innovations in fare and marketing strategies transportation-land use-environment connection:...
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Innovations in Fare and Marketing Strategies
Transportation-Land Use-Environment Connection: Redefining, Reevaluating and
Reinventing Transit
Daniel FleishmanMultisystems, Inc.
Lake Arrowhead, CALake Arrowhead, CAOctober 15, 2001October 15, 2001
Lake Arrowhead, CALake Arrowhead, CAOctober 15, 2001October 15, 2001
Broader Context for Fare Policy and Marketing
Increase in environmental justice concernsChanging 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 discountsGuaranteed lowest fareGuaranteed last ride/negative balanceAutoload featuresAutomated download of benefitsPost 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 partnershipsElectronic technologies facilitate new
initiatives and flexible new payment optionsAgencies introducing market-oriented
pricing strategies based on range of payment methods
Marketing is reflecting range of options and emerging markets