By Stuart Cole
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Additional resources for Applied Transport Economics: Policy, Management & Decision Making
On its return morning journey out of the central area terminus it might run empty to the depot. Travel patterns on London Underground show peak (LT, 2002) demand to be three times that at midday when an average of 70 per cent of peak trains operate. Underground travel increases sharply during weekday peak times, falling to much lower levels during the off-peak. Bus trips and troughs are less pronounced. Weekend travel patterns show a more even distribution of trips during the principal shopping hours.
A fares reduction of 50 per cent led to a ridership increase of 275 per cent even after fares were subsequently raised to 66 per cent of the original level. The Stagecoach data suggest: • Fares elasticity can be greater than unity (although some of the increase might be the result of cross elasticity effects of transfers from other operators). • Fares decreases and fares increases may not have the same elasticity for similar percentage changes. 2 elasticity. 19 This indicates a relatively inelastic peak journey demand in both the short and long runs.
8). However, the extension of networks by airlines such as easyJet has led to a loss of business travellers who take advantage of the lack of inhibitors (eg Saturday night away) imposed by the traditional carriers. These have reacted by removing such inhibitors or by reducing their fares for early booking by 50 per cent or more. 8). 8 shows, the impact of transatlantic traffic and internal United States air travel has its effects on both traditional (eg United) and ‘no frills’ (eg South West) airlines but generally for non-price reasons.
Applied Transport Economics: Policy, Management & Decision Making by Stuart Cole