Title

EFFECTS OF FARE INCENTIVES ON NEW YORK CITY TRANSIT RIDERSHIP

Document Type

Journal Article

Publication Date

2000

Subject Area

policy - fares, mode - bus, mode - rail, mode - subway/metro, mode - subway/metro

Keywords

Underground railways, Subways, Smart cards, Ridership, Patronage (Transit ridership), New York State Metropolitan Transportation Authority, New York City Transit Authority, New York City Transit, Metropolitan Transportation Authority (New York City), Intracity bus transportation, Integrated circuit cards, Incentives, Fares, Contactless fare cards, Chip cards, Bus transit, Automatic fare collection

Abstract

Over a period of 3 years starting in 1994, Metropolitan Transportation Authority (MTA) New York City Transit (NYCT) installed automated fare-collection technology systemwide and introduced MetroCard, an electronic fare card capable of storing value and time. Over a single year starting in July 1997, NYCT introduced the following fare incentives: (a) free intermodal transfers, (b) a discount on bulk purchase of value on MetroCard, (c) a reduction in the express bus fare, and (d) 7- and 30-day unlimited-ride MetroCards. (A 1-day unlimited-ride MetroCard was added in January 1999.) The effect of these fare incentives on subway and bus ridership is examined, and the changes due to the fare incentives are presented in the context of historical trends.