Evaluating Alternative Operations Strategies to Improve Travel Time ...

SHRP 2 L11: Final Appendices
particularly during the morning commuting period, influences the value of time. The
recommended values that are shown in Table B.8 are based on the strongest relationships
empirically demonstrated in the literature. They largely follow the current U.S. DOT guidance.
Many regional agencies or state DOTs may have their own values of time that reflect the local
wage rates.
Table B.8 - Passenger Traveler Value of Time as a Percentage of Average Wage Rate
Trip Purpose/
Time of Day
Value of Time
(as a percentage of wage rate)
Personal Travel
Range of Values for Sensitivity
Analysis
A.M. Peak Period (Morning
Commute)
75% 50%-90%
P.M. Peak Period 60% 40%-70%
Leisure/Other Trip Purpose 50% 30%-60%
Intercity Travel 70% 60%-90%
Business Travel 100% 80%-120%
Using the same hourly rates as in Table B.8 for calculating the hourly value of time from the U.S.
DOT Guidance, the dollar value of time per person-hour is presented in Table B.9. The dollar
value of time per person-hour can be converted to value per vehicle by using average vehicle
occupancy assumptions to scale the dollar value per person-hour.
Table B.9 - Passenger Traveler Value of Time
Trip Purpose/
Time of Day
Value of Time
Range of Values for Sensitivity
(dollars per person-hour)
Analysis
Personal Travel
$18.80 $12.60 - $22.60
A.M. Peak Period (Morning
Commute)
P.M. Peak Period $15.00 $10.00 - $17.60
Leisure/Other Trip Purpose $12.60 $7.50 - $15.10
Intercity Travel $17.60 $15.10 - $22.60
Business Travel $29.20 $23.40 - $35.00
Note: Business travel hourly rate based on wage and compensation, other trip purposes based on National Median Household
Income following U.S. DOT Guidance.
The freight mover value of time, shown in Table B.10, should be based on one-hundred percent of
the truck-driver wage and benefits, plus the hourly inventory costs. Hourly inventory costs can be
calculated as the value of commodities shipped in a corridor divided by the hourly discount rate.
Freight Mover Group
Light Truck
(Single Unit or 6-Tire Truck)
Medium Trucks
(3-4 Axle Truck)
Heavy Trucks
(4-Axle and 5+Axle Combination)
Table B.10 - Freight Mover Value of Time
Value of Time
(Dollars per hour)
Freight Movers
Range of Values for Sensitivity
Analysis
$30 $30 - $55
$50 $40 - $75
$60 $40 - $80
DETERMINING THE ECONOMIC BENEFITS OF IMPROVING TRAVEL-TIME RELIABILITY Page B-27