Development of variable toll pricing strategy to manage traffic congestion at Metro Manila Skyway

• Main Authors: Flores, Queen Jean, Realon, Bien Carlo, Bacudio, Lindley R., Esmeria, Giselle Joy
• Format: text
• Published: Animo Repository 2018
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/706
• Institution: De La Salle University

© IEOM Society International. The rapid growth of real estate development in the Southern Luzon (Philippines) has fundamentally affected the traffic condition at Metro Manila Skyway. The lack of efficient public transport system from the South has led many residents to acquire their own vehicles to conveniently transport them from home to their respective destinations. This has contributed to the significant increase of both public and private vehicles traveling from South to the metropolis. Despite the government efforts to build alternative infrastructures and regulations to minimize the traffic condition, the traffic becomes even worse in recent years. This study has been conducted to develop an alternative solution to alleviate traffic condition at Metro Manila Skyway that connects South Luzon to Manila. Variable pricing strategy has been applied to different industries in the Philippines, especially in regulating oil prices but has not been applied to address the worsening traffic condition in the country. This paper aims to simulate variable toll pricing strategies to reduce traffic congestion in Metro Manila Skyway (MMS) and determine the optimal revenue generated from the best price strategy. In addition, the study seeks to find out the public acceptability of the best pricing strategy for Metro Manila Skyway. The results of the study have shown that 44% of the respondents chose to use the Elevated road during peak hours with heavy traffic despite paying a higher toll rate, while 42% chose to leave earlier or later the peak hours at a lower toll rate. The rest of the respondents chose to use At-Grade road during rush hours or Elevated road when traffic is moderate with both normal toll rates.