Economic Policy

Applied Transport Economics: Policy, Management & Decision by Stuart Cole

By Stuart Cole

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Bradford (1976) Bradford Bus Study, Final Report, West Yorkshire PTE, Leeds. CAA (2002) UK Airlines Annual Operating, Traffic and Financial Statistics, 2001 CAP 734, Civil Aviation Authority, London. CAA (2003) UK Airlines (CAP 672) Annual Operating, Traffic and Financial Statistics 2003. Carroll, M (1997) Discussion with author on First Great Western. Cassani, B and Kemp, K (2003) Go, An Airline Adventure, Time Warner Books, London. CB (2005) Cardiff Bus Business Plan 2005–09, Bws Caerdydd/Cardiff Bus.

Other techniques have been adopted by operators to flatten out the peak or fill in the trough between peaks: 31 Applied Transport Economics • • • • • • • Pricing through off peak discounts or a peak surcharge. Even if this policy does not flatten the peak, it may increase the overall demand level which may be a better alternative in revenue and profitability terms. Flexible hours are not popular with workers generally for family and social reasons. In some cases, however, they have been negotiated with education authorities to move the schools’ transport peak, primarily in the afternoon.

YB (1984) Bournemouth Yellow Buses campaign ‘Get around on the Yellows’. 35 CHAPTER 2 Elasticity of Demand PRICE ELASTICITY OF DEMAND Introduction The term elasticity is one which may seem complex, but is clearly illustrated by the day to day marketing of the transport industry in the various advertising campaigns seen in the media. Consider the range of train operator return fares per person from London to Cardiff and Newcastle. 1 Rail fare options from London (2004) Fare type (return) First Great Western to Cardiff (145 miles) 1st Standard (£) (£) GNER to Newcastle (270 miles) 1st Standard (£) (£) Open4 Saver4 Super saver4 Super advance1 Apex3 Off-peak one Off-peak two Off-peak three 169 114 264 51 107 49 41 36 24 593 822 1021 176 84 62 48 203 342 481 Source: First Great Western (FGW, 2004a); GNER Notes: 1.

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