Rail bonus and its extension to rail operator bonus in urban corridor: comparisons across modes and operators

It has been reported that individuals are more willing to pay for rail travel than for bus travel, a phenomenon known as the ‘rail bonus’. The study conducts three investigations. First, the rail bonus, previously examined in a rural context, is examined in an urban context. Second, the rail bonus is evaluated in instances where rail is replaced not only by buses but also by trams and other rail operators, the latter being defined as the ‘rail operator bonus’. Third, in instances where a railway is replaced by another railway operator, two scenarios are investigated: (i) the level-of-service (LOS) of the railway in question is maintained at the same level prior to replacement; and (ii) the LOS of the railway after replacement is transferred. In the Kobe-Osaka corridor in Japan, the greatest bonus is observed when rail is replaced by buses (sometimes greater than 10% of the bus fare), followed by replacement by trams and other rail operators. The bonus is greater when the LOS is transferred than when it remains unchanged, indicating that people require greater compensation when their current LOS is lost. The bonuses appear unrelated to current rail usage, suggesting the presence of an existence value.