Rural on-demand public transport models under flat fare policy

In May 2023, Germany introduced the “Deutschlandticket”, offering users country-wide access to public transport for 49 euros per month. While this policy benefits infrastructure-rich urban areas, its impact on rural regions remains questionable. This study addresses this gap and analyzes the “Deutschlandticket” impact with real travel data from an on-demand public transport provider in rural areas. Two service models are examined: a feeder-service with fixed slots to urban areas and a free-floating service for rural mobility. The results show that the fare reform is associated with greater and more regular travel in the feeder-service, while demand in the free-floating service remained largely stable. These findings suggest that fare policy effects vary across service models and that public transport providers should account for service design when operating under a given fare policy.