Mode choice model for public transport, which integrates structural equation model (SEM) and discrete choice model (DCM) with categorized latent variables, was presented in this paper. Apart from identifying those important latent variables that affect mode choice for public transport, the objective of this study was also to develop an improved disaggregative model that better explains travel behavior of those decision-makers in choosing public transport. After extensive observations, selective latent variable sets which consist of latent variable components were chosen together with explicit variables in formulating the utility functions. Data collected in Chengdu city, China, were used to calibrate and validate the model. Results showed that the impact of fare on mode choice of public transport escalated in the SEM-DCM integrated model compared with the traditional logit model. The goodness of fit for the integrated model with latent variable sets is 0.201 higher than that of the traditional logit model, which proves that latent variables have an obvious impact on mode choice behavior, and the SEM-DCM integrated model has higher accuracy and stronger explanatory ability. The results are especially helpful for public transport operators to achieve higher mode share split by improving the service quality of public transport in terms of providing more convenience and better service environment for public transport users.