TRANSIT FARE PREPAYMENT: A GUIDE FOR TRANSIT MANAGERS. EXECUTIVE SUMMARY

Transit fare prepayment programs have grown rapidly. They represent methods that substitute for cash at the time the trip is taken and include passes, commuter tickets, permits and tokens. Four primary benefits have been documented. Three benefit the transit operating agency--savings in coin handling, savings in operating costs by speeding passenger loading, and increased revenue from interest paid on advanced cash. Passengers are benefitted by increased convenience. Minor benefits include increased off-peak riders, targeted markets with appropriate pricing, and improved image of the operating agency. The benefits of prepayment are generally found to outweight the costs, which are found to vary with the size of the transit agency. Marketing of prepayment involves identification of the target markets, weighting the advantages and disadvantages of alternate plans, and evaluation of the costs of different plans. Pricing of prepayment plans has sometimes overemphasized discounts; other factors must be considered.

• Corporate Authors:

  OFEGRO, Incorporated

  3612 Twelfth Street, NE
  Washington, DC  United States  20017

  Urban Mass Transportation Administration

  Office of Technical Assistance & Safety, 400 7th Street, SW
  Washington, DC  United States  20590
• Publication Date: 0

Media Info

• Pagination: 6 p.

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Fares; Marketing; Off peak periods; Operating costs; Pricing; Tickets; Tokens
• Uncontrolled Terms: Prepayment
• Old TRIS Terms: Off-peak; Passes
• Subject Areas: Finance; Public Transportation;

Filing Info

• Accession Number: 00387696
• Record Type: Publication
• Files: TRIS, USDOT
• Created Date: Aug 30 1984 12:00AM