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== Technology ==
== Technology ==
Fare capping takes advantage of the advanced capabilites of [[automated fare collection]] systems. Since the first implementation of fare capping in London in 2005, technology has matured significantly, leading to reduced costs. This maturity has allowed the expansion of fare capping to smaller operators. Larger operators have taken advantage of technological advances to extend fare capping to larger areas, perform more precise calculations for complex trips, and integrate between multiple modes of transport.


== Impacts ==
== Impacts ==
Fare capping is frequently cited as a method to improve the [[social equity]] of transport fares.<ref name=":2" />{{Rp|page=9}} A 2022 analysis of United States transport operators concluded that in addition to improving equity in transit fares, fare capping can also reduce transport operators' expenses in handling cash, and can contribute to an easier experience for passengers.<ref name=":2" />{{Rp|page=42}}

Fares, and fare capping, can be used by transport operators to influence their passengers' behavior, and therefore the [[Patronage (transportation)|ridership]] of their services. In a 2020 [[behavioral economics]] analysis conducted by the [[University of British Columbia]], the authors argued that transport operators must carefully consider their messaging around fare capping, as it can have significant positive or negative impacts on behavior.<ref>{{Cite journal |last=Byfuglien |first=Andrea |date=2020 |title=Encouraging sustainable transportation through behavioural insights |url=https://sustain.ubc.ca/about/resources/encouraging-sustainable-transportation-through-behavioural-insights-study-assess |journal=UBC Sustainability Scholars Reports |access-date=2023-12-26}}</ref>


== References ==
== References ==

Revision as of 00:36, 27 December 2023

Fare capping is a feature of public transport fare collection systems. Fare capping credits the cost of fares for individual trips towards the cost of an unlimited pass, limiting the cost of fares that passengers pay.

Concept

Fare capping enables public transport passengers to pay the lowest possible fare for their trips over a period of time. Passengers pay a single-ride fare for each trip they make within a certain period, such as a day or a week, until a certain threshold is met. This threshold may be a certain number of trips, or a monetary value. After the threshold is met, all rides for the rest of the period are free or discounted.[1] This cap is often equivalent to the price of the comparable unlimited pass.[2]: 380 

Fare capping is often presented in contrast to unlimited-ride passes, which are offered by many transport operators. Passes are favored by commuters and other frequent public transport users for their convenience and cost savings, but they must be purchased in advance at a significant upfront cost. Fare capping eliminates the need to purchase passes in advance, which may be a significant burden for both passengers and transport operators.[1][3]: 8 

History

The Washington Metropolitan Area Transit Authority proposed a fare capping program in 2003, shortly after the introduction of the SmarTrip fare card. WMATA was unable to adapt its back-office systems for the complex fare structure of the Washington Metro, and the proposal was abandoned.[3]: 11 

An early implementation of fare capping was in 2005, by Transport for London.[2]: 377  At its introduction, fare capping in London was available for Oyster card users only, and was valid on local services including the Underground and buses. The price cap for Oyster card users was set at the price of an equivalent one-day, unlimited-ride Travelcard.[4] TfL has expanded its fare capping system since its introduction, adding 7-day caps and contactless bank card support in 2014.[3]: 11 

Another early implementation of fare capping in Europe is in Dublin, starting in 2012. The Dublin fare capping system, using the TFI Leap Card, was expanded to the entire Dublin transport network beginning in 2013. Trips on Dublin Bus, Luas, and Iarnród Éireann services are covered.[5][3]: 11 

In the United States, two early examples are AC Transit and the Santa Clara Valley Transportation Authority, both in the San Francisco Bay Area, in 2012 and 2014 respectively.[2]: 379  AC Transit and VTA operate in the same region, and both use the Clipper card, but their fares and fare caps are separate.[6]

More recently, fare capping was introduced by the two largest transit agencies in the United States,[7] the New York MTA and Los Angeles Metro, in 2022 and 2023 respectively. New York's weekly fare cap is available for OMNY and contactless bank card users, and is valid on the Subway, local buses, Select Bus Service, and the Roosevelt Island Tramway.[8][9] Los Angeles' fare cap is available exclusively for TAP card users, on Metro Bus and Metro Rail services.[10]

Technology

Fare capping takes advantage of the advanced capabilites of automated fare collection systems. Since the first implementation of fare capping in London in 2005, technology has matured significantly, leading to reduced costs. This maturity has allowed the expansion of fare capping to smaller operators. Larger operators have taken advantage of technological advances to extend fare capping to larger areas, perform more precise calculations for complex trips, and integrate between multiple modes of transport.

Impacts

Fare capping is frequently cited as a method to improve the social equity of transport fares.[3]: 9  A 2022 analysis of United States transport operators concluded that in addition to improving equity in transit fares, fare capping can also reduce transport operators' expenses in handling cash, and can contribute to an easier experience for passengers.[3]: 42 

Fares, and fare capping, can be used by transport operators to influence their passengers' behavior, and therefore the ridership of their services. In a 2020 behavioral economics analysis conducted by the University of British Columbia, the authors argued that transport operators must carefully consider their messaging around fare capping, as it can have significant positive or negative impacts on behavior.[11]

References

  1. ^ a b Chalabianlou, Reza; Lawrence, Adam; Baxter, Brian (2015). A review and assessment of fare capping as a passenger incentive mechanism for Australia and New Zealand (PDF). Australasian Transport Research Forum.
  2. ^ a b c Hightower, Ashley; Ziedan, Abubakr; Crossland, Cassidy; Brakewood, Candace (2022-10-01). "Current Practices and Potential Rider Benefits of Fare Capping Policies in the U.S.A." Transportation Research Record. 2676 (10): 376–390. doi:10.1177/03611981221089572. ISSN 0361-1981. Retrieved 2023-12-24.
  3. ^ a b c d e f Pettine, Amy; Rosenblum, Eryn; Manford, Brian (2022-02-25). Fare Capping: Balancing Revenue and Equity Impacts. Washington, D.C.: Transportation Research Board. doi:10.17226/26510. Retrieved 2023-12-24.
  4. ^ "World first as daily price capping on Oyster Pre Pay brings benefits to passengers" (Press release). Transport for London. 2005-02-16. Retrieved 2023-12-24.
  5. ^ "Determination order for the introduction of Leap card multi-operator (Dublin Bus, Iarnród Éireann and Luas) daily and weekly capping rates" (PDF). National Transport Authority. 2013. Retrieved 2023-12-26.
  6. ^ Fleisher, Arielle (2019-05-07). "Solving the Bay Area's Fare Policy Problem" (PDF). SPUR. p. 35. Retrieved 2023-12-26.
  7. ^ "2022 Public Transportation Fact Book" (PDF). American Public Transportation Association. January 2023. p. 32.
  8. ^ "Frequently Asked Questions: Fare cap". OMNY. Retrieved 2023-12-26.
  9. ^ Nessen, Stephen (2023-09-07). "MTA eases rules for 'fare capping' on NYC subways, buses". Gothamist. Retrieved 2023-12-26.
  10. ^ "Our new simpler fares began July 1". The Source. 2023-06-01. Retrieved 2023-12-26.
  11. ^ Byfuglien, Andrea (2020). "Encouraging sustainable transportation through behavioural insights". UBC Sustainability Scholars Reports. Retrieved 2023-12-26.