NORMATIVE FRAMEWORK FOR TRANSIT FARE POLICY-MAKING.

This paper presents a normative model for transit fare policy-making. Key elements of the model are: establishing service policy and ridership objectives, developing an overall financial philosophy, making fare level decisions, making structural pricing decisions, and designing implementation strategies. In general, the overall objectives of a transit agency regarding service quality and ridership levels should be the main impetus behind any fare program. Specific cost-based and value-based fare strategies should be considered. Implementation involves making the adopted fare strategy work. Key implementation issues are: fare payment and collection techniques, necessary service changes, marketing and promotional programs, and consensus-building. The model presented calls for feedback among these steps to allow an iterative, yet comprehensive, approach to fare policy-setting.