Dynamic information system that provides travelers with timely and useful information on transportation services and surrounding socio-economic activities may increase traveler's awareness of available activity and transit service. This study analyzes travelers' decisions on how to allocate time in the trip-planning process based on traveler utility-maximization in microeconomic theory subject to both time and cost constraints. The study uses a flexible translog formulation of indirect utility, which is commonly used in literature and has estimation and functional flexibility. The travelers' indirect utility function formulated in the study decides the optimal travel and activity decisions under different scenarios. Based on the formulated indirect utility specification, the study further applies Roy's identity to produce a system of demand function, which examines the relationships between travelers' travel and activity decision and the demand for participating in surrounding activity induced by dynamic information. The induced activity time ratio is defined as the ratio between travelers' induced activity participating time and available time between arrival and departure time of the terminal. The study introduces the concept of induced activity time ratio to investigate the relationship between induced demand for participating in terminal surrounding activities and transit waiting time. Finally, the study uses a numerical example to demonstrate the application and feasibility of the developed model. The model results show that there exist significant relationships among the induced activity time ratio, cost and time constraints, and travel behaviors. The results also show how travelers decide to use transit waiting time for additional activity participation induced by dynamic information provision under different situations. The study provides a basis for understanding travelers’ travel and activity decisions and time allocation to additional induced activity due to dynamic information provision.