Passenger demand is heavily influenced by cost – the opportunity cost of the time spent travelling, the relative quality of that time spent, and the real cost of the fare. Our Transport Planning team understands how passengers value each part of their journey, and use this knowledge to provide a clear view of demand for services.
We have provided demand and revenue forecasts for transport schemes and operators globally. Bedded in a thorough understanding of the market and analysis of historic demand, our experts identify the key drivers of both exogenous (external factors) and endogenous (influenced by the operator) factors. During the process we apply sound economics and industry knowledge to refine our forecasting parameters, including the selection of appropriate demand elasticities. By validating these parameters we establish the bedrock for robust demand forecasts.
Our clients choose us for our market insight, practical application of sound economics and high technical standards. We work with operators to establish pricing strategies which are attractive to passengers and help operators optimize the use of available capacity. Getting the balance right between demand, revenue, capacity and quality of service is what drives our clients’ success.