Harris Foulkes

No Clear Correlation Between Fare Revenue and Ridership

/0 Comments/in , , /by Harris Foulkes
Share on Facebook
Share on Twitter
Share on
LinkedIn
+

In recent weeks, many MBTA riders have expressed frustration about the T’s recent fare hike. In fact, some riders are volunteering to stand on platforms and lead a conversation about what riders can do to roll back the hike. However, the T is unlikely to budge. Even when ridership declines for a period, fare revenue continues to climb.

The last three fare hikes occurred in 2012, 2014, and 2016. While all three led to a decrease in unlinked passenger trips the following year, they generated an increase in fare revenue. In fact, fare revenue increased every year from 2007-2017, with the exception of 2010. Further, the largest increase in fare revenue actually came in a year in which ridership declined. According to Pioneer Institute’s MBTAAnalysis.com, from 2012 to 2013, fare revenue increased by 19.7% even as ridership decreased by 1.6%. Moreover, when ridership grew by 7% in 2011, its largest increase between 2007 and 2017, fare revenue only rose by 2.2%. When the T implements Automated Fare Collection 2.0 and works the early bugs out of the system, even higher revenue can be expected.

While some riders feel service quality hasn’t improved enough to merit a fare increase, state law allows the MBTA to raise fares no more than 7 percent once every two years. Further, riders should be aware that in 2017 the T was the fourth largest transportation network in the United States in unlinked passenger trips, but ranked sixth in total fare revenue. 

However, the fare revenue per unlinked passenger trip increased by 60 percent between 2007 and 2017, which is nearly 20 percentage points more than its closest peer system. While a fare hike is nothing new, riders are right to demand that it correspond with improved service.

Get Our Fix the T Updates!

Related posts:

Pioneer Institute Statement on MBTA Service Cuts

Even as MBTA ridership and revenue have been gutted by the COVID-19 pandemic, the system remains a lifeline for so many residents in the Greater Boston area, especially those working in essential services like health care or in industries most impacted by the pandemic such as the restaurant sector.  Facing a crisis of this magnitude, T leadership must first do its all to rethink how it delivers services before reflexively making cuts.

Public Comment on I-90 Allston Multimodal Project

Last year, Pioneer Institute proposed that the Massachusetts Department of Transportation (MassDOT)  revise its Scoping Report on the I-90 Allston Multimodal Project and recommend an additional option - a modified at-grade option for the throat area - to the Federal Highway Administration (FHWA).  The Institute believed then and continues to believe that an all at-grade design will shorten construction time, lower costs, create fewer negative economic and congestion impacts, and improve neighborhood access to parkland along the Charles River.

Clearing Boston’s Throat: What the I-90 Allston Project Portends for Metro West Commuters

0 Comments
/
Join hosts Joe Selvaggi and Pioneer Institute’s Mary Connaughton, and guest, former Mass. Secretary of Transportation Jim Aloisi, as they discuss the I90 Allston Multimodal Project, its long-term benefits, and their concerns for the metro west commuters and communities during the project’s decade-long construction.

COVID-19 Silver Lining: MBTA Takes Advantage of Ridership Lull to Accelerate $8.5 Billion Modernization Program

Pioneer Institute congratulates the Fiscal and Management Control Board (FMCB) and MBTA management for taking advantage of the precipitous ridership declines due to the COVID pandemic to dramatically accelerate ongoing construction projects.

A Time to Build

0 Comments
/
The MBTA is taking advantage of anemic low ridership from the…

Open Letter to MassDOT Board Regarding I-90 Allston Multimodal Project

0 Comments
/
Read Pioneer's Open Letter to MassDOT on the I-90 Allston Multimodal Project, Boston, MA National Environmental Policy Act Review Scoping Report: All At-Grade Option and 8-lane Turnpike – Throat Area

Survey Suggests Demand for Telecommuting After COVID-19 Crisis

Citing an avoidance of the commute and more flexible scheduling, nearly 63 percent of respondents to Pioneer Institute’s survey, “Will You Commute To Work When The COVID-19 Crisis Is Over?” expressed a preference to work from home one day a week, and a plurality preferred two to three days a week, even after a COVID-19 vaccine is available. Respondents cite social isolation as the biggest drawback of remote work. The survey was conducted from April 22nd to May 15th, and received responses from over 700 individuals.

It’s Time for the MBTA to Actively Engage Riders to Understand Their Commuting Plans

0 Comments
/
The MBTA should conduct a survey of mTicket app users regarding their future plans. Some may never work in offices again. Some will certainly do some workdays in the office and some at home. Others will be in offices and back to business as usual at some point. Using their responses, the T can calculate ridership and determine projected revenue.

Study Highlights Transit Agency Best Practices in Response to COVID-19

The MBTA is taking a number of important steps to mitigate risks associated with the coronavirus, but some transit agencies around the country - from Philadelphia to San Francisco - have done significantly more, according to a new study that highlights the best practices of U.S. transit systems in response to COVID-19.

WILL YOU COMMUTE TO WORK WHEN THE COVID-19 CRISIS IS OVER?

How will you look at commuting in the future? This survey will ask over 30,000 people how their attitudes and habits will change. Please be part of our work to understand the changing world around us.

MassDOT’s West Station design plans fall one track short

0 Comments
/
In 2014, MassDOT proposed the construction of West Station, a…

Open Letter to MA Governor Charlie Baker Regarding Boston Commuters from Points West

0 Comments
/
In an Open Letter to the Massachusetts Governor, Pioneer Institutes presents its concerns about the I-90 Allston Multimodal Project, and its impact on those who will be most affected during the project’s construction

A Control Board Equipped for the Next Phase of MBTA Reform

In a new policy brief out today, Pioneer Institute calls on the Massachusetts Legislature to extend the life of the MBTA’s Fiscal and Management Control Board beyond the current fiscal year ending on June 30, and adjust it to address the agency's new challenges.

VIDEO: Reduce Carbon Emissions with Perq!

0 Comments
/
In the final video of a new three-part animated series, Pioneer Institute explores how the MBTA's commuter benefit program called Perq saves you money, lowers your tax burden, and shortens your commute - all while helping the planet.

VIDEO: Attract & Retain Top Employees Through Perq!

0 Comments
/
In part two of a new three-part animated video series, Pioneer…

Press Release: Pioneer Releases First in Series of Videos Promoting Commuter Benefits Program

Watch Pioneer's first animated video promoting Perq, the MBTA’s commuter benefits program, which can help individuals save money and restore work/life balance.

Study Calls for Easing MBTA Procurement Restrictions and Beefing Up Project Management Capacity

Reforms needed if T is to achieve increased capital spending…

Harris Foulkes is a Roger Perry Transparency Intern at Pioneer Institute and a rising sophomore at Amherst College studying Economics.