COST ANALYSIS OF CURRENT U.S. SURFACE TRANSIT FARE COLLECTION SYSTEMS (ABRIDGMENT)

The objective of this analysis is to measure capital and operating costs associated with collecting fares. Six transit systems were visited to obtain data. This discussion addresses two broad categories of cost - direct and indirect. Direct costs are the quantifiable capital and operating costs. Indirect costs, not easy to quantify, are related to system-wide revenue loss, operator involvement in fare-related activities, and impact of fare collection procedure on the system's insurance liabilities. It is concluded that while the transit industry's current fare collection costs are inexpensive relative to total operating costs (less than two percent), its fare collection methods may not be efficient. By requiring exact change in the farebox for each and every ride, the patron must bear the administrative burden of payment, contrary to the dominant trend in private industry toward credit cards and other "convenience" payment forms. It remains to be investiated whether a more convenient fare collection system would generate enough additional revenue to offset higher transit agency fare collection costs.

Media Info

  • Media Type: Print
  • Features: References; Tables;
  • Pagination: pp 60-62
  • Monograph Title: Recent developments in bus transportation
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00178761
  • Record Type: Publication
  • ISBN: 030902692X
  • Files: TRIS, TRB
  • Created Date: Aug 19 1981 12:00AM