Unlocking digital and social value in public transit: A discrete choice experiment with urban passengers

Abstract

Urbanization in rapidly growing cities has intensified demand for sustainable public transport solutions. Despite their potential, traditional and electric bus services remain underutilized due to limited attractiveness. The case study is Hanoi (Vietnam), where bus use is constrained by reliability and access challenges and strong competition from private motorbikes and ride-hailing. This study investigates passengers’ preferences and their willingness to pay (WTP) for key service improvements in the bus system. A Discrete Choice Experiment (DCE) was conducted to evaluate six attributes: ride experience, schedule punctuality, bus app usability, emission reduction, walking distance to bus stops, and fare. Based on survey data from 366 respondents, the study estimates WTP and examines how socio-demographic factors influence user choices. The findings indicate that ride safety and punctuality are most valued, followed by environmental friendliness and the usability of mobile applications. Notably, passengers with children and those expressing environmental concern show higher WTP, whereas low-income and infrequent users are more price sensitive. These results offer practical implications for fare policies, service design, and targeted communication strategies to enhance public transport adoption. The study contributes to the limited literature on bus service valuation in developing countries and supports evidence-based planning through DCE methodology.