Metro-Dade Transit Agency fare cross-elasticity and allocation

Metro-Dade Transit Agency fare cross-elasticity and allocation

Material Information

Metro-Dade Transit Agency fare cross-elasticity and allocation
Portion of title:
Existing fare policies/pass usage characteristics
University of South Florida -- Center for Urban Transportation Research
Place of Publication:
[Tampa, Fla
University of South Florida, Center for Urban Transportation Research
Publication Date:
Physical Description:
11 leaves : ill. ; 28 cm.


Subjects / Keywords:
Local transit -- Fares -- Florida -- Miami-Dade County ( lcsh )
Local transit -- Ridership -- Florida -- Miami-Dade County ( lcsh )
local government publication ( marcgt )
non-fiction ( marcgt )


Additional Physical Form:
Also issued online.
General Note:
"July 1993."
General Note:
General Note:
"Prepared for Metro-Dade Transit Agency."
Statement of Responsibility:
prepared by Center for Urban Transportation Research, College of Engineering, University of South Florida.

Record Information

Source Institution:
University of South Florida Library
Holding Location:
University of South Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
025524122 ( ALEPH )
668425549 ( OCLC )
C01-00314 ( USFLDC DOI )
c1.314 ( USFLDC Handle )

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Metro-Dade Transit Agency fare cross-elasticity and allocation.
n Technical memorandum number 1,
p Existing fare policies/pass usage characteristics /
prepared by Center for Urban Transportation Research, College of Engineering, University of South Florida.
3 246
Existing fare policies/pass usage characteristics.
[Tampa, Fla. :
University of South Florida, Center for Urban Transportation Research,
11 leaves :
ill. ;
28 cm.
"July 1993."
"Prepared for Metro-Dade Transit Agency."
Also issued online.
Local transit
x Fares
z Florida
Miami-Dade County.
Local transit
Miami-Dade County.
2 710
University of South Florida.
Center for Urban Transportation Research.
1 773
t Center for Urban Transportation Research Publications [USF].
4 856


METRO-DADE TRANSIT AGENCY Fare Cross-Elasticity and Allocation FINAL Technical Memorandum Number 1 Existing Fare Policies/Pass Usage Characteristics Prepared for Metro-Dade Transit Agency Prepared by Center for Urban Transportation Research College of Engineering University of South Florida Tampa, Florida CUTR JULY 1993


TECHNICAL MEMORANDUM NUMBER 1 Fare Cross-Elasticity and Allocation (Existing Fare Policies/Pass Usage Characteristics) This memorandum summarizes the existing MDTA fare policies and current pass usage characteristics, and offers a comparison to other similar systems. This memorandum is in accordance with Work Order Number 7, Tasks 1, 2 and 3 of the interlocal agreement between the University of South Florida and Metropolitan Dade County. The purpose of this Work Order is to ob tain information on the u sage patterns and th e behavior/motivations of MDTA patrons purchasing the monthly Metropass. This information will then be used to develop cash and pass cross-elasticities and to revise methodologies to be applied when forecasting the impact of fare structure changes o n method of fare paymen t. This information will also be used to revise allocation of pass revenues to bus and rail. CURRENT MDTA FARE POLICY MOTA currently provides five modes o f transit service. Local Metrobus service bas a $1.25 full cash fare discounted to $0.60 for the elderly, disabled, and students. Metrobus service has a $1.50 full cash fare discounted to $0 75 for the elderly, disabled and students. The Metrorail fares are identical to loca l Metrobus. The Metromover has a $0.25 full cash fare discounted to $0.10 for elderly, disabled, and students. The final mode of transit service delivered is the Special Transportation Service (STS). This is a door-to-door service provided for the physically disabled. The cost for this service is $1.50 (0-10 miles), $2 .50 (11-20 miles), $3.50 (21-30 miles) and $4.50 (over 30 miles). The fare fo r ST S service is scheduled to change in October 1993 to a flat fare of $2.00 for trips within Dade County. Discounted Cash Fares To ride the Metrobus a t a discounted fare, st udents in grades 7-12 must obtain a student permit through the Dade County School system. Students in grades 1-6 do not need a permit to ride Metrobus at the reduced fare To ride the Metrorail or Metromover at a reduced fare, all students (grades 1-12) must purchase a reduced fare rai l permit (schoollD required) for $0.50 available at the transit information center at the Government Center Station Preschoolers l ess than 42 inches tall can ride the Metrobus, Metrorail, and Metromover free at all times when accompanied by an adult. 1


