Improving Ridership and Reducing Subsidy for Premium Bus Service in Kolkata Metro City

In several emerging countries such as India, premium quality buses (buses with enhanced comfort and security) are introduced with an aim to attract private car owners (choice riders). However, lack of ridership and high subsidy are the two key concerns regarding the operation of premium buses. This article documents a rational approach to address these concerns by improving the service characteristics of premium buses giving due consideration to the requirements of choice riders. The approach includes three major components: (1) development of generalized cost (GC) and demand model for choice riders, (2) identifying improvement levels for premium service attributes, and (3) development of a simulation model for evaluating alternative improvement scenarios. The case study on selected routes suggested that marginal fare increment and higher level of service are instrumental in eliminating the requirement of subsidy. In addition, even with the current fare, it is possible to improve the service, and thereby substantially reduce the burden of subsidy to the government. The work also highlights the importance of accounting travel behavior of users in service design, which is contrary to the concept of fare-centric design of bus services prevailing in several emerging countries.