is based on trip distance and achieved service levels.

This proposed methodology is applied to a case study of Dalian, China.

The optimal results indicate that an optimal combination of operational strategies integrated with a differential fare structure results in the highest potential for increasing total social welfare, if the value of parameter ε related to additional service fee is low.

When this value increases up to more than a threshold, strategies with a flat fare show greater benefits.

If this value increases beyond yet another threshold, the use of skipped stop strategies is not recommended.