Valuing public transport service quality using a combined rating and stated preference survey

This paper presents the results of a study commissioned by the NZ Transport Agency in 2011 to look at the trade-off between price and quality for bus and train users in the three largest cities of New Zealand. The valuations were estimated through a large scale survey of 12,557 bus and rail passengers carried out between November 2012 and May 2013 on 1,082 different bus and train services. The aim of the study was to develop a method to value vehicle and stop/station quality from a passenger perspective. Unlike previous studies that focussed on specific attributes, the study adopted a top-down approach in which overall quality was rated on a five star system similar to that used by restaurants, films and hotels. Vehicle and stop/station quality were then included in a Stated Preference questionnaire alongside in-vehicle time, service frequency and fare to estimate ‘Willingness to Pay’ values. To ‘atomise’ the vehicle and stop/station ratings, a ‘rating’ survey was undertaken which used a nine point scale to rate vehicle and stop/station attributes. ‘Objective’ data on bus age, type and station features was also used to explain the ratings and assess the effect of station and train upgrades, new buses, bus and train types, vehicle age etc. The analysis is also extended to include ‘halo’ effects using Sydney train rating data. The advantages of the SP/Rating are considered to be three-fold. Firstly, unlike previous 'bottom-up' methods, no 'capping' of package values or downwards adjustment is required to assess improvements or changes in quality. Secondly, the approach lends itself to assessing ongoing operator performance in terms of vehicle cleanliness and staff behaviour and the quality of the vehicles and stop/stations provided. Thirdly, the approach is cost-effective in the use of onboard self-completion questionnaires that could be undertaken as part of general customer satisfaction monitoring.