TRANSIT CORPORATE PLANNING: A METHODOLOGY FOR TRADING-OFF FARES, SERVICE LEVELS, AND CAPITAL BUDGETS

This study describes the application of corporate planning concepts to the transit industry. The first two chapters describe the process of adopting transit goals and objectives, identifying the constraints and developing performance standards. Chapter 3 develops performance standards for the objective of maximizing ridership subject to external subsidy contraints. A performance standard, defined in terms of additional passenger trips per dollar of net revenue, is derived and quantified using marginal revenue and fare elasticity concepts. The performance standard, referred to as the passmark level, is the value of passenger trips per dollar which maximizes ridership while exhausting the external subsidy constraint. The passmark level is used in Chapter 4 to analyze trade-offs between fare and service policies and to plan service changes at the route level. Finally Chapter 5 is concerned with the development of capital budgets for the transit property using the passmark and other concepts of corporate finance.

• Record URL:
  • https://rosap.ntl.bts.gov/view/dot/638
• Corporate Authors:

  Ecosometrics, Incorporated

  4715 Cordell Avenue
  Bethesda, MD  United States  20814

  Urban Mass Transportation Administration

  Transit Management Division, 400 7th Street, SW
  Washington, DC  United States  20590
• Authors:
  • Lago, A M
• Publication Date: 1985-6-15

Media Info

• Features: Figures; Tables;
• Pagination: 77 p.

Subject/Index Terms

• TRT Terms: Analysis; Budgeting; Bus routes; Finance; Level of service; Management; Optimization; Pricing; Public transit; Ridership; Strategic planning; Transit operating agencies
• Identifier Terms: Urban Mass Transportation Act
• Uncontrolled Terms: Financial management
• Old TRIS Terms: Analytical method; Umta section 6
• Subject Areas: Administration and Management; Finance; Highways; Planning and Forecasting; Public Transportation; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00455067
• Record Type: Publication
• Report/Paper Numbers: UMTA-MD-06-0093-85-2
• Contract Numbers: DTUM60-82-C-72148
• Files: NTL, TRIS, USDOT
• Created Date: May 31 1987 12:00AM