Senior citizens and disabled riders can obtain a free reduced fare bus permit (proof of age/disability required) at the Government Center Station. This permit enables the patron to pay the discounte d fare on Metrobus. A Medicaid card is also valid as identification for reduced fares on Metrobus. T o ride at the discounted rate on the Metrorail and Metromover, seniors and disabled patrons must purchase a reduced fare rail permit for $0.50 at the Gover nment Center Station. Transfers Table 1 provides the current transfer rates between Metrobus, Metrorail, and Metromover. No transfers are available for the STS, as it is operated independently as a door-to-door service. Transfers from bus to bus are valid for two hours after the time they are punched, an d are limited to use at locations where routes meet or cross each other or bus routes link with the Metrorail system. Patrons cannot transfer to the same route in either an ongoi ng or backriding direction, though transfers can be made at tran sfer points to a new route going i n the same direction as the one the patron transferred from An a.m. rail transfer (bus to rail) is valid until 12:00 noon, while a p.m. rail transfer is valid from Noon until 12:00 midnight. Rail to bus transfers must be purchased at the station where you board the train. Bns operators will not accept transfers from stations where the passenger exited the tr ai n. Transfers are good for only one trip, although a transfer can be purchased on a transfer. Rail to mover transfer s oceur at the Government Center station via a direct connection within the fare control area. MOTA currently has transfer agreements \vith Tri-Rail and neighboring Broward County Transit (BCI'). Based on a May 1989 Memorandum of Understanding, Tri-Rail patrons transfer free to both Metrorail and Metrobus local routes. MOTA is reimbursed only for those persons transferring when using a one-way Tri-Rail ticket. These tickets are .. turned over by the patron to MOTA who is then reimbur sed by Tri-Rail. Tri-Rail pass holders are able to ride free on any component of the MOTA transit system except express, shuttle, or park/ride service. Full fare passengers transferrin g from BCf bus service to a MOTA Metro bus pay a fare up grade of $0.40 for local bus service and $0 .65 for express bus service. The BCf transfers are aocepted only at specified inter-county transfer points : 2


Table 1 MDTA Transfers Plus $0.25 upgrade to Express Bus seNice Plus $0.15 upgrade to Express Bus seNice >" . 3


Time of Day Like most transit systems in the U.S., the MOTA does not currently have a peak period surcharge for any of their modes of transit service. MOTA fares remain the same regardless of time of day or day of week. Passes The cost of a MOTA monthly Metropass is $60 .00 A discount pass for the elderly, disabled, and students is available for $30.00. The Metropass allows unlimited rides for one month on the Metrobus, Metrorail, and Metromover The pass is also valid on express bus service at no additional cost. MOTA sells Metropasses at a group discount rate of $54.00 for between 5 and 99 passes, and $52 00 for 100 or more passes. Passes can be directly purchased at the Government Center Station or at all MOTA sales outlets. G roup passes are sold through the mail, with orders received by the 10th of the preceding month. College students may purchase a monthly Metropass for $45.00 at participating colleges and universities. Students must be registered full time at the time of sale and must be registered at the institution where the pass is purchased. Parking Most Metrorail stations have parking facilities available for rail riders. The daily parking rate is $1.00. Metropass holders can purchase a $2.00 parking permit with their pass that allows unlimited use of the rail parking facilities for that month. Tokens MOTA sells tokens at 10 for $10.00. These tokens can be used as full fare on both Metrobus (local) or Metrorail. To use tokens on express service patrons must also pay a $0.25 upgrade. Tokens are available at all rail stations as well as at all MOTA pass sales outlets. 4


