Study On Pricing Method Of Rural Passenger Transportation Route Baed On Urban-rural Public Traffic Integration

Because of the unbalanced economic development between urban and rural for a long time, there are some problems such as the difference of passenger transportation route between urban and rural, the slow development of rural passenger transportation and the difficulty to connect urban-rural public traffic. It is a necessary method to implement the urban-rural passenger transportation integration when we solve these problems. The urban-rural passenger transportation integration is an important part of the urban-rural coordinated development. It has major effect in improving the condition of urban-rural passenger and raising the travel service quality. It also can solve the urban-rural passenger transportation contradictions effectively which is always happened in the connection between urban and rural and satisfy the need of public transportation around the city which will become more and more numerous. But how to set the rural passenger transport routes is a serous problem when we implement the urban-rural passenger transportation integration. As we know, the character of rural passenger transport route is that the price is often higher than the pubic transportation but the service quality is worse. It does not have the public welfare like public transportation and the allowance from the government. So it will transform the traffic by the low price, if we add the buses in the same route and retain the current routes. It will bring some economic loss to these routes'owner and a series of social problems. So, if we want to implement the urban-rural passenger transportation integration effectively, there are some useful methods such as changing the business mode, finding more support from government, doing some reform in public passenger routes and seeking a balance in the benefit of owner and society.How to define the price of the passenger transportation routes after it become public is the key to find that balance. This paper studies this issue in depth by reviewing literature and summarizing the current status of urban-rural integration and price and fare system of bus ticket. The development of Chinese public passenger transportation such as profitable vehicles, routes and price was analyzed. Doing some research in current status of rural passenger transportation route development from the infrastructure construction and the operation of rural passenger transportation and summarize problems in it. The differences between urban and rural passenger transportation development was analyzed and the background of the proposing of urban-rural passenger transportation integration was described. The difference of public rural passenger transportation before and after the implementation was explained as the sample of Linyi and Quanzhou which is based on the Chinese status. Price theory and Pareto Optimality theory are described in detail. The meaning and application of Cost-plus pricing, Marginal cost pricing and Romsey prcing were expounded. Then, using this conclusion, new price theory and pareto optimality theory as basis and guide to find the balance on maximizing the owner's benefit and minimizing the paying of passenger. It gives a reference table on defining a better fare system by considering the relationship between different fare systems and the distribution of passengers by distance. After study the passenger routes'profit and nonprofit public transportation, this paper propose the method to calculate the amount of government allowance by using the Ramsey pricing model as basis and protecting basic earnings as target. Considering the limit of financial allowance, possible adjustments of ticket price was described and further calculations and notes with examples was carried out in the end. The conclusion of this paper can be reference when it determines the price and fare system in the development of urban-rural passenger transportation integration in China.