Employer-based travel demand management program: Employer's choice and effectiveness

- Employers' travel demand management program (TDM) participation is analyzed.
- Larger employers have more options to implement TDM programs.
- Campaign-type TDM programs are generally preferred by most employers.
- Built environment favorable to alternative modes positively influences TDM.

The impact and effectiveness of employers' travel demand management (TDM) programs have often been investigated, but there is little research on employers' preference of TDM programs and the factors which influence their choices. This study aims to examine employers' choices of TDM program and the effectiveness based on a Seoul TDM database. Factors affecting employers' decisions on whether to participate in TDM programs and the degree of participation are identified based on regression models: binary logistic, ordinary least squares and Tobit regressions. In addition, an employers' TDM program choice model is developed using the approach of the multiple discrete continuous extreme value (MDCEV) model, as an employer can participate in multiple TDM programs, and their individual effectiveness is represented by continuous values of traffic impact fee discount rates. The developed models consistently indicate that facilities' characteristics such as owner type and facility size, along with locational characteristics (e.g., land use and accessibility to transit) are important in choosing a TDM program. In particular, the MDCEV model shows that employers' preferences for TDM programs vary significantly by employer and characteristics of the program.