FARE STRUCTURE: DESIGN, IMPLEMENTATION AND EVALUATION- TECHNICAL REPORT #2

AS THE FIRST STAGE IN DETERMINING FARES FOR THE MAXI-CAB DEMONSTRATION PROJECT, A THOROUGH COST ANALYSIS OF BUS TRANSIT IN THE REGION WAS CONDUCTED. "COST FLOORS" WERE DEVELOPED WHICH REFLECTED MINIMUM REVENUES NECESSARY TO SUPPORT DIFFERENT LEVELS OF SERVICE. AN ESTIMATE FOR TOTAL OPERATING COSTS WAS DERIVED BY PROJECTING THE RATIO BETWEEN EACH OPERATIONAL FUNCTION (MAINTENANCE, ADMINISTRATION, EQUIPMENT) COST AND MILEAGE. MARKET RESEARCH SURVEYS WERE CONDUCTED TO DETERMINE THE PROBABLE VALUE OF MAXI-CAB SERVICE TO ITS PROSPECTIVE CUSTOMERS. THIS ANALYSIS COVERED BOTH QUANTITATIVE (DAILY WORK TRIP COSTS) AND QUALITATIVE (ATTRACTIVE FEATURES OF PRIVATE TRANSPORTATION WHICH COULD BE OFFERED BY MAXI-CAB) VARIABLES. SURVEYS INDICATED THAT NEARLY THREE PERSONS IN FOUR SPENT UPWARDS OF $4.00 WEEKLY FOR TRANSPORTATION AND THAT 81% WOULD SUPPORT MAXI-CAB IF FARES WERE HELD TO 71found THE ROUND-TRIP. DATA COLLECTED DURING THE COST ANALYSIS AND MARKET RESEARCH STAGES WAS COMPARED WITH PROPOSED ROUTES FOR THE MAXI-CAB TO DELINEATE VIABLE FARE ZONES WITHIN THE PROJECT AREA. FOUR FARE ZONES WERE DEVELOPED BASED ON THE DISTANCE OF ROUTE SEGMENTS FROM THEIR RESPECTIVE DESTINATIONS. A GRADUATED FARE STRUCTURE WAS THEN FASHIONED WITHIN THE ZONAL SYSTEM. FARES ARE COMPUTED ON A DAILY AND MONTHLY BASIS AND REVEAL COSTS THAT COMPARE FAVORABLY WITH PRIVATE TRANSPORTATION FOR PERSONS TRAVELING THREE OR FEWER MILES TO WORK. APPENDED MATERIAL DOCUMENTS ADDITIONAL DATA AND PROCEDURAL ASPECTS FOR MARKET ANALYSIS. /UMTA/

  • Supplemental Notes:
    • PROJ NO MICH-MTD-2
  • Corporate Authors:

    American Academy of Transportation

    2222 Fuller Road, Room 408-A
    Ann Arbor, MI  United States  48105
  • Publication Date: 1970-6

Subject/Index Terms

Filing Info

  • Accession Number: 00201062
  • Record Type: Publication
  • Source Agency: Urban Mass Transportation Administration
  • Files: TRIS, USDOT
  • Created Date: Nov 7 1972 12:00AM