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Originally Posted by denconyny
Raising fares on public transportation travel such as this is essentially a tax hike on those who travel with such..... and since those with lesser incomes are usually a majority of those who use public transportation, fare hikes on public transportation is essentially aiming to be a poor tax.
Economics 101 states that as price increases, demand decreases.... and vice versa. If RTD is somehow in need of more revenue, committing to lower fares (and better service) is a better option to consider since this will increase demand, and at some point more users, even with the lower fare, could easily produce more revenue overall than having higher fares with less users. Commercial air carriers around the world learned this lesson a long time ago.
Yes, there are factors such as price elasticity and scale of economy that play along with this, but still it's a shame to see an RTD bus at a reasonable hour in the middle of the city pass by and inside are only about 3 passengers...... 3 times the $2.25 fare will bring in $6.75.... but maybe charging a $1.00 fare could just as easily bring in 12 passengers..... and revenue gets doubled.
Boo on RTD if they have