Download Potential of Multipurpose Fare Media

Innovations in Fare and
Marketing Strategies
Transportation-Land Use-Environment
Connection: Redefining, Reevaluating and
Reinventing Transit
Lake Arrowhead, CA
October 15, 2001
Daniel Fleishman
Multisystems, Inc.
Broader Context for Fare
Policy and Marketing
Increase in environmental justice concerns
Changing markets, new initiatives
New opportunities for partnerships
Focus on seamless regional travel
Market-based strategies
Electronic fare media facilitate new
initiatives and strategies
Equity Concerns
Fare decision-making increasingly
influenced by political/legal factors
Concern re equal treatment of all groups
Organized opposition or legal action against
proposed fare increases
Can define/limit fare structure changes
Consent Decree in LA
Very deep discount in Philadelphia
Free transfers, weekly pass in Boston
Emerging Technologies
Facilitate New Strategies
Electronic media seeing increased use
Magnetic farecards (e.g., NYC, Chicago)
Smart cards (e.g., Washington, Ventura Co.)
Electronic media facilitate new initiatives
Subsidy arrangements
Multiple application opportunities
Regional farecard programs
New payment options
Impact on fare policy
Partnership Opportunities
Fare/subsidy arrangements
Social service agencies
Universities
Employers
Multiple application programs
Other modes
Non-transportation programs
Fare/Subsidy Arrangements
Social service programs
Access-to-jobs programs
EBT/transit arrangements
University programs
U-Pass programs
Reduced/free fares for students
Employer subsidy programs
Distribution of transit benefit
Annual pass programs (e.g., Eco Pass)
Voucher programs
Multiple Application Programs
Transit and other modes
Parking
Toll
Transit and non-transportation applications
Financial institutions/banks -- joint e-purse, add
value at ATM
Joint transit-university card
Joint transit-retail loyalty
programs
Focus on Seamless Travel
Travel patterns increasingly require use of
multiple modes or agencies
Growing emphasis on multi-agency
agreements and regional payment
integration
Regional Payment Integration
Can involve common fare structure (e.g.,
regional pass, free or reduced transfers)
Farecard can carry stored value and be flash
pass for other services
Regional farecard permits each agency to
retain own fare structure, with common
stored value
Market-Based Fare Strategies
Segment the market based on frequency of
use and willingness to prepay
Offer range of payment options
Unlimited ride passes (one-, two-, four-week)
Discounted multi-ride options (tokens, tickets,
stored value farecards)
Short-term passes (4-hr, 1-day, 3-day)
Special passes/tickets (e.g., family pass)
Increased Flexibility with
Electronic Payment
Stored value -- various
forms of bonus/discount
Purchase bonus
Add-value bonus
Rolling passes
7-day, 14-day,
31-day -- activate
on first use
partial day or
1-day -- sold
on board
Increased Flexibility with
Electronic Payment (cont.)
Automated fare differentials
Distance-based/zonal
Time-based (e.g., peak/off-peak)
Automated transfer discounts
Between modes
Between agencies
Emerging Electronic Payment
Options/Features
Frequency-based discounts
Guaranteed lowest fare
Guaranteed last ride/negative balance
Autoload features
Automated download of benefits
Post payment
Marketing Strategies
Marketing based on
level of prepayment
and discounts
 “Choose how much
you want to save.”
“How you save money
is your choice.”
Marketing Strategies (cont.)
Marketing based on range
of options targeted to
different market segments
and travel needs
Special payment options
for visitors (e.g., weekend
or family passes)
Tie-ins with tourist
attractions
Summary
Agencies facing growing demands and
opportunities that affect fare structures
Agencies entering new types of partnerships
Electronic technologies facilitate new
initiatives and flexible new payment options
Agencies introducing market-oriented
pricing strategies based on range of
payment methods
Marketing is reflecting range of options and
emerging markets