amobilife Economics

Modelling prices and costs for demand responsive transportation

Economic aspects related to delivering mobility services are normative for the capacity to offer such services. At the same time, the price of a journey is one of the key choice criteria for mobility modes.

For the beginning and the end of journeys, this issue is particularly challenging.

Mobility offers as well as incentives to use public transport on the first and last mile compete with the private car, Therefore, improvements of connections and mobility access have to be particularly demand responsive and economically attractive.

Both aspects have to be negotiated with the interest of mobility operators to provide services and connections most economically and effectively. This is even more demanding solutions for the growing number of services offered by several operators and for journeys involving more than one mobility modes.

Under the theme a mobilfy economy, the partnership will develop and implement new approaches to modelling costs and to mobility pricing to meet this challenge.

The partners GMPTE (Greater Manchester, UK ), the University of Aberdeen (UK), TraffiQ (Frankfurt/M, DE), the City of Genk (BE), NiO (Offenbach) and the City of Pirmasens (both DE) will provide solutions to the following issues: 

  • What are the key cost parameters of demand responsive transportation ?
  • What are the real costs of multi-model journeys ?
  • How multi-modal journeys should be priced ?
  • How inter-operator cost-modelling improves the effectiveness services ?

ICMA Amobilife Price and Cost Modelling

Price and Cost Modelling for amobilife in North West Europe

One of they key transnational results of the ICMA Amobilife project is a Generic Cost and Price Modelling Tool. This tool allows transport operators and commissioners to model the cost structures of multi-modal mobility services, even if they are provided by different service operators. The tool has been developed on behalf of ICMA consortium by AECOM, one of the largest and most respected providers of professional technical and management support services in the world.

The tool enables its users to develop a detailed understanding of the key cost parameters of DRT transport from both an end-user perspective and a provider perspective prior to a service being implemented to allow the users of the model to ascertain the level of potential impacts that the scheme will have on costs and revenue streams.  In doing this, it is hoped that more cost-effective DRT schemes can be implemented without compromising on the quality of service and social inclusion benefits DRT provides.    


Transport  comissioners and opreators are welcome to  download and apply this tool for test purposes. However, the commercial use of this EU funded product is strongly prohibited.  Users of this tool  commit themselves

 1. to report testing experiences to the lead partner of the ICMA project, Stuart Murray at GMPTE

 2. to refer to ICMA Amobilife/ AECOM as the authors of this tool and to the European INTERREG IVB NWE  funding scheme.

Go to download area to find out more

Follow this link to download the Report on the application if the ICMA Cost Model by SPT

For Further Reading on Price and Cost Modelling

Tender prices in local bus transport in Germany - an application of alternative regression techniques

(follow the link to download the paper from the Karlsruhe Institute for Techology)

Financing Public Transport

(follow the link to download the study from the Friedrich-Ebert Foundation)


amobilife themes

In the jointly developed Transnational Competence Center the European partnership provides services and solutions covering the four mobilife themes.