title
RTA Ridership Incentives
end
DESCRIPTION: Implement Changes to the Fare Structure
AGENDA NO: Click or tap here to enter text.
ACTION REQUEST:
? Approval ? Review Comment ? Information Only ? Other
RECOMMENDATION:
recommendation
Authorize the Chief Executive Officer to implement adjustments to the RTA Fare Structure which will (1) offer discounts to youth and senior passengers, (2) simplify RTA's existing fare structure, and (3) reduce the cost of monthly passes for all riders.
Staff recommends implementing the changes beginning on July 1, 2021 to correspond with RTA's return to full service. Changes to the Fare Structure which are labeled as temporary measures will sunset on December 31, 2021. Changes to the Fare Structure which are not labeled as temporary will have no sunset date.
The recommended changes are based on comprehensive peer analysis, and an assessment of the ability of RTA's existing products to meet the needs of its ridership. The adjustments can be implemented utilizing existing fare collection technology.
end
ISSUE/BACKGROUND:
body
RTA currently offers 21 unique fare products. Passenger revenue data suggests that RTA may have too many products within its fare structure, as one-third of RTA's fare products account for less than 5% of RTA's annual fare revenue. Despite the plethora of fare options, passenger revenue data also suggests that RTA is not offering pricing or pass options which incent the purchase of monthly passes, as single-ride tickets still account for over 70% of RTA's passenger fare revenue.
RTA staff analyzed whether easily implementable changes to the fare structure would yield qualitative and quantitative benefits to RTA and its ridership as the New Orleans Region continues to emerge from the COVID-19 pandemic. These adjustments would ultimately be implemented as a compliment to this summer's return to full service and implementation of certain New Links recommendations.
end
DISCUSSION:
Peer Analysis
...
Click here for full text