Passenger potential and the operating result of the public transport organization
Passenger potential and the operating result of the public transport organization

Summary/Abstract: This study analyzes the type and direction of the impact of external factors on the operating results of the public transport organization operations. The multivariate regression model using the hierarchical method was applied in the study, which was utilized to indicate which of the factors and in what way affect the operating results of the investigated public transport organizations. Several variables from the NTD database on passenger transport were selected for the analysis, considering a type of organizations providing services of direct transport (transit company) or services contracted with a third party (private operator). In terms of external factors, the ones directly related to providing transport services and being on the side of passengers were identified and selected. In turn, the operating result was defined as the difference between revenues from fares and operating costs. The ultimate model included four factors that adequately include the explanatory variable and determine passenger potential. The empirical results indicate that the organizations that suffer losses simultaneously serve a significant part of the passenger transport market. At the same time, the operating result in public transport is significantly determined by passenger kilometers, the number of passengers, the population of the urbanized area, and average travel cost. These are the major factors in predicting the operating result in public transport. The vast majority of the surveyed public transport organizations recorded a loss proportional to the market share. Therefore, a decline in the level of individual factors determining passenger potential reduces the level of potential revenues from fares, and this, in turn, increases the loss. Therefore, when planning the operations of public transport, it is crucial to pay attention to primarily the factors determining the demand for this type of service.

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