Transit Pricing Programs Value Pricing for Transportation in the Washington Region June 4, 2003 Richard F. Stevens Washington Metropolitan Area Transit Authority

Transit Pricing Programs  Why employ pricing programs?  Charge an appropriate fee for the services provided – market based pricing  Influence the demand for services – demand management 1

Transit Pricing Programs  Market Based Pricing Strategies  Reflect demand and cost of service  Peak /off-peak fare differentials  Parking fees and rates  Express bus fares  Influence mode access to Metrorail  Feeder bus pricing  Promote trip chaining  Bus and rail transfer policies  Grow the market  Bus fare buydowns  Transit benefit programs 2

Transit Pricing Programs  Influence mode access to Metrorail  Walking and bus are predominate modes in urban areas  Auto (park & ride and kiss & rider) and feeder bus predominate mode in suburbs  Parking capacity and bus headways affect suburban mode of arrival 3

Transit Pricing Programs  Demand Management Strategies  Influence temporal patterns of demand  Shift demand to meet supply  Influence the mode of access to Metrorail  Relationship to feeder bus fares to parking fees  Level of service  Encourage other regional strategies  Alternative work schedules  Parking policies 4

Transit Pricing Programs  Influence temporal demand patterns  Shift demand to shoulders of the peak where excess capacity exists  Use peak-of-the-peak pricing as the motivator  Reduce the length of peak periods  Did not implement:  Large fare differential required  Complicates fare structure 5

Transit Pricing Programs  Summary  Many pricing strategies available in the transit planners toolbox  Pricing strategies can be successful  Pricing strategies may not be stand alone actions  Service improvements  Parking policies  Congestion mitigation  Market impacts must be assessed  Consumer  Political capital 6