Free Fares Currently, only MDTA employees, retired MDTA employees (having had 30 years or longer of service) and their spouses, and various uniformed off icer s (police, correction officers, court bailiffs, and firemen) with proper id e ntification can ride for free on Metrobus. N o such policy currently exists for Metrorail or Metromover. Other Service MOTA also offers a Brickell shuttle service for a full cash fare of $0.25, and a discounted fare of $0.10. Park-n-Ride service for special events (football, tennis, etc.) are also offered. Fares for special events differ by each event and its location. Table 2 summarizes the distribution of hoardings by fare payment method and by mode from October 1990 to May 1993. As can be seen from the table, token use on both the bus and rail has increased since its inception in December 1990. Token use on the Metrorail has more than tripled during this period. No significant seasonal or overall trends have been noticed on pass usage. CURRENT MDTA PASS USE The following observations are made of current MDTA Metropass usage based on information supplied by MDTA in the May 1993 Summary of Monthly Pass Sales By Pass TY)?e-Outlet, and information derived from the Ridership Report, and Ridership Technical . Report : Table 3 summarizes the pass sales by pass type for May 1993. Using May 1993 as an example month: Percentage passenger hoardings by Metropass on Metrobus, rail, and mover were 21%, 29%, and 29%, respecti vely. 83% of Qll:porate Metropass sales includ e a rail parking permit, therefore it can be assumed that at least 83% of Corporate pass buyers ride Metrorail. 14% of outlet pass sales include a rail parking permit 5


80% 20% 80% 20% 76% 22% 77% 21% 76% 22% 76% 22% 76% 21% 76% 21% 76% 21% 77% 20% 79% 19% 77% 20% 76%, 21% 76% 21% 78% 19% 77% 20% 76% 20% 76% 20% 75% 21% 75% 21% 75% 20% 77% 19% 73% 23% 73% 2.'1% 73% 23% 74% 22% 76% 2 0% 76% 20% 75% 20% 74% 21% 74% 2 1 % Tabl e 2 METRODADE CASH, PASS AND TOKEN BOARD IN OS BY MODE 67% 33% 68% 32% 2% 66% 30% 4% 2% 63% 32% 5% 2% 62% 32% 6% 2% 62% 32% 6% 3% 62% 32% 6% 3% 61% 32% 7% 3% 63% 31% 6% 3% 63% 30% 7% 2% 64% 29% 7% 3% 61% 32% 7% 3% 60% 33% 7% 3% 62% 31% 7% 3% 64% 29% 7% 3% 62% 30% 8% 4% 61% 31% 8% 4% 58% 31% 11% 4% 51% 31% 12% 4% 56% 31% 13% 5% 56% 30% 14% 4% 56% 30% 14% 4% 57% 29% 1 4 % 4% 57% 29 % 14% 4% 58% 28% 14% 4% 58% 28% 14% 4% 60% 27% 13% 4% 58% 29% 13% 5% 57% 29% 14% 5% 55% 30% 15% 5% 55% 30% 15% 6 74% 26% 74% 26% 79% 21% 76% 24% 75% 25% 75% 25% 76% 24% 75% 25% 76% 24% 78% 22% 78% 22% 72% 28% 75% 25% 77% 23% 80% 20% 77% 23% 78% 22% 76% 24% 72% 28% 72% 28% 70% 30% 75% 25% 79% 21% 79% 21% 73% 27% 66% 34% 76% 24% 72% 28% 71% 29% 67% 33% 69% 31%


P ASS TYPE Regular Pass Discount Pass Corporate Group (5-99) Corporate Group (100 + ) Colleges/Universities County{fransit Employees TOTAL Average Cost/Pass Table3 MDTA TOTAL PASS SALES B y P ass Type ( May, 1993) % #SOLD o f tota l C OST/I ASS 3,151 17.13% $60.00 10,507 57.11% $30.00 1,260 6.85% $54.00 1,735 9.43% $52.00 872 4.74% $45.00 873 4.75% $52.00 18,398 7 % $ oftotal $189,060 25. 30% $315,210 42.19% $68,040 9.11% $90,220 12.07% $39,240 5.25% $45,396 6.08% $'747,166


82% of outlet sales are discounted passes. In total, 57% of passes sold are $30 discount passes The average purchase price of a pass was $40.61 Based on the 21, 29, 29 percentage pass hoardings by mode stated above, and the 18,398 passes sold, on average 81 trips per pass were taken on the three modes. The average rider using Metropass would have made 59 bus, 19 rail, and 3 mover trips in the !'lonth of May 1993 (See Table 4) . BUS 5,145,843 RAIL 1,197,925 MOVER 176,367 TOTAL 6,520,135 Table 4 May 1993 Metropass Ridership 21.0% 29.0% 29.0% 22.7% In general, other items of importance include: 1,080,627 59 347,398 19 51,146 3 1,479,171 81 County personnel-can pay for the monthly pass through payroll deduction and receive the pass in the mail. Purchase of corporate passes at work sites is inconvenient, with orders needing to be placed a month in advance. 8 . ..


