EFFECT OF THE FARE INCREASE OF JULY 1966 ON THE NUMBER OF PASSENGERS CARRIED ON THE NEW YORK CITY TRANSIT SYSTEM

Abstract

THE EFFECT IS EXPLORED OF THE NICKEL FARE INCREASE ON THE NUMBER OF REGULAR-FARE PASSENGERS CARRIED ON THE CITY-OWNED TRANSIT SYSTEM IN NEW YORK DURING THE YEAR FOLLOWING THE INCREASE. THE DIFFERENTIAL EFFECTS OF THE FARE INCREASE ARE EXAMINED AT VARYING TIMES OF DAY, BY DAYS OF THE WEEK, AND ON DIFFERENT KINDS OF RIDERS. IT IS CONCLUDED THAT WHILE THE ACTUAL PERCENTAGE OF DECLINE IN RIDING MAY INCLUDE MINOR EFFECTS OF FACTORS OTHER THAN THE FIVE-CENT INCREASE IN THE BASIC FARE RATE, THERE IS NO DOUBT ABOUT THE PROFOUND EFFECT OF THE FARE INCREASE IN REDUCING RIDING. AS A RESULT OF THE FARE INCREASE, TRANSIT RIDING IN THE 1967 FISCAL YEAR DECLINED NEARLY 2.5% ON THE SUBWAYS AND NEARLY 10% ON THE BUSES BELOW THE LEVEL OF THE 1966 FISCAL YEAR. THIS REPRESENTS A DECREASE OF ABOUT 100,000 TRIPS PER WEEK DAY ON THE SUBWAYS AND MORE THAN TWICE THAT NUMBER OF THE BUSES. THE EFFECT OF THE FARE INCREASE IS PERSISTENT BECAUSE, WHILE THESE PERCENTAGES ARE THE AVERAGE FOR THE YEAR, THE PERCENTAGE OF LOSS AT THE END OF THE YEAR WAS ONLY A LITTLE LOWER THAN EARLIER IN THE YEAR. THE EFFECT OF THE FARE INCREASE WAS NOT THE SAME ON ALL CLASSES OF RIDERS. JOURNEY- TO-WORK TRIPS WERE AFFECTED LEAST, WHILE WEEKLY MIDDAY AND EVENING TRIPS AND SATURDAY TRIPS WERE AFFECTED MOST. THERE WAS A GREATER THAN AVERAGE DECLINE IN RIDING AMONG LOWER INCOME GROUPS. THE DECLINE IN RIDING AMONG THOSE WHO PAY MORE THAN ONE FARE FOR A TRIP, OR WHO PAY A HIGHER RATE OF FARE, WAS GREATER THAN THE AVERAGE FOR ALL RIDERS.

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