Fare Study Final Report

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Fare Study Final Report AAATA Fare Study Final Report Delivered on: September 7, 2018 Prepared by Four Nines Technologies Fare Study: Final Report - FINAL September 7, 2018 Table of Contents Executive Summary Error! Bookmark not defined. 1 Introduction 21 2 Review & Analysis of Existing Fare Structure 22 2.1 Current Fare Structure 23 2.2 Current Fare Collection 28 2.2.1 Onboard Fare Collection Technology 29 2.2.2 Fare Media 30 2.2.3 Retail & Online Fare Product Distribution 32 2.3 Funding Sources 32 3 Peer & Industry Review 33 3.1 Service Characteristics & Performance Indicators 34 3.1.1 Peer Service Characteristics 34 3.1.2 Performance Indicators 35 3.2 Fare Structures, Products, Pricing, & Programs 39 3.2.1 Rider Categories 39 3.2.2 Local Fares 40 3.2.3 Commuter Bus Fares 41 3.2.4 Third-Party Pass Programs 42 3.2.5 Free Fare Zones 43 3.2.6 Fare Media 43 3.2.7 Change Cards 44 3.3 Discount Fare Programs 44 3.3.1 Discounts Offered 44 3.3.2 Enforcement of Discount Fares 46 3.3.3 Photos and Names on Discount Fare ID Cards 48 3.3.4 Low Income Fare Programs 49 3.4 Third-Party Pass Programs 50 3.4.1 Pass Program Pricing 51 3.4.2 Pass Program Payment 54 3.4.3 Pass Program Administration & ID Cards 55 3.4.4 Student Pass Programs 56 Prepared for: AAATA/TheRide 2 Prepared by: Four Nines Technologies Fare Study: Final Report - FINAL September 7, 2018 3.5 Fare Collection Technology 57 3.5.1 Smart Card Systems 57 3.5.2 Mobile Ticketing 58 3.5.3 Mobile Ticketing Deployment 59 3.5.4 Mobile Ticketing & Smart Card Integration 59 3.5.5 Electronic Cash Payment Networks 60 3.5.6 Use of Fare Collection Data for Planning 60 3.6 Fare Simplification 61 3.7 Multimodal Fare Integration 64 3.8 Regional Fare Integration 66 3.8.1 Interagency Fare Policy Agreements 66 3.8.2 Regional Fare Collection Technology 67 3.8.3 Regional Fare Integration 69 3.9 Strategies for Regular Fare Reviews & Changes 70 4 Community Engagement 71 4.1 Non-Riders 72 4.2 Riders 72 4.2.1 Current State of Fare Payment 72 4.2.2 New Fare Payment Technologies 75 4.2.3 Age & Interest in New Fare Payment Technologies 76 4.2.4 Income & Interest in New Fare Payment Technologies 77 4.2.5 Mobile Ticketing versus Smartcards 77 4.2.6 Reasons for Liking New Fare Payment Technologies 78 4.2.7 Reasons for Not Liking New Fare Payment Technologies 78 5 Strengths, Weaknesses, Opportunities, & Challenges 79 5.1 Strengths 80 5.1.1 Fare Pricing & Policies 80 5.1.2 Discount Fares 80 5.1.3 Third Party Programs 80 5.1.4 Fare Technology 81 5.1.5 Operations 81 5.2 Weaknesses 81 5.2.1 Fare Pricing & Policies 81 Prepared for: AAATA/TheRide 3 Prepared by: Four Nines Technologies Fare Study: Final Report - FINAL September 7, 2018 5.2.2 Discount Fares 83 5.2.3 Fare Technology 83 5.3 Opportunities 84 5.3.1 Fare Pricing & Policies 84 5.3.2 Discount Fares 85 5.3.3 Third Party Programs 85 5.3.4 Fare Collection Technology 86 5.4 Challenges 87 5.4.1 Fare Pricing & Policies 87 5.4.2 Third Party Programs 88 5.4.3 Fare Collection Technology 89 6 Option Development 89 6.1 Transfers 89 6.1.1 Option 1: Maintain existing transfer policy 90 6.1.2 Option 2: Transition from one-way transfers to time pass 90 6.1.3 Option 3: Restrict transfers to electronic media 91 6.1.4 Option 4: Enable formal transfers between FlexRide and Fixed Route service 91 6.2 Change Cards 92 6.2.1 Option 1: Maintain change cards 93 6.2.2 Option 2: Eliminate change cards 93 6.3 Tokens 93 6.3.1 Option 1: Maintain existing token policy 94 6.3.2 Option 2: Tokens only for social services agencies, eliminate tokens for public purchase 94 6.4 30-Day Pass 94 6.4.1 Option 1: Maintain current 30-Day pass pricing 95 6.4.2 Option 2: Explore various multiples with goal of incentivizing purchase and use 95 6.4.3 Option 3: Enable fare capping 96 6.5 1-Day Pass 97 6.5.1 Option 1: Maintain 1-Day Pass 97 6.5.2 Option 2: Eliminate 1-Day Pass 97 6.6 Rider Category Discounts 98 6.6.1 Option 1: Maintain current rider category discounts 98 6.6.2 Option 2: Establish consistent discounts on all services 98 6.6.3 Option 3: Discontinue discount fares for individuals 60-64 on fixed route 99 Prepared for: AAATA/TheRide 4 Prepared by: Four Nines Technologies Fare Study: Final Report - FINAL September 7, 2018 6.7 Fare Increase Policy 99 6.7.1 Option 1: Maintain current fare increase policy 100 6.7.2 Option 2: Establish a set period of time between fare increases 100 6.7.3 Option 3: Evaluate need for fare increase along with regular budget review 100 6.7.4 