COMPARISONS WITH OTHER SYSTEMS .. Table 5 presents base and monthly pass fare information for MDTA and similar transit agencies. As can be seen from this table, MDTA is one o f few agencies not offering a discount on its base monthly pass for both bus and rail modes. The breakeven number of trips for both bus and rail is 48, higher than most other agencies. It must be noted however, that for Metrorail users $1.00 a day in parking costs can be saved by buying a $2.00 monthly parking pass along with the purchase of a Metropass. Many MDTA patrons must transfer when travelling by bus o r rail. With a transfer t!Je average fare per trip would be $0.75. This would create a breakeven point for number of trips at 80 unlinked trips, but o nly 40 linked trips. For rail patrons who use the paid parking facilities the breakeven point of a monthly Metropass and monthly parldng permit combined ($62.00) would be 35 trips based on an average fare of $1.75 ($1.25 fare + $0.50 average trip for parking). Other systems were contacted regarding their methods of allocating farebox revenue by mode and of forecasting riders hip by fare payment method. All transit agencies contacted currently use existing ridership information to allocate fares by mode. None of the systems surveyed used any f ormal method to predict ridership by fare payment method. CUTR recently completed a survey of the 20 largest transit systems for inform atio n related to both the Fare Elasticity and the Fare Policy tasks with MDT A. This informatio n is included in the Fare Policy Work Order Technical Memorandum. MDTA NEEDS FOR PASS USE INFORMATIO N First, with regard to allocation, MDTA indicates that there is currently no good information on the reasons why peopl e buy passes, the breakeven point for different users, where and how the passes are used, and whether usage is most sensitive to price, convenience, or other variables. Farebox and turnstile data currently provide MDTA with the number of boardings by p ass for each mode. No information is available on the pass holder or on linked trips. Technical Memorandum Number 2 will present the method for surveying current pass and cash users by mode. The second issue is forecasting pass usage. Current MDTA forecasting models assume a constant relationship between the price of the monthly pass and the base cash fare. MDTA 9


Table 5 Monthly Pass Fare Comparison SYSTI!.M ADULT BASil: MOTOR8US RAJJ. (3) >lONTIILY PASS DISCOUNT (2) MOTOR BUS RAIL (3) A 'l'I..A.NT A sus SI.:U n" 8AL11MOR8 Sl.2S (Z) St.:U (Z) "" ' l)OS'I'ON so.oo (Z) (ZJ ''" ... CUICAGO Sl..lO 11..50 -18% ... ' CLI!VIlLAND $ 1 .25 (Z) SI.:JO (Z) 18% '"" DALLAS $0 ., ' LOS ANGBI..OS suo Sl.UJ ,,.. ,,.. ( M 1AW1 ...... sus .,. _.,. NnW JI!IUl!Y SLOO(Z) SLOO(Z) .,. "' NBWYORI. $1.2$ $1.2$ NA NA PIDLADELPMA $)3) Sl.$0 .... PITTSBURGH $1.2$ (l) Sl.2$ (Z) '"" '"' PORTLAND $0.95 (Z) SOo95(Z) u .. SAN ANTONIO SOAO(Z) 9% SAN FRANCISCO SI.OO $1.00 ,.,. 27% SAN IOSil SI.OO SI.OO 329& :no; WASlllNGTOH D.C. $1.00 (Z) $1.00 (Z) NA NA (I) Mrdl L 11>93 (l) Matdll, 1993 -COMPARISON TO 44 BASS PARS 'TRtPSIMONTH (3) "IIAIL"DOESNOTINCWDECOMMliTER !WI. (Z) AllDrr!ONALOISTANC$0R ZON5C>IARG a 10 MONTBL Y PASS WO"'OR.BUS BR8AC.BVEN BR VSN COST # OPTR.IPS COST 'O.P TRIPS "'' :14 "'' :14 142 34 "'' :14 S20 33 S27 3l $78 52 $78 $2 $4.5 36 $.!4 S6 $23 31 m 38 .. 38 S60 .. S60 ,., .. ,., .. NA NA NA NA 1$0 l9 ssa ,. l-ID ,. $40 S1 m 33 m ll $16 40 m 3> llZ 31 $l

would like to integrate cash and pass prices directly into the models and thus be able to forecast the ridership i m pacts f or separate c h anges in c:asb -d pass prices. The survey results fro m thi s and other studies will be used to estimate cross-elasticities by fare payment method and the likely results of cash/pass price different i als. 11


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