Metrobus Transit Study.pdf - City of St. John's

St. John’s Transportation Commission (Metrobus) 2011
Market Assessment and Strategic Directions Study – Part D: Strategic Directions
14.0 FARE STRATEGIES
14.1 M-Card
The implementation of the M-Card in 2006 replaced the 10 Ride Card, Monthly and Semester Pass
paper media. Its introduction has increased revenue security as well as provided the flexibility to
introduce other fare payment options in the future. It has also been beneficial to transit users as the
added convenience allows passengers to fill up their cards at stations and on the internet and not be
left looking for exact change as they board the bus. The various surveys have found that the M-Card
has been significantly more popular than cash as a means of fare payment and M-Card usage covers
about 75-80 percent of riders 7 .
It is recommended that Metrobus continue to expand the M-Card system and introduce more
outlets and technology upgrades. M-Card also offers the opportunity to develop a combined transit
and parking pass. By recognizing that some transit users will occasionally require a car for specific
trip making, having the M-Card compatible with parking payment systems will increase the
convenience of the card for transit users, particularly at strategically located park and ride lots.
M-Card is also very adaptable to special promotions, rewards programs and affinity programs with
retailers or other partners. Metrobus is a transit industry leader with this technology and should
continue the momentum already developed.
14.2 Fare Strategy and Affordability
Fare increases, no matter how small, are viewed negatively by passengers especially if they perceive
that the service they are receiving has not improved. However, fare increases are needed to keep up
with the rising costs of operating and maintaining the system (e.g. fuel, wages, etc.).
Ideally, small fare increases should be implemented annually during the budgeting process to avoid
large one-time increases to “catch up”. Larger fare increases should be tied to the introduction of
new services, extended service hours or improved frequency of service, provision of new equipment
or in response to extraordinary circumstances (e.g. sudden, dramatic increase in fuel costs). This
approach to setting fares will give customers the impression that they are getting appropriate value
from the increased fare.
Metrobus has several fare categories, with discounts to specific demographic groups (seniors,
students, children) offered for 10-ride tickets and monthly passes.
There is also a single cash fare for all age categories (with the exception of child fares), which is
effective and appropriate. Metrobus should move as quickly as possible to a single cash fare for all
categories as this will greatly simplify ridership reporting and operations while reducing potential for
conflict between drivers and users.
Pricing strategies and incentives should continue to move as many users as possible from cash to
tickets and passes on the M-Card. While this reduces the average fare, the conversion of occasional
cash riders to become more regular transit users is a key growth strategy.
The practice of discounting fares for key promotions (i.e. Eighties Promotion in August) is an
effective means of getting people to try the service or use it more. The Eighties Promotion reduced
7 This statistic was noted from the passenger surveys. Actual system usage of M-Card is between 60 to 65 percent of
riders.
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