Market segmentation and willingness to pay for public transport annual passes among older adults: insights from Genoa, Italy

Authors

Abraham Leung
Claudia Burlando
Tiziano Pavanini

Document Type

Journal Article

Publication Date

2025

Subject Area

place - europe, place - urban, planning - surveys, planning - service improvement, policy - equity, ridership - old people, ridership - perceptions, ridership - modelling, ridership - behaviour, economics - willingness to pay, economics - pricing

Keywords

Ageing population, Older adults, Willingness to pay, WTP, Segmentation, Public transport

Abstract

A survey of older adults aged 65 and over (n = 247) was conducted in Genoa, often described as ‘the oldest city in the oldest country’ in Europe. This paper presents two scenarios exploring older people's willingness to pay (WTP) for annual tickets for local public transport (LPT) and examines the impact of factors such as cost, time, and comfort. These insights could help address the challenges of travel in ageing societies. A segmentation analysis based on the mean values of the two WTP scenarios (status quo and improved services) was conducted, followed by linear regression modelling to understand how older adults' socio-demographic traits, perceptions, and travel behaviour affect their WTP.

Our findings suggest that the pricing of the annual pass (€345 at the time of survey) exceeds the WTP indicated by respondents. The mean WTP for the status quo level of service (€221.36) was much lower than the WTP if service levels were improved (€304.07). Women were found to be more likely to use LPT but also tended to live alone and have lower incomes. Off-peak hours, particularly in the afternoon, were also associated with a higher WTP. This research is important in the context of Europe's ageing population, highlighting the need for more inclusive transport options for older adults. Public transport authorities (PTAs) should explore more tailored approaches to pricing and service provision. It is imperative to balance the competing goals of cost recovery, equity, and service attractiveness to encourage older people's uptake of LPT services, while maintaining accessibility and wellbeing.

Rights

Permission to publish the abstract has been given by Elsevier, copyright remains with them.

Comments

Research in Transportation Business & Management Home Page:

http://www.sciencedirect.com/science/journal/22105395

Recommended Citation

Leung, A., Burlando, C., & Pavanini, T. (2025). Market segmentation and willingness to pay for public transport annual passes among older adults: insights from Genoa, Italy. Research in Transportation Business & Management, 58, 101243.