Issue 393 November 25, 2002
Fare Policy Innovations to Soften the Blow

The MetroCard discounts initiated in the late 1990’s that initially attracted large numbers of new riders are no longer fueling ridership growth, according to a study commissioned by the Straphangers Campaign and Transportation Alternatives.  As a result, Straphangers has offered a plan to change the MetroCard discount system to attract new ridership and better serve low-income riders.  None of the changes would reduce MTA fare revenue.

To determine the popularity of a variety of possible changes to the MetroCard system, researchers conducted phone interviews with 805 NYC residents who had used transit within the last month.  Five policy recommendations were made based on the popularity of the change and its potential for attracting higher ridership:

Offer “flexible” five-day unlimited-ride passes for $16 that can be used on non-consecutive days.  Of the riders surveyed, 65% said the flexible pass would be a “major improvement.”

Replace lost or stolen 30-day unlimited-ride MetroCards.  Two-thirds of riders surveyed said that fear of losing the pass is an important factor in choosing a 7-day unlimited pass over the 30-day.  MTA Chair Peter Kalikow has said recently that this improvement is under consideration.

Reduce the base fare to $1.40 a ride, ending the current 10% bonus on MetroCard purchases of $15 or more. This change would provide a more equitable structure for low-income riders, 41% of whom are likely to pay full fare prices.  Only 13% of bonus card users are low-income riders.

Offer an unlimited-ride pass good for 14 days for $31.50.  Almost half of the low-income riders surveyed said they don’t buy the 30-day pass because of its cost.  A bi-weekly pass would enable riders to spread out costs over the month.

Aggressively promote the TransitChek program. Only 23% of riders surveyed said their employers offered TransitChek – the federal program that can save workers up to 25% of fare costs a year, up to $400, in income taxes.

Some popular choices, such as reducing the price of 7-day and 30-day unlimited ride cards, were eliminated as recommendations because they would reduce revenue.Reactions were split on other targeted fare reductions that were not ultimately recommended.Of five options that were presented to riders, 32% preferred off-peak discounts for mid-day, evening and weekend travel; 25% preferred getting 12 rides instead of 11 on a $15 bonus MetroCard; 16% preferred a lower fare for buses than for subways; 15% chose a reduced fare for children traveling with an adult on the weekend; and 12% preferred getting a bonus trip for purchases of $10 or more instead of $15 or more.Further, when asked if they would prefer their top choice or not increasing the $1.50 base fare or unlimited ride passes, 74% favored keeping current fare prices stable.


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