Same Day Essay: Thesis On Demand Forecasting …
Demand Forecasting Techniques | Demandpapers
The degree of PT dependency not only determines the level of PT demand but also determines the level of demand elasticity against the changes in fares. In explaining the insensitivity of Mexico City metro users to metro services, pointed out the likely captivity of the metro users to metro services. Therefore, availability of substitute (alternative) transport modes is an important factor in determining the PT demand. Substitute of public transport is private transport. Private car is the main competitor of PT () and the only viable substitute for bus () however, it has its own costs and limitations as well, many of which are already pointed out above. Private transport is not free of limitations e.g. extra fuel costs and taxes, road pricing, high parking charges, limited parking spaces, high car insurance premiums, traffic congestions, just a few to mention. When there is more than one mode available, each mode depends on the others by substitution or complementarity effects (). In the choice of transport mode individuals behave rationally between public and private transport ().
demand forecasting system | Custom PHD Thesis
Economic factors: Economic factors such as the level of household income, employment rate and the general level of wealth in a country are also among the main determinants of the PT use. stated that transport demand, by definition, depended on household income and transport price. If household income exceeds certain threshold, it reduces the demand because people tend to use their own private cars. concluded that rising incomes and increased motorization discouraged the use of PT in England and France. made similar comments on the issue saying that the level of income influences how travelers look at PT. Excerpt goes like this: The results suggest that for the majority of metro users, whose salaries are based on low multiples of the minimum wage and are not potential car owners, the Mexico City metro is perceived as a normal good. However, for middle/high income earners, who can afford to buy a private vehicle when their incomes increase, the Mexico City metro is perceived as an inferior good. In a similar manner, pointed out that travel cost and household income were among important factors affecting individuals choice of transportation.