TRANSIT RIDERSHIP RESPONSIVENESS TO FARE CHANGES

Abstract

The Simpson and Curtin Formula which predicts percentage decrease in ridership as a function of the percentage increase in fares has now reverted into the rule of thumb that transit ridership will increase (decrease) 0.3% for every 1% decrease (increase) in fare over their previous level. This paper compiles the current state of knowledge on the size of transit-fare elasticities obtained from demonstrations and demand models. The principal findings are presented and summaries are given. Transit demand is inelastic to fare changes. Elasticities for fare increases do not differ from those for fare decreases. Fare-free elasticities are slightly smaller than comparable reduced-fare elasticities. Small cities have larger fare elasticities than large cities. Bus travel is more elastic than commuter- and rapid-rail travel. Off-peak fare elasticities are double the size of peak-fare elasticities. Short-distance trips are more elastic than long-distance trips. Intrasuburban trips are 4 times more elastic than radial trips on materials. Fare elasticities rise with income and fall with age. Of all trip purposes, the work trip is the least elastic. Travel by the elderly is slightly more elastic than average. Promotional fare elasticities are slightly larger than long-term fare elasticities. The differences in fare elasticities noted highlight themore » futility of using flat-fare systems as revenue producing agents.« less

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