Abstract: Rapid transit (RT) systems are becoming increasingly attractive in the developing world as they improve transportation and mobility conditions in urban areas, reduce motorization impacts and offer high quality, yet cost effective services to travelers. Light rail transit (LRT) and bus rapid transit (BRT) are RT systems that combine high capacity with relatively low investment costs, and as such, they are preferred in developing countries over regular metro systems. This paper investigates traveler preferences over alternative, planned rapid transit options for the city of Multan, Pakistan. The analysis is based on a household information survey with over 2300 questionnaires completed via personal interviews. Intention to pay for improved PT services and choice between LRT and BRT systems are investigated, using appropriate econometric models. Findings of this study can assist in better understanding the factors and their effect on choice between BRT and LRT in developing countries. Results show that potential travelers, who prefer LRT are willing to pay more for better public transport services. On the other hand, commuters and elders express a taste towards BRT implementation. Based on model outputs policy makers can develop targeted marketing policies in order to promote BRT/LRT implementation and attract candidate travelers from different groups, improving the possibility that users would support a BRT or LRT project.