Table 2 Parameter values used in the calculation example with comments

Eq. 4.1

X₀

Average number of passengers per year travelling to/from place B before an RS was implemented. The number is representative of a typical Norwegian fast craft service.

Eq. 4.1

X₁

Average number of passengers travelling to/from place B after an RS is implemented. This number can be calculated by referring to the pre-booking procedures, experiences from services that previously have converted calls from an FS to an RS, or by simply asking inhabitants at the actual place about their expected change in travel behaviour.

Figure 2

P₀

The ticket price for those travelling to/from place B can be found from the fare tariff. An average travel distance on fast craft services in Norway is approximately 30 km. In 2019, the fare for an adult for this distance was approximately €15.

Table 2

\( \overline{P} \)

Ticket price for those travelling between A and C. Because we assume that the distance A–C is longer than A–B and B–C, we presume \( \overline{P} \) > P₀.

Eq. 4.1

W_B

The welfare change for the inhabitants at place B when place B receives an RS instead of an FS. The loss can be calculated by, e.g. a survey among the inhabitants on their willingness to pay for not losing the FS.

Figure 3

Y₀

Average number of passengers per year travelling between A and C when B has an FS.

Figure 3

Y₁

Average number of passengers per year travelling between A and C after an RS is implemented at place B. This number can be calculated by estimating expected reduction in generalised travel costs per passenger and subsequently calculating the increase in the number of trips by using a generalised cost elasticity.

Eq. 4.2

∆T

The time savings for passengers between A and C by omitting a call at place B. These savings can be calculated by the service provider based on the deviation from the main fairway and for a representative terminal time at the call.

Eq. 4.3

k₀

Average time value per hour for fast craft passengers can be derived from a travel survey on the current route. Notably, €8 is a proxy for the average time value per passenger used in the cost–benefit analysis in Norway in 2019.

Eq. 4.4

α

Proportion of times people travelled to/from place B before an RS was implemented. The value of α can be found from historical data on the travel activity.

Table 2

N

Annual number of trips offered between A and C. This number is found in the time table for the service in question. Our example is based on a service with a daily round trip.

Table 2

∆C

Cost savings for the service provider per trip by not calling place B. It is primarily reduced fuel costs and quay/terminal costs. The value used is related to a call that increases the travel time between A and C by 0.25 h.

Table 2

W_TA

This number can be calculated based on the contract form. We assume that the contract says that 50% of the cost reduction shall go to the service operator (Table 3).