The relationship between travel distance and fares, time costs and generalized costs in passenger transport

Abstract

Theoretical studies have discussed the importance of travel distance in passenger transport but the empirical evidence is weak. This paper reviews empirical studies and gives a comparative analysis of the relationship between travel distance on one hand and fare, generalized journey costs and time costs on the other hand for air transport, bus, fast boat, ferry, and rail in Norway.

Presuming that all transport modes are valid alternatives, a comparison of generalised journey costs for a passenger can identify which transport mode is preferred for a given distance. Fast boat is the preferred alternative for trips up to 50 kms followed by bus up till about 90 kms where rail becomes the best alternative for longer distances. The passengers’ marginal generalised costs for travelling one more kilometre depend on transport mode and vary from NOK 2 to NOK 6, of which the marginal time costs share varies from 11 % to 72 %.