METRO prepares for fare increases

Laurence Simon writes that METRO is planning fare adjustments (read "increases"):

"Our current fare structure is complex, inequitable and unproductive," said Frank Wilson, METRO’s president and CEO, in a recent communication to the board of directors in which he recommended the board review METRO’s fare policy. This marks the first time since 1994 that METRO has sought to adjust its fare system to address a complex structure and higher operating costs.

There currently are 65 different fare options during peak service – a situation that creates confusion for riders and presents challenges for bus operators to manage. METRO is examining ways to simplify the fare structure to ensure equitable and efficient fare collection. Part of this solution will include the use of smart card technology.

At the same time, METRO plans to address the extensive discounting options that have undermined revenues. For all riders, the average one-way fare is actually only 43 cents, rather than the base fare of $1. For the past three years, METRO has maintained consistent operating budget levels, reduced staffing and eliminated unproductive route service, but costs continue to rise. METRO’S fuel costs alone have more than doubled since 2005.

In coming weeks, Wilson will propose a range of policy and fare structure adjustments to the board for their consideration. "By implementing sensible revisions," he added, "METRO should be better positioned to offer rewards for frequent ridership, to mitigate opportunities to misuse the system and maximize advantages presented by new technologies to improve service reliability and ease of access."

Every month, Tom Bazan shares METRO fare-box-revenue information obtained through public information requests, and much of the time, it seems like paid ridership for the light rail is declining (even though METRO and light-rail enthusiasts love to boast that boardings exceed projections). Having a world-class light-rail system (that many people ride for free) doesn't come cheap! And increasingly, it seems like it comes at the expense of bus service (which saw a healthy increase in Fare Box Revenue in May 2006 compared to May 2005, according to Bazan).

Posted by Kevin Whited @ 06/27/06 10:50 PM | Houston Transit | Technorati | Sphere | Comments (1)

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