The transit operational efficiency is evaluated based on frequency, passenger load, and total operational hours. Current measurement definitions for these variables typically use one transit parameter at a time, lacking comprehensive macro-level assessment tools. Frequency and hours of operation represent the supply side, while passenger load reflects demand side of the system. This study aims to bridge the measurement gap for policymakers and practitioners by using the Level of Service (LOS) framework. By comparing seat supply per hour with actual demand, the study identifies the absolute gap between supply and demand. Additionally, using passenger load variation instead of simple passenger load values provides more realistic view of resource overuse or underuse. The study methodology combines the Transit Capacity and Quality of Service Manual (TCQSM)’s LOS measurement guidelines with the proposed absolute difference and passenger load variation-based LOS measurements. The study examines 13 routes in Surat, India, passing through Rander TAZ. The frequency and passenger load-based measurement shows a minimum LOS-B for all routes. However, including the absolute difference and passenger load variation reveals a minimum of LOS-D, with some routes at LOS-E/F. The comprehensive LOS assessment shows that 6 out of 13 routes fall below LOS-B, prioritizing them for future policy interventions through macro-level assessment. With a stagnant ridership of 0.25 million per day over past 4 years, resulting in 2.5% transit mode share and lower LOS on half of the selected routes, the primary cause of low usage is evident. Proposed framework offers more accurate representation of system operations.