A simple makeover can increase bus ridership: The story of Tayo bus. (October 2020)

• Record Type: Journal Article
• Authors: Hwang, Hyeonjun; Lee, Myoung-jae
• Is Part Of: Transport policy. Volume 97(2020)
• Page Start: 103
• Page End: 112
• Publication Date: 2020-10
• Subjects: Public transportation -- Bus ridership -- Tayo bus -- Difference in differences; Transportation and state -- Periodicals; Transportation -- Rates -- Periodicals; 388
• DOI: 10.1016/j.tranpol.2020.07.005
• Languages: English
• ISSNs: 0967-070X

Abstract

Abstract: We show that simply decorating buses with famous animation characters can substantially increase the bus ridership. In April 2014, the Metropolitan Government of Seoul decorated four buses with popular animation characters. One month later, the Seoul Government increased the number of decorated buses to 100. As this "decoration" policy/treatment affected only some regions in Seoul, we estimate the effects of the policy using 'difference in differences' that is the difference between the before–after ridership difference of the affected regions and that of the unaffected regions. We find a statistically significant increase of about 6 riders per day at each bus stop as the number of decorated bus routes at the bus stop increases by one in May 2014. This number may sound small, but it is meaningful because it costs only about $1000 per bus to implement the policy, and the bus fare revenue increase in May 2014 alone is many times greater than the total makeover expense. Highlights: Seoul decorated some buses with famous animation characters in 2014. Those Tayo ("let us ride") buses ran only in some regions in Seoul. So difference-in-differences was applied to find the effects on bus ridership. Six more riders per day per bus stop and 6 times more revenues due to Tayo bus. The Tayo bus policy was highly cost-effective in increasing bus ridership.