Valuation of travel time reliability: a review of current practice

This report introduces key methodologies and the associated challenges with regards to defining and measuring travel time reliability, in particular, for improving the valuation of travel time in project appraisal by Australian jurisdictions. The numerous studies undertaken in the past internationally and in Australia have been based on existing theories, concepts and definitions; and in existing models and estimation methodology of travel time reliability/ variability. The consensus at the international meeting on ‘value of travel time reliability and cost-benefit analysis’ in Vancouver (November 2009) was that current methodologies are not the most appropriate for analysing travel time reliability/variability; however, they should be used until better methods are developed. The issues and challenges reflected in the findings of this report constitute useful input and a starting point for the work that may be required in Australia to improve on the way of valuing travel time and the importance of the travel time reliability concept. This is an important area of research as travel time savings have tended to dominate economic appraisals of road projects. Estimates of these savings affect decisions about the allocation of available funds between rural and urban roads and between new construction and rehabilitation/ maintenance of existing road networks.