Travellers' willingness to pay and perceived value of time in ride-sharing: an experiment on China. Issue 23 (1st December 2020)

• Record Type: Journal Article
• Authors: Chen, Jamie M.; de Groote, Jesper; Petrick, James F.; Lu, Tracy; Nijkamp, Peter
• Is Part Of: Current issues in tourism. Volume 23:Issue 23(2020)
• Page Start: 2972
• Page End: 2985
• Publication Date: 2020-12-01
• Subjects: Ride-sharing -- prospect theory -- choice experiment -- willingness to pay -- value of time; Tourism -- Social aspects -- Periodicals; Tourism -- Environmental aspects -- Periodicals; Travel -- Periodicals; 338.479105
• DOI: 10.1080/13683500.2020.1779190
• Languages: English
• ISSNs: 1368-3500

Abstract

ABSTRACT: Rapid development of the ride-sharing economy has led to a rising need to better understand travellers' decision making regarding their travel time and cost. The present study conducted a travel choice experiment using smartphone applications, based on data collected from 532 respondents and 2128 stated-preference surveys in China. Based on prospect theory, the experiment utilized a coupon reward policy to analyze how much ride-sharing platforms might influence travellers' choices in both work and leisure contexts. The results of an ordered logit model revealed that older residents were likely to pay more to reduce waiting time. It was further found that tourists had significantly higher probabilities to take expensive alternatives with shorter queueing time. The tourists' value of time was higher than that of residents, while the reward policy employed was found to increase the residents' value of time. Specific theoretical and managerial implications of the findings are discussed. Highlights It conducted stated-preference surveys regarding travellers' ride-sharing choices in China The choice experiment employed four scenarios: rewarded residents, non-rewarded residents, rewarded tourists, and non-rewarded tourists The logit model revealed older residents were likely to pay more to reduce waiting time The tourists' value of time was higher than that of residents The reward policy increased the residents' value of time, but not that of the tourists