NTL Record

Title Consumer-Based Transit Pricing at the Chicago Transit Authority
Record ID 56369
Corporate Creator Multisystems, Inc.; Comsis Corporation; Martinez Associates, Ltd.; Midwest System Sciences; R.L. Oram Associates
Corporate
Contributor
United States. Urban Mass Transportation Administration; Chicago Transit Authority
Publisher United States. Department of Transportation
Publication Date 19920301
Language English
Abstract In examining potential fare structure revisions, the Chicago Transit Authority (CTA) sought to achieve the generally elusive goal of increasing both revenue and ridership -- or at least meeting revenue goals without suffering any additional ridership loss. Typically, any fare restructuring that produces additional revenue also results in a loss of ridership. However, recent research suggests that the introduction of a "market-oriented" pncing structure that emphasizes "deep discounting" of fares, perhaps in combination with differential pricing (based on service quality or time of day), can achieve the desired goal. Deep discounting involves the use of prepayment mechanisms ~ typically tokens or tickets -- pnced substantially lower than the cash fare. This approach has been implemented -- generally with success -- in several cities (e.g., Denver, Milwaukee and Allentown, PA), and other cities (e.g., Oakland, Miami, and Madison, WI) are considering implementing such structures.
Rosap ID dot:432
Rosap URL https://rosap.ntl.bts.gov/view/dot/432
TRT Terms Public transit; Consumer behavior; Transit riders; Ridership; Fares; Prices; Costs
General Subjects Rapid transit; Commuters; Riders; Bus fare
Geographical
Coverage
United States; Chicago Metropolitan Area
Report Number DOT-T-92-19
Resource type Tech Report
URL https://ntlrepository.blob.core.windows.net/lib/56000/56300/56369/consumerbasedtr9219mult_0.pdf
Format PDF
Database NTL Digital Repository