Providing a sustainable public transport service for areas with several small villages or hamlets is a challenge for the whole of Europe. To serve ‘dead-end villages’, vehicles must make a to-and-fro detour to each village, which requires considerable performance from the operator, and the service must also be ordered from the responsible bodies. The number of inhabitants in rural areas is constantly decreasing, and the remaining residents are aging. This process is due to the fact that economically active people in the country tend to move into towns offering jobs and public institutions instead of commuting to work. The performance requirement of serving low transport demand areas like ‘dead-end villages’ is high, while the number of passengers is very low. Furthermore, passengers are economically less active, and thus their transport must largely be subsidized. The present study hypothesizes that replacing traditional public transport with demand responsive transport (DRT) can make the service of rural areas with less public transport service and low demand sustainable. To prove this hypothesis, a generally applicable, innovative method of analysis based on performance–allocation is introduced, and the application of this method is illustrated by a case study conducted in northeastern Hungary. The number of ‘dead-end villages’ is high in the surveyed area; consequently, the results are impressive. The mathematical model applied here uses several parameters (e.g., population, traffic surveys, trip distance, operational costs), thus the analysis is highly complex.

Ongoing competition between bus and railway systems in European (especially in the middle, south and east part) regional passenger transport is a current problem. Long term sustainability and efficiency in passenger transport requires a balanced transport policy. These subsectors need to be complement each other, not compete. The parallel bus and railway links can result in a competition. This research explores solutions to this issue for long term environmental and economic sustainability optimization. Some of the important factors include the number of inhabitants to be served, public transport availability, and efficiency in time of travel for vehicles and passengers. To ensure long term sustainability of the presented methodology, the effect of interventions was analyzed. The study compares Finland and Hungary in terms of the competition regional railway and bus links.