Option 4: Establish internal indicator(s) that will be used to determine when a fare increase should happen 100 6.8 Service Types 101 6.8.1 Option 1: No change 101 6.8.2 Option 2: Establish all services’ fares using a multiple of the base adult fixed route fare 102 6.9 Fare Technologies 102 6.9.1 Option 1: No change 102 6.9.2 Option 2: Smart card 102 6.9.3 Option 3: Mobile ticketing 103 6.9.4 Option 4: Smart card + mobile ticketing 103 6.10 Fare Enforcement 103 6.10.1 Option 1: No change 104 6.10.2 Option 2: Shift enforcement to offboard 104 6.11 Third Party Pass Programs 105 6.11.1 Option 1: No change to current reimbursement pricing 105 6.11.2 Option 2: Do not incorporate discounts into pricing of per-ride rates for pass programs 106 7 Modeling Process 106 7.1 Baseline Fare Model 107 7.1.1 Base Year Data 107 7.1.2 Fare Structure 107 7.1.3 Baseline Model Results 115 7.2 Fare Model Alternatives 116 7.2.1 Modeling Alternatives Assumptions 117 7.2.2 Modeling Results & Evaluation 120 8 Final Recommendations & Next Steps 123 8.1 Transfers 124 8.1.1 Recommendation 1: Transition from one-way transfers to time pass as base fare 124 8.1.2 Recommendation 2: Enable formal transfers between FlexRide and Fixed Route service 126 8.2 Change Cards 127 8.2.1 Recommendation: Eliminate change cards 127 Prepared for: AAATA/TheRide 5 Prepared by: Four Nines Technologies Fare Study: Final Report - FINAL September 7, 2018 8.3 Tokens 128 8.3.1 Recommendation: Tokens only for social services agencies; eliminate tokens for public purchase128 8.4 30-Day Pass 129 8.4.1 Recommendation 1: Lower the 30-Day Pass pricing multiple for fixed route 129 8.4.2 Recommendation 2: Explore fare capping as a future possibility 130 8.5 1-Day Pass 132 8.5.1 Recommendation: Eliminate 1-Day Pass 132 8.6 Rider Category Discounts 132 8.6.1 Recommendation 1: Discontinue discount fares for individuals 60-64 132 8.6.2 Recommendation 2: Do not eliminate discounts for PCAs on fixed route services at this time 133 8.6.3 Recommendation 3: Establish consistent discounts on services using current discount rates 134 8.7 Fare Increases 135 8.7.1 Recommendation: Establish internal indicator(s) that will be used to determine when a fare increase should happen 135 8.8 Service Types 136 8.8.1 Recommendation: Establish all services’ fares using a multiple of the base adult fixed route fare 136 8.9 Fare Technologies 137 8.9.1 Recommendation: Procure a smart card + mobile ticketing system 137 8.10 Fare Enforcement 140 8.10.1 Recommendation: Shift enforcement to offboard 140 8.11 Third Party Pass Programs 142 8.11.1 Recommendation 1: Do not incorporate rider category discounts into pricing of per-ride rates for pass programs; this is not common industry practice 142 8.11.2 Recommendation 2: The MRide data agreement does not need any modifications unless the University would like to cooperate in moving to contactless cards 143 8.11.3 Recommendation 3: Develop a methodology for pricing new third party pass programs without pre-existing ridership data 143 8.11.4 Recommendation 4: Expand business program (similar to go!Pass program) to other businesses in the service area located near transit service 145 8.12 Formal Fare Policy 146 8.12.1 Recommendation 1: Establish a fare tariff 147 8.12.2 Recommendation 2: Establish a fare policy 148 9 Equity in Transit: Processes for Evaluation 149 9.1 Title VI Compliance 149 9.1.1 Overview 149 Prepared for: AAATA/TheRide 6 Prepared by: Four Nines Technologies Fare Study: Final Report - FINAL September 7, 2018 9.1.2 Specific Considerations 150 10 Mobility as a Service: Possibilities for the Future 150 10.1 State of the Industry 151 10.2 Considerations in Developing MaaS 154 10.2.1 User Experience 154 10.2.2 Data Collection & Handling 155 10.2.3 Designing a MaaS System 155 10.3 Emerging Best Practices 156 10.3.1 Single Payment System 156 10.3.2 Privacy 156 10.3.3 Cost 156 10.3.4 Journey Planning 157 10.3.5 Implementation 157 10.4 Possibilities for the Near-Term Future 157 11 Appendix A: Fixed Route Fare Media Chart 158 12 Appendix B: Discount Fare Categories & Eligibility 162 13 Appendix C: Rider Survey 164 14 Appendix D: Non-Rider Survey 167 15 Appendix E: Modeling Alternatives Details 170 Prepared for: AAATA/TheRide 7 Prepared by: Four Nines Technologies Fare Study: Final Report - FINAL September 7, 2018 Executive Summary The Ann Arbor Transportation Authority (AAATA), known by the public as TheRide, is regarded as an innovative and adaptive transit agency.
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