For more information on implementing fare-capping and other advanced solutions, speak to our business development representative directly at Ana.Stanca@enghouse.com.
Let’s make transit more accessible for everyone!
Author: Ana Stanca
Demand Generation Leader, Enghouse Transportation
Research says practice is increasing ridership.
Recent research published in the journal Transport Policy by the University of Tennessee-Knoxville (UT-K) highlights that implementing monthly fare-capping in transit agencies can lead to increased ridership. Fare-capping allows a transit rider to contribute towards a daily, weekly, or monthly pass in increments, ensuring they never pay more than the pass price in a given period.
Understanding Fare-Capping In practice
Fare-capping promotes affordability and equity in public transit. For instance, in Houston, METRO’s fare structure includes a day pass accumulator for local services. The local single trip fare is set at $1.25, while the day pass is priced at $3. Once a rider reaches this threshold through individual fares, they automatically receive the benefits of a day pass without additional charges.
The Impact of Fare-Capping According to UT-K researchers, who analyzed ridership trends across the 50 largest U.S. transit agencies from 2012 to 2019, fare-capping, especially on a monthly basis, has significantly increased ridership. While daily caps showed minimal impact, monthly fare-capping policies correlated strongly with ridership gains.
Enghouse Transportation and the Open Loop Solution
Toofan Otaredian, Sales VP at Enghouse Transportation, emphasizes that fare-capping is more effectively implemented with open-loop rather than closed-loop transit payment systems. “Open-loop systems allow transactions on universal payment networks like EMV (Eurocard, Mastercard, Visa), enhancing flexibility and accessibility. Conversely, closed-loop systems are limited to specific transit agencies or merchants, making implementation complex.”
Enghouse Transportation is at the forefront of transitioning agencies from closed-loop to open-loop systems, offering software solutions that have been successfully implemented in Europe and are now available in North America. This transition is facilitated under the Master Service Agreement of California’s Integrated Travel Project (Cal-ITP), enhancing operational efficiency and user experience in public transit.
Case Studies
Several transit agencies have successfully implemented fare-capping, significantly improving service accessibility:
Los Angeles Metro – Implements a cap of $5 per day or $18 per week, with standard fares at $1.75 across its extensive network of trains and buses. Learn more about LA Metro’s fare policies.
NEORide – A cooperative network across multiple states, has introduced the EZfare system, enabling fare-capping across 15 agencies, which include prominent cities like Cincinnati and Cleveland.
Statements from Leadership Ara Najarian, chair of the LA Metro Board of Directors, highlights that fare-capping ensures affordability and accessibility, making transit more attractive to residents of LA County. Katherine Conrad, director of NEORide, anticipates expanding the EZfare system to allow a unified user experience with coordinated e-ticketing and fare-capping across their network.
Fare-capping represents a strategic innovation in public transit, aiming to make travel more equitable and convenient. As we continue to evolve our transportation solutions at Enghouse Transportation, we invite transit agencies to explore how such systems can benefit their operations and service delivery.
For more information on implementing fare-capping and other advanced solutions, speak to our business development representative directly at Ana.Stanca@enghouse.com.
Let’s make transit more accessible for everyone!
