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Why Real-Time Matters More Than On-Time in Public Transit
February 26, 2026
How Public Transit Riders Expect to Pay and Travel in 2026
February 27, 2026

What’s Working for US Transit Agencies in 2026: Ridership Recovery & Innovation

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  • Blog
Tags
  • account-based ticketing
  • Automated Fare Collection (AFC)
  • Contactless Payments
  • data management
  • Journey Planning
  • public transit
  • transit agencies
  • Transit Fare Collection

#image_title

U.S. transit agencies have seen a steady and, at times, dynamic recovery from the pandemic era. The reasons for this are multi-causal, driven by targeted investments, technology adoption, and a new sensitivity to rider needs. After dramatic ridership declines in 2020 and 2021, the sector is now reporting robust growth across different modes of transportation. This trend is being supported by transit agency ecosystem partners, like Enghouse Transportation, with technological solutions such as Automated Fare Collection and Mobility as a Service that enable agencies to modernize fare systems, streamline operations, and improve rider experience.

U.S. Transit Ridership Is on the Rise

Recent data from the American Public Transportation Association (APTA) shows that total U.S. transit ridership recovered to approximately 85% of pre‑pandemic levels by early 2025, with agencies delivering roughly 7.7 billion passenger trips in 2024, an increase of nearly 7% over 2023. This recovery has been broad, spanning buses, rail networks, and demand-response services:
  • Bus ridership: this is a critical backbone of urban mobility and connectedness, and it has recovered 85% ground lost since the pandemic.
  • Demand response services: including paratransit and flexible routing, have recovered at around 93% of pre-pandemic ridership.
  • Small cities (under 100,000 population): approaching 88% recovery, demonstrating how rising ridership numbers are not limited to major metropolitan centers.
Data from the Federal Transit Administration (FTA) report that transit trips in the U.S. grew 17% between 2022 and 2023. Some individual agencies have experienced rider number fluctuations often connected to fare increases. These policy shifts often reflect broader funding pressures facing some of the larger operators, such as New York’s MTA.

The Changing Nature of Ridership

Despite the progress, ridership growth patterns are far from uniform. The rise of hybrid and remote work is continuing to suppress office occupancy, which is continuing to change commuter behavior. Research from APTA shows that office attendance is at about 52% relative to pre-pandemic levels, while overall transit usage has rebounded faster. This trend is part of a broader transformation in how people are using transit:
  • Off‑peak and weekend trips: Non-commute travel, such as leisure, errands, and social reasons, are expanding faster than traditional office-hours commuting is recovering.
  • Multimodal travel: Travelers are increasingly combining buses, trains, bike share, and micro-mobility options to complete journeys.
  • First-mile/last-mile connectivity: This remains a priority, and agencies that can integrate these services with core transit are seeing stronger ridership rebounds.
Technology allied to service innovations are playing a key role in boosting ridership. Not only are new tools enabling agencies to move people more efficiently, but they are making the experience more user-friendly.

Modern Technology & Passenger Experience

Seamless, Contactless Fare Payments

Contactless and digital payments are becoming near-standard expectations among riders. Systems that can accept mobile ticketing, contactless bank cards (EMV), and account-based ticketing ensure a faster boarding process. Dwell times can be reduced which improves service reliability and strengthens rider confidence.

The shift towards cashless, contactless payment options is translating into measurable benefits:

  • Riders enjoy simpler payment methods and a wider range of options.
  • Agencies reduce friction during fare-collection and enjoy lower operational costs, while also enabling extra features such as fare capping and pay-as-you-go (PAYG)

Enghouse Transportation’s Automated Fare Collection (AFC) and ticketing solutions are designed to support this evolution. This enables agencies to move away from expensive legacy hardware towards electronic fare collection with integrated mobile payments and open loop ticketing.

Real‑Time Passenger Information

The integration of real-time data into rider communications is one of the most significant developments in public transit over recent years. Mobile apps and digital signage provide live bus and train times, reduce uncertainty and make transit more appealing to a wider range of riders.

Real-time systems can also support trip reminders, ensuring that riders remain informed and engaged. Deploying real-time information sees higher rider satisfaction and perceptions of reliability. With greater trust underpinning sustainable ridership growth, enhanced passenger information is a key element of the current bounce back.

Predictive Analytics & Operations Optimization

Predictive analytics are a game changer for transit agencies. Using historical trends and live data, they can anticipate peak periods and adjust service delivery for better fixed route scheduling, demand response planning, and dispatch optimization.

Used intelligently, predictive analytics can boost efficiency and rider trust.

Smart operational tools can support broader goals such as route optimization, transit efficiency, and resource allocation.

Embracing Mobility as a Service (MaaS)

Mobility as a Service (MaaS) and integrated journey planning platforms are enabling agencies to expand beyond traditional models to better serve their customers. These platforms can unify trip planning, fare payment, and multimodal routing into a single user experience. This supports moves towards more sustainable urban mobility and gives residents a genuine alternative to costly private car dependency.

Riders increasingly value services that combine schedules, maps, mobile ticketing, and payments within a single interface. This makes public transit part of an end-to-end journey platform.

Innovations In Fare Systems

Enghouse Transportation has been active in developing modern fare systems that meet the needs of dynamic agencies and their riders.

  • Our AFC solution supports smart cards, contactless payments, mobile ticketing, and account-based ticketing. This enables agencies to move away from paper tickets and cash dependence.
  • Partnerships with payment providers enhance capabilities for EMV and bank card acceptance that expand open loop ticketing options.
  • Transit agency investments into technology have moved beyond fare systems into Mobile Intelligence Platforms and MaaS integrations. This aligns with trends toward full-stack mobility solutions

These innovations deliver real improvements to the traveler experience and also supports long-term revenue management goals while simplifying operations. Fare system innovations can support agency sustainability and ridership growth goals.

Challenges Still to Address

While the trajectory of increased ridership is cause for optimizing, agencies continue to confront a range of complex challenges:

  • Financial sustainability remains precarious in many cities and regions, with some agencies adjusting budgets and increasing fares.
  • Service quality perceptions, particularly regarding safety, reliability, and cleanliness are continuing to influence rider decisions.
  • Working patterns and return-to-office trends are uneven and evolving. This is particularly impacting commuter-dependent routes in major urban centers.

However, agencies that continue to innovate and invest in the latest technology are well placed to address these challenges. Agencies that are using contactless and mobile fare systems and can offer real-time customer information are seeing the strongest ridership recoveries.

Recovery, modernization, and growth

Data increasingly demonstrates that passenger numbers are strengthening across the US, with riders increasingly expecting seamless travel experiences. Agencies that innovate in areas such as Automated Fare Collection, digital payments, and real-time information, and Mobility as a Service, are well-placed to meet changing customer expectations.

Enghouse Transportation’s range of transportation solutions are enabling agencies to meet riders expectations and build efficient systems ready for future mobility demands.

Speak to our expert team to discuss your requirements.

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