1. Managing Farebox Ratio
Ways to Create Revenue and Reduce Expense

2. Price
Promotion
Product

3. PRICE Raise fare price Incremental change Review/eliminate discounts
Consider elasticity by user groups (prisoners vs. students)
Lower fare price
Have a BIG sale
Make BIG changes
Consider elasticity by groups and potential discounts (students, commuters)
When raising prices you want to minimize the response to the price change. The best way to do this is to make small changes on a regular periodic basis such as annually.
Before raising all prices, consider the reasons that you have discounts. Is the discount mandated? Do you discount a certain type of fare media, such as a multi-ride pass, when all that is really needed is convenience of payment? Do your discounts that reward frequent use, such as a monthly pass, really produce more income?
Do you have certain groups that would ride regardless of fare price so long as it is competitive with alternatives?

4. Pass & Tickets Sales General Public Account Sales & Group Sales
Retail - grocery or convenience stores near major bus stops
On board
Account Sales & Group Sales
CalWorks
Regional Centers
Human Services Agencies
Medical Providers
Schools

5. Special Transit Contract Fares
The State Controller’s Uniform System of Accounts defines categories of fares that you can charge. These include special contract fares paid for a specified group by someone other than the passenger based on a contract. A good example of this is a contract between a transit system and a college or university that allows all students displaying the college ID to ride without paying a fare. The Low Carbon Transit Operating Program (LCTOP) funding can be used to start a program with your local community college, and are available for up to five years. The LCTOP funds then become an addition to your farebox revenue. The same idea can be applied to other groups such as charter school students, employee groups, or patient groups.

6. Route Guarantee
Guarantees a minimum level of revenue for a given route.
Benefits a specific entity such a hospital, school, etc.
Fares are still collected from passengers.

7. Auxiliary Transportation Revenue
Exterior / Interior Advertising
Package Express
This Photo by Unknown Author is licensed under CC BY-SA

8. Promotion Pass & Schedule Locations Website Social Media On Board
Exterior
Shelters
Other media advertising
Price is one of the three P’s, or variables, that may affect your fare revenue. So, consider the other variables, too. Are you promoting your product and price? Is your product a good fit for the community? (Example of DAR where there should be fixed route

9. Product Do you have the right product for the situation?
Can you add a premium service?
Can you eliminate unproductive routes, schedules, services?
Premium service examples: shuttles, tours, subscription service