OUT OF POCKET COST Out of pocket cost includes taxes, ravel tickets, tolling fees, etc. It is the part of cost incurs directly to the user during one’s travel. The cost is usually on a one-trip basis. INDIRECT COST Indirect cost can be partly hidden, such as gasoline, car insurance, mileage cost, maintenance etc. The cost is usually paid collectively, and not during the trip. As a result, the traveler may become less sensitive to it, and perceive partially. BUNDLE BETWEEN AGENCIES Bundle between agencies usually occurs as discount. For example, a traveler may get a free shuttle bus ticket when he/she books from a certain airline. Furthermore, bundle may imply coordination between agencies
From the user’s perspective, the perceived monetary cost is the one that matters and appears in the utility function. However, from the supplier’s perspective, all the costs collected are weighted equally enters the revenue.. 3.3.3 Safety Besides its impact on perceived time by travelers, the safety factor may have other impacts on the user’s decision making before planning the travel. For example, while the travel time is perceived during the trip, before deciding which alternative to take, the user may evaluate the issue of safety basing on his/her knowledge, probably information from newspapers. As a result, safety has the property of “the weakest link”, as when it comes to a multimodal transportation alternative, no matter how the safety factors of the other modes are, the safety factor of the entire trip is only determined by the worst link. The evaluation of safety is perceived as the risk taken due to insecurity. However, the risk has a wide range, from monetary cost to fatal risk, and therefore quite difficult to translate onto the same scale. Besides, user’s perception to risk cannot be assumed to be linear. So the evaluation of safety is a problem that is not easily quantified. We will discuss about this issue later in the analytical framework. 3.3.4 Reliability No transportation mode can be perfectly reliable. In a multimodal transportation system, the arrival time of one link is the starting time (which is decided by previous modes) plus the travel time (which is generally independent of previous modes). Both of the elements would not be accurate, but usually follows some probabilistic distribution. The reliability is the possibility that the arrival time falls into a certain confidence interval. Existing work on the reliability issue usually look from the perspective of willingness to pay, which studies the reviewed preference between reliability and other travel disutility (usually time or monetary cost). The assessment of reliability can be achieved from historical data of each mode within the alternative. Trying to achieve more insights of the issue, in this report, we considered the reliability problem as the expected penalty from delay.