Abstract
Bangkok, Thailand and Manila, Philippines each have three urban rail systems. Focusing on two urban rail systems in Bangkok and Manila, Bangkok Mass Transit System (BTS) and Metro Rail Transit (MRT3), the transit fare for the BTS is high and wide-ranging compared to the subsidized transit fare in the MRT3. Using the concept of price elasticity we demonstrated the sensitivity of urban rail passengers when a change in transit fare is implemented. Fare elasticity values obtained were -0.46 and -0.06 for the BTS and the MRT3, respectively, implying that the responsiveness of BTS users was much higher compared to the MRT3 when a price change is implemented. A modified Price Sensitivity Measurement (PSM), Kishi's Logit PSM (KLP), was used to determine reasonable price range for transit fare in both cities. Results indicated that the MRT3 transit fare could be increased, while the BTS system already had a reasonable fare setting.
