An Exploration of Factor Affecting Household’s Travel Cost Budget Considering Household Life Stages Applying to Urban Bus Ridership

Abstract

Urban bus reform so-called Trans Koetaradja (TK) is regarded as a potential urban transport policy aiming at alleviating autos traffic congestion and mitigating highly private mode dependency in Banda Aceh, Indonesia. The new bus system proposed by the Government has been operated since early 2018, and it remains free of fare services due to subsidy provide by the Government as the bus corridors have been expanded the budget getting escalating year by year. To reduce the burden of subsidies, the Government intends to drop monetary aid by applying full fare for the bus. However, declining the subsidy could affect bus ridership, especially low-income households whose captive riders may not afford the ticket. It hypothesizes that the travel cost budget (TCB) has significantly influenced the ability to pay for a particular household to afford the bus fare. The TCB for this study defines the maximum amount of money allocated by a specific family for their transportation within a month. Therefore, this study is aiming at exploring factors that effecting the households' transportation expenditures, taking into account household life stages (HLS) among TK' bus users. The use of revealed preference data obtained in 2019, the regression analysis of the ordinary least square (OLS) method, was used to calibrate and teste the exogenous variables across HLS. To simplify, the HLS in this study is segmented as early, middle, and established HLS. The distribution of TCB across HLS revealed that the share of transport expenditure on average to their monthly income had shared about 10-11 %. The finding from the OLS indicates that the variables of the female gender, monthly income, and the number of owned motorcycles have significant contributions to the TCB. The most significant finding is the impact of monthly income on the TCB across HLS. It exhibited early, and middle HLS has shown more spending share on income compared to the established HLS

Understanding Household's Travel Costs Budget Frontier in Banda Aceh, Indonesia

“…The differences between this work and work done by [11] are in the targeted respondents and group of households. This work focuses on how people in Banda Aceh spent their monthly transportation expenditure considering income group segmentations, while the previous work [11] is more specific investigating the bus usage, using an onboard survey and has targeted groups based on household life stages. The modeling framework used for both exploring travel time and travel costs frontier is based on the SFA or also known as the Stochastic Frontier Model (SFM).…”

“…The questionnaires were designed to capture relevant information on travel behavior and socio-demographic attributes from targeted respondents using the paper-pencilbased direct interviews based on Stated Preference choices [3,9,[11][12] to design questionnaires for 400 samples.…”

“…Further exploration of the travel costs budget is conducted by authors of [11], which have investigated factors affecting household travel costs budget in Banda Aceh considering household life stages and applying only for bus usages. This investigation is the first stage of the same funding with this work.…”

Travel Cost Budget and Ability of Urban Bus Users to Pay Considering the Income Classes in Indonesia

“…A model was designed using multiple linear regression to determine the significant factors contributing to the household travel cost budget (TCB) previously described as the maximum amount of money households are willing to allocate for their transportation within a month and usually stated in Rupiah/month (Sugiarto et al, 2014b;2020b). The exogenous variable used includes the socioeconomic and daily travel attributes as well as the observed TCB which were later regressed to the endogenous variables.…”

Study of Public Perceptions on the Urban Railway Planning of the City of Banda Aceh and the Surrounding Areas

“…Currently, the main public transport with a fixed route in Banda Aceh city is the urban public transport called Trans Koetaradja. This public transport is a government-owned bus that has operated since early 2018 at free fares (Mutiawati et al, 2022;Sugiarto et al, 2018). In general, infrastructure developments will increase the economic growth of a region, both the community and the government.…”