Flexible transit routing model considering passengers’ willingness to pay

This paper proposes an alternative flexible transit model with two levels of bus stops, A level and B level. A-level bus stops are fixed, while B-level bus stops are flexible and provide service only when passengers indicate a strong willingness to pay (WTP). This fare structure encourages passengers to choose bus stops with their mobile phones or computers. An optimization model of 0-1 integer-programming is formulated based on whether certain B-level stops can be serviced. With a numerical example, we compare the performance of the proposed traversing method and a tabu search algorithm, both of which are adapted to solve the model. Finally, a real case is provided to evaluate the proposed transit system against comparable systems (e.g., a fixed-route transit system and a taxi service), and the result shows that the flexible transit routing model will help both passengers and bus companies, thus creating a win-win situation.