SUPPLY FACTORS AND TRANSIT DEMAND IMPACTS.

The mix of fare increase and service reduction may not be the best strategy to reduce subsidy levels for transit operations. This paper investigates the effects of fare and service characteristics on transit demand. The travel decision-making process is structured as a choice process, and within this framework the factors likely to affect travel decisions are identified. The strength of the relationship between these factors and transit demand is then quantified. Finally, this information is used to identify three general service design strategies which are likely to be effective in retaining or attracting ridership. These strategies are selective increases in transit fares, the implementation of premium services, and improvements in the quality of transit service.