Rail bonus in the corridor where alternative rail routes exist

Abstract

It has been reported that individuals are more willing to pay for rail travel than for bus travel, a phenomenon known as the 'rail bonus'. The following three investigations were conducted. First, the rail bonus, previously been examined in a rural context, is now examined in an urban context. Second, the rail bonus is evaluated in instances where the rail is replaced not only by buses but also by trams and other rail operators. Third, in instances where a railway is replaced by another railway operator, both scenarios are considered: (i) the level-of- service (LOS) of the railway in question is maintained at the same level prior to replacement; and (ii) the LOS of the railway after replacement is transferred. In the Kobe-Osaka corridor in Japan, the greatest bonus is observed when the rail is replaced by buses (sometimes greater than 10% of the rail fare), followed by replacement by trams and other rail operators. The rail bonus is found to be greater when the LOS transferred than when it remained unchanged, indicating that people require greater compensation when their current LOS is lost. Factors affecting the rail bonus and recognition of the importance of transport options are investigated.