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Fare discrimination and daily demand distribution in the BRT system in Bogotá

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Abstract

Bogotá transport authority changed Bus Rapid Transit (Transmilenio) fares in August 2012 to manage congestion, particularly during peak hours. They reduced fares and implemented fare discrimination between peak and off-peak hours to balance demand and make the system more affordable. To estimate the variation in the relative distribution of daily demand between peak and off-peak hours, we used information pertaining to passenger demand on working days. Our main data source was the number of entrances into Transmilenio stations daily between 2011 and 2013. The data before the fare intervention was gathered between March 2011 and July 2012. Post intervention data was gathered between August 2012 and December 2013. We assumed that the users’ observable characteristics did not change either before or after the intervention was carried out. The fares decreased from a flat fare of COP 1750 (1 USD = 1780 COP in August 2012) to COP 1700 in peak hours and to COP 1400 in off-peak hours. This paper proposes a fixed effects model to estimate the effect of fare reduction in the ratio between peak and off-peak ridership hours. The results suggest that fare reduction produced changes in demand behaviour between peak and off-peak hours, reducing the peak to off-peak demand ratio (P/oP) by around 9%. This change has different levels of impact depending on the income levels associated with each Transmilenio station, with a stronger impact in low-income zones.

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Fig. 1

Source: own elaboration with 2011 mobility survey

Fig. 2

Source: own elaboration with 2005, 2011 and 2015 mobility surveys

Fig. 3

Source: entrances by station for the TM system 2011–2013

Fig. 4

Source: entrances by station for the TM system 2011–2013

Fig. 5

Source: own elaboration

Fig. 6
Fig. 7

Source: own elaboration

Fig. 8

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Notes

  1. Between 2010 and 2016 the number of motorcycles increased by 124% (CCB 2017).

  2. Currently the authors are working on an estimation of price/demand elasticities for TM.

  3. Soacha is the most important of the Bogotá’s neighborhood municipalities. This municipality has about 510,000 inhabitants. In practice, it is part of Bogotá city forming a functional area, which has been emerging as the city gradually extends beyond its administrative boundaries.

  4. 2011 USD.

  5. This is not part of our study.

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Authors and Affiliations

  1. Grupo de Sostenibilidad Urbana y Regional, SUR, Universidad de los Andes, Edificio Mario Laserna Cra 1 Este No. 19ª-40, Bogotá, Colombia

    Luis A. Guzman

  2. Programa de Investigación en Tránsito y Transporte, Universidad Nacional de Colombia, Bogotá, Colombia

    Carlos A. Moncada

  3. Facultad de Economía, Universidad de los Andes, Edificio Mario Laserna Cra 1 Este No. 19ª-40, Bogotá, Colombia

    Santiago Gómez

Authors
  1. Luis A. Guzman
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  2. Carlos A. Moncada
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  3. Santiago Gómez
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Correspondence to Luis A. Guzman.

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Guzman, L.A., Moncada, C.A. & Gómez, S. Fare discrimination and daily demand distribution in the BRT system in Bogotá. Public Transp 10, 191–216 (2018). https://doi.org/10.1007/s12469-018-0181-7

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