To some extent, it depends on the data provider.

I suspect that TeleAtlas produce estimates based on the time that it 
actually took their survey vehicles to drive along the road, and that 
Navteq create estimates based on the general features of the road, such 
as width and speed limits.

In all cases, the estimate returned by the API doesn't vary as the 
traffic load varies. There is currently no facility for telling the API 
what time of day or under what traffic level you are planning to drive 
the route.

-- 
Mike Williams
http://econym.org.uk/gmap


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