This paper studies the assignment of long-distance passenger traffic on a highway corridor network. First, we propose a traditional model for the long-distance traffic assignment considering interactions with local commuter traffic. It addresses the effect of local networks on highway corridors. An iterative algorithm is developed to solve for the exact solution. Then, to address the potential computational issues that arise therein, a decomposition method is proposed by introducing a new concept of corridor elasticity. An assignment procedure for long-distance passenger traffic is developed accordingly. Numerical tests show that the proposed decomposition method makes significant improvements in computational performance at a small loss of optimality. This decomposition method well approximates the exact assignment from the traditional formulation, especially when the highway corridors are near-saturation. The proposed decomposition method appears practical for application.