FARE STRUCTURE MANAGEMENT MAXIMIZES NEW TECHNOLOGY SUCCESS

Technology in automatic fare collection (AFC) has advanced significantly over the past decade. New technologies and system concepts such as magnetic tickets and contactless smart cards, regional farecards, wireless communications, sophisticated central computer systems, downloadable software, automatic distribution of value and benefits (Autoload) and electronic financial clearing and settlement have greatly increased the capabilities of today's AFC systems. Unfortunately, simply installing systems with these advanced features will not guarantee the success of a new technology. Typically new systems are initially commissioned with the existing fare structure in place due to phased installation of the equipment throughout the system. What is done with the fare policy after all the equipment is installed is critical to the system's success from both the transit agency and patron's perspective. As an example of a successful system implementation, the New York City Transit (NYCT) MetroCard will be studied to show how innovative ideas implemented using advanced technology can increase ridership, improve customer service, and integrate once independent agencies into one cohesive system. NYCT is an excellent case study on how to make a transit system grow by combining technology with creative fare policies. Three key concepts can be derived from this analysis. First, integration of all modes of transportation into one system provides fertile ground for creating seamless travel throughout a city or region. The integration of the Bus and Rail Systems in New York City was the foundation on which all new capabilities were built. Second, expansion to other transit operators in the region further increases the attractiveness of the new fare media to passengers and forces independent agencies to work together to improve service to their patrons. Last, but not least, is innovation. New technology provides the infrastructure and tools to support endless ticketing options and incentives. We are not limited by technology but by creativity and policy.