When applying dynamic route guidance to improve the network performance, it is important to balance the interests of the road authorities and the road users. In this paper we will illustrate how bounded rationality and indifference bands can be taken into account in dynamic route guidance to improve the network performance while respecting the interests of road users. The paper elaborates on empirical findings reported in literature to propose a suitable interpretation and utilization of the indifference bands in a control approach. By means of a service level-oriented route guidance control approach we evaluated the potential gain in network performance of different absolute indifference bands. Results from a simulation test case show a reduction in total travel time of 5% compared to user equilibrium, in case of an indifference band of 4 minutes for a trip of approximately 22 minutes. The improvement in network performance increases with an increasing indifferent band, up to 14% in case of an indifference band of 10 minutes.