Passenger automobile transportation economics and organization. Textbook
© Vadim Shmal, 2025
© Pavel Minakov, 2025
ISBN 978-5-0068-8344-4
Created with Ridero smart publishing system
1 PASSENGER AUTOMOBILE TRANSPORTATION ECONOMICS AND EFFICIENCY
The economy of passenger automobile transportation is a system of interrelated processes that ensure the viability, sustainability and development of transport services. It combines the costs of maintaining rolling stock, staff remuneration, traffic management, maintenance, infrastructure and information systems, as well as management decisions related to tariffs, contracts and the distribution of financial responsibility between the carrier and the customer of the service. The main objective of the economic model is to ensure the availability and quality of transportation with a rational use of resources, avoiding situations where network expansion or increased output leads to a disproportionate increase in costs without improving the actual mobility of the population.
The basis of economic sustainability is the cost structure of the carrier. The most significant elements are fuel or energy costs, salaries for drivers and support staff, maintenance and repair of rolling stock, purchase of spare parts and operating materials, infrastructure maintenance, insurance, depreciation and rental of rolling stock. A significant part is taken up by indirect costs – the organization of dispatching control, driver training, updating information systems, data processing, security, and sanitation. The change in the cost structure is directly related to transportation technology: for example, increasing the intervals at night reduces operating costs without compromising quality, and the organization of dedicated lanes reduces fuel consumption by reducing traffic jams and making traffic more regular.
Economic decisions are inextricably linked to the specifics of demand. Stable rush hours require heavy output, while off-peak periods allow for reduced traffic intensity. It is important to understand that each additional bus on the line brings a double effect: on the one hand, the intervals are shortened and the attractiveness of the service improves, on the other hand, the direct costs of fuel, labor and equipment wear are increasing. Therefore, the optimal distribution of output is based on an analysis of the actual occupancy and time budgets of passengers. With high variability in demand, it is advisable to switch to adaptive schemes: shortened revolutions, efforts in areas of increased load, redistribution of equipment within shifts, and the use of rolling stock of different capacities depending on the time of day.
Tariffs and financing models play a special role. In urban transport, the fare is more often fixed and does not reflect the full cost of the trip, since a significant part of the costs is covered by the budget of the region or municipality. This is justified because transport performs an important social function and has an impact on the city’s economy: it provides access to jobs, educational and medical institutions, reduces the burden on the road network and reduces environmental costs. In suburban and intercity services, the share of the carrier’s own income is usually higher, and the tariff policy includes a system of benefits, discounts, tickets for several trips, season tickets and dynamic models for online sales. In conditions of high operating costs and limited purchasing power of the population, transparency of tariffs, clarity of rules and predictability for the passenger are important.
Contractual service models make it possible to link economic incentives with the quality of work. The municipality or region enters into an agreement with the carrier, which sets out the mandatory indicators: the regularity of flights, the observance of intervals, accessibility for passengers with limited mobility, cleanliness of the cabin, compliance with schedules, informing passengers. The fulfillment of the indicators is confirmed by navigation and ticket system data, and deviations lead to lower fees or fines. This model makes quality measurable and financing predictable for the carrier. In some cases, a “gross model” is used, in which the customer receives revenue from the tariff, and the carrier receives payment for the amount of work performed – this allows flexible schedule changes without risk to the carrier. An alternative is the “net model”, where the carrier receives tariff revenues and bears the risks of demand; this scheme is used where passenger traffic is stable and high.
