ALAMEDA-CONTRA COSTA TRANSIT DISTRICT FARE ALTERNATIVES FOR THE EXISTING SYSTEM

THERE ARE THREE PRINCIPAL METHODS WHICH COULD BE UTILIZED TO INCREASE THE PASSENGER REVENUES OF ALAMEDA-CONTRA COSTA TRANSIT SYSTEM: (1) AN INCREASE IN THE PRESENT MINIMUM ADULT FARE FROM $.20 TO SOME HIGHER LEVEL, (2) INSTITUTION OF A TRANSFER CHARGE IN PLACE OF THE PRESENT FREE TRANSFER PRIVILEGE, AND (3) CHANGES IN THE ZONING OF THE SYSTEM DESIGNED TO CREATE ADDITIONAL REVENUES. ON THE BASIS OF TRANSIT FARES THROUGHOUT THE COUNTRY, THERE IS MORE THAN ADEQUATE PRECEDENT FOR A MINIMUM FARE LEVEL ABOVE THE $.20 NOW CHARGED BY AC TRANSIT. OF THE 29 LARGEST TRANSIT SYSTEMS IN THE NATION, 23 HAVE MINIMUM ADULT RATES ABOVE $.20. THE TOTAL AC TRANSIT REVENUE DERIVED FROM ADULT CASH AND TOKEN FARE IN THE 12 MONTHS ENDED NOVEMBER 30,1966, AMOUNTED TO $6,137,898. IN ORDER TO MEASURE THE POTENTIAL OF AN INCREASE IN TOKEN RATE, IT CAN BE CALCUALTED THAT IF THE ADULT PASSENGERS HAD ALL PAID THE $.25 CASH RATE IN THIS PARTICULAR 12 MONTH PERIOD, THE REVENUE WOULD HAVE BEEN $7,060,342. THUS THE POTENTIAL INCREASE IN ANNUAL REVENUE IF THE $.20 TOKEN RATE WERE INCREASED TO $.25 WOULD BE $922,44, BEFORE CONSIDERATION OF PASSENGER LOSS RESULTING FROM THE FARE INCREASE. IN PROJECTING THE IMPACT OF ANY FARE INCREASE THREE FACTORS MUST BE CONSIDERED, THE FIRST LOSS OF PATRONAGE WHICH WILL OCCUR WHEN FARES ARE INCREASED. A THIRD FACTOR IS THE TENDENCY OVER A PERIOD OF TIME FOR THE PERCENTAGE TOKEN USE TO DRIFT UPWARD UNDER THE PRESENT CASH-TOKEN PACKAGE. IT IS PREDICTED THAT THE VOLUME OF ADULT RIDING WOULD BE REDUCED BY 0.25% FOR EACH 1% INCREASE IN THE AVERAGE ADULT FARE BY REASON OF A FARE INCREASE FROM THE PRESENT $.20 LEVEL. FOUR TOKEN PLANS HAVE BEEN PROPOSED FOR THE AC TRANSIT SYSTEM, THEY INVOLVE SELLING FOUR TOKENS FOR $.85, $.90 OR $.95 AND AN INTERMEDIATE PLAN AT THREE TOKENS FOR $.70. ON THE BASIS OF THE PRESENT TOKEN USE FOR THE AC SYSTEM, AND EXPERIENCE WITH SIMILAR FARE STRUCTURE THROUGHOUT THE COUNTRY, AN ESTIMATE HAS BEEN MADE OF THE PROPORTION OF ADULT RIDERS EXPECTED TO TAKE ADVANTAGE OF REDUCED-RATE TOKENS AT VARIOUS FARE COMBINATIONS. HENCE, THE PRESENT RATE OF FIVE TOKENS FOR A DOLLAR IS USED BY 65.4% OF THE ELIGIBLE ADULT RIDERS. IF THE UNIT RATE IS INCREASED BY 21.25found, BY SELLING TOKENS AT FOUR FOR $.85, IT IS EXPECTED THAT THIS PRECENTAGE WILL DROP TO 60%. IF THE TOKEN RATE WAS ESTABLISHED AT 22.50found (FOUR FOR 90found) THERE WOULD BE A FURTHER DROP IN TOKEN USE -- TO APPROXIMATELY 54% OF THE ELIGIBLE ADULT RIDERS. /UMTA/

  • Corporate Authors:

    SIMPSON & CURTIN

    PHILADELPHIA, PA  USA 
  • Publication Date: 1967-1

Subject/Index Terms

Filing Info

  • Accession Number: 00241753
  • Record Type: Publication
  • Source Agency: Urban Mass Transportation Administration
  • Files: TRIS, USDOT
  • Created Date: Jan 3 1973 12:00AM