Archive for June 3rd, 2013

Metro’s Fare Policy Principles

June 3rd, 2013 13 comments

Fare table showing peak-of-the-peak pricing, in effect from August 2010 to June 2012

Fare table showing peak-of-the-peak pricing, in effect from August 2010 to June 2012

In a recent post we described how Metrorail fares are calculated.  The previous post noted that Metro’s Fare Policy Principles have established guidelines for how fares are structured.  When it is time to evaluate changes to Metrorail, Metrobus, and MetroAccess fares, Metro staff revisit the fare policy principles to look for guidance.

Metro Fare Policy Principles, adopted November 18, 2010:

  1. Ensure and enhance customer satisfaction;
  2. Establish a mechanism to allow customers to determine their fares easily;
  3. Optimize the use of existing capacity;
  4. Establish equitable fares and ensure compliance with federal regulations;
  5. Facilitate movement between modes and operators throughout the region;
  6. Encourage the use of cost-effective media;
  7. Generate adequate revenue while maximizing ridership;

The challenge for Metro staff is to explore fare concepts that strike balance between the different principles.  For example, Metro uses surcharges to encourage use of SmarTrip™ which is our most cost-effective fare media (principle #6), but the surcharges provide challenges to easily determined fares (principle #2).

Note that Metro’s distance-based fares are considered more equitable than flat fares.  Average income increases with distance from the core in the Washington region, so a flat fare would result in the highest per-mile fares for those groups who are the least able to pay them.  Metro’s Board of Directors understands this and has emphasized fare equity (principle #4) as one of its top priorities.

Many other aspects of the current bus, rail and paratransit fares reflect these principles:

  • Surcharges for not using SmarTrip™:  Metro charges $1 per trip for using paper farecards on rail and $0.25 per trip for using cash on the bus.  These surcharges have helped push usage of SmarTrip™ up to about 90%, resulting in the reduction of  fare collection costs.
  • Different fares on different levels of service:  Metro charges $1.60 base fare for local and MetroExtra services.  Buses that travel long distances on freeway lanes cost users a higher fare ($3.65) to correspond with the greater travel speeds.  Metro’s longest distance bus routes, which travel to Dulles and BWI airports, charge a $6 fare per trip.
  • MetroAccess fares are priced at twice the fixed route fare with a cap at $7.  This fare structure is intended to encourage use of the existing fixed route capacity Metro offers, which are available to MetroAccess-eligible customers free of charge.
  • The peak-of-the-peak (POP) rail fare surcharge, enacted in August of 2010, charged customers an extra $0.20 to enter the system during the peak 90-minute periods during the AM and PM peak.  This surcharge was another example of using fares to “optimize the use of existing capacity.”   However, riders informed Metro this fare concept impacted fare policy principles #1 and #2, customer satisfaction and allowing customers to easily determine fares.  In the end, these two policy principles won out and the POP surcharge was eliminated starting July 1, 2012.

What fare concepts might help better align Metro’s fares with the fare policy principles?   What ideas have other agencies implemented that you’d like to be considered for Metro?

 

 

Categories: Fares and Service Tags: , , ,