Monday, April 21, 2014

Ridership (Part 2)



Projecting how many existing auto trips will be diverted to HSR is a three step process.

--        Determine how many of the trips between each city pair are made by auto. Data is derived from the  American Travel Survey from the Bureau of Transportation Statistics.
-  -        Compare the relative percentage of all trips made by auto and air to the (already known) number of air   passengers between each city pair. Data on air passengers is from the T-100 report from the Bureau of Transportation Statistics.
- -         Adjust the number of auto trips to account for population growth. Data is from the Census Bureau.

For city pairs in which there were no regularly scheduled flights, I used the average rate of auto trips per population among other city pairs on the same corridor. The first chart shows the mode share of autos and the estimated number of auto trips for each city pair on the 5 regional corridors.

Corridor
City 1
City 2
% of trips by auto
Estimated Auto Trips

ATL
Greenville
91.2
8139803

ATL
Charlotte
82.6
4866432

Charlotte
Raleigh
93.2
3132800

Greensboro
ATL
53.5
314074

Greensboro
Charlotte
93.3
7751661
SOUTHEAST
Greensboro
Raleigh
97.6
2563200

Greensboro
Greenville
100
1922400

Greenville
Charlotte
96.7
4142966

Greenville
Raleigh
90.9
3586

Raleigh
ATL
59.6
953420






Austin
Houston
93.4
9911771
TEXAS
Houston
San Antonio
69.4
1154133

San Antonio
Austin
100
2788000






Chicago
Indy
57
523232

Chicago
Cincinnati
64.6
450361

Indy
Cincinnati
92.8
152592

Indy
STL
71.6
1707

Milwaukee
Chicago
92.7
412692
MIDWEST
Milwaukee
Indy
66.6
35067

Milwaukee
Cincinnati
25
12161

STL
Cincinnati
73.9
118908

STL
Chicago
69.4
1907415

STL
Milwaukee
48.4
62784






Cleveland
Detroit
88.7
1050823
GREAT LAKES
Detroit
Pitt
80
667919

Pitt
Cleveland
97.2
1158030






Tampa
Miami
60
605754
FLORIDA
Orlando
Tampa
96.7
2420000

Orlando
Miami
77.7
9588047
  
Since the number of people traveling by auto is much higher (an average of 78% of all trips), the pool of potential riders is higher than air travelers.

In order to predict how many of the travelers who are now driving will switch to HSR, we have to look at the value of time. US Department of Transportation guidelines for assessing the value of time in travel recommend 70% of the hourly equivalent a household’s income11. The median household income nationwide is about $50,000. That is an hourly equivalent (at 40 hours a week, 52 weeks per year) of $24.03. 70% of that value is $16.80 per hour, or 28 cents per minute. So on average, a traveler is willing to pay 28 cents extra for each minute of time saved. If a trip takes 3 hours to drive and 2 hours by rail, that is $16.80 in addition to the cost of driving, which is about 20 cents per mile3.

Since the value of time is dependent on income, the willingness to pay more to save time increases for higher income households. Using data on income distribution13, I calculate the percentage of travelers with incomes high enough to justify paying the additional cost of a rail ticket. For some routes (St. Louis-Chicago) nearly half of drivers will switch to rail. For other routes (such as Chicago-Indianapolis) only 2 percent of drivers are likely to switch. 

The time saved and cost required is different for each city pair. Thus, the income required to have a value of time high enough so that the value of the time saved is greater than the additional cost of rail over driving differs for each route. 


Corridor
City 1
City 2
Estimated Auto Trips
% of Auto Travelers with Net Benefits
Projected Riders

ATL
Greenville
8139803
2
440415

ATL
Charlotte
4866432
15
281962

Charlotte
Raleigh
3132800
7
994000

Greensboro
ATL
314074
6
18011

Greensboro
Charlotte
7751661
5
227738
SOUTHEAST
Greensboro
Raleigh
2563200
19
955789

Greensboro
Greenville
1922400
7
264100

Greenville
Charlotte
4142966
32
3810970

Greenville
Raleigh
3586
32
299

Raleigh
ATL
953420
10
62609







Austin
Houston
9911771
25
2446748
TEXAS
Houston
San Antonio
1154133
0
0

San Antonio
Austin
2788000
11
298102







Chicago
Indy
523232
2
7528

Chicago
Cincinnati
450361
0
0

Indy
Cincinnati
152592
0
0

Indy
STL
1707
0


Milwaukee
Chicago
412692
13
71311
MIDWEST
Milwaukee
Indy
35067
4
28

Milwaukee
Cincinnati
12161
0
0

STL
Cincinnati
118908
0
0

STL
Chicago
1907415
49
827982

STL
Milwaukee
62784
9
7997







Cleveland
Detroit
1050823
22
549311
GREAT LAKES
Detroit
Pitt
667919
19
147099

Pitt
Cleveland
1158030
22
1500869







Tampa
Miami
605754
32
49248
FLORIDA
Orlando
Tampa
2420000
9
403714

Orlando
Miami
9588047
7
497958
  
Now, I add in the air travelers discussed previously, to find the total ridership for each city pair.

Corridor
City 1
City 2
Total Projected Riders

ATL
Greenville
612636

ATL
Charlotte
2151426

Charlotte
Raleigh
1769192

Greensboro
ATL
18011

Greensboro
Charlotte
619624
SOUTHEAST
Greensboro
Raleigh
955789

Greensboro
Greenville
264100

Greenville
Charlotte
3902826

Greenville
Raleigh
1060

Raleigh
ATL
62609





Austin
Houston
3425106
TEXAS
Houston
San Antonio
973384

San Antonio
Austin
298102





Chicago
Indy
816412

Chicago
Cincinnati
0

Indy
Cincinnati
0

Indy
STL
0

Milwaukee
Chicago
430434
MIDWEST
Milwaukee
Indy
18768

Milwaukee
Cincinnati
0

STL
Cincinnati
0

STL
Chicago
2377748

STL
Milwaukee
125918





Cleveland
Detroit
661071
GREAT LAKES
Detroit
Pitt
385172

Pitt
Cleveland
1523858





Tampa
Miami
581730
FLORIDA
Orlando
Tampa
403714

Orlando
Miami
1582678
  
And here is the total high speed rail ridership for each corridor.

Corridor
Total Riders (M)
Texas
4.69
Florida
2.56
Southeast
10.35
Great Lakes
2.57
Midwest
3.76
TOTAL
23.93
  
These projections are conservative, in that they are based on current, actual numbers of travelers. Also, they do not include any new travelers. Some individuals who would choose not to travel if air and auto were the only options, may choose to travel at the price point offered by HSR. This analysis also does not take into account future increases in energy prices, which are likely to increase the cost of air and auto travel more than rail.