Transit Pricing Programs

Value Pricing for Transportation in the Washington Region

June 4, 2003

Richard F. StevensWashington Metropolitan Area Transit Authority

Transit Pricing Programs

Why employ pricing programs?

Charge an appropriate fee for the services provided – market based pricing

Influence the demand for services – demand management

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Transit Pricing Programs

Market Based Pricing Strategies

Reflect demand and cost of service Peak /off-peak fare differentials Parking fees and rates Express bus fares

Influence mode access to Metrorail Feeder bus pricing

Promote trip chaining Bus and rail transfer policies

Grow the market Bus fare buydowns Transit benefit programs

2

Transit Pricing Programs

Influence mode access to Metrorail

Walking and bus are predominate modes in urban areas

Auto (park & ride and kiss & rider) and feeder bus predominate mode in suburbs

Parking capacity and bus headways affect suburban mode of arrival

Suburban Station AM Peak Period Boardings and Bus Service

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

4:30 -5:00

5:00 -5:30

5:30 -6:00

6:00 -6:30

6:30 -7:00

7:00 -7:30

7:30 -8:00

8:00 -8:30

8:30 -9:00

9:00 -9:30

9:30 -10:00

10:00 -10:30

Boa

rdin

gs

0

50

100

150

200

250

300

350

# of

Bus

es P

er H

alf-

Hou

r

Bus Service Boardings

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Transit Pricing Programs

Demand Management Strategies

Influence temporal patterns of demand Shift demand to meet supply

Influence the mode of access to Metrorail Relationship to feeder bus fares to parking fees Level of service

Encourage other regional strategies Alternative work schedules Parking policies

4

Transit Pricing Programs

Influence temporal demand patterns

Shift demand to shoulders of the peak where excess capacity exists

Use peak-of-the-peak pricing as the motivator

Reduce the length of peak periods

Did not implement: Large fare differential required Complicates fare structure

0

50

100

150

200

250

300

350

400

6:00 AM

-6:30 A

M

6:30 AM

-7:00 A

M

7:00 AM

-7:30 A

M

7:30 AM

-8:00 A

M

8:00 AM

-8:30 A

M

8:30 AM

-9:00 A

M

9:00 AM

-9:30 A

M

9:30 AM

-10:00 A

M

Sup

ply

in C

ars

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Rid

ersh

ip

Excess Supply Ridership

Excess Supply

Excess Demand

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Transit Pricing Programs

Summary

Many pricing strategies available in the transit planners toolbox

Pricing strategies can be successful Pricing strategies may not be stand alone actions

Service improvements Parking policies Congestion mitigation

Market impacts must be assessed Consumer Political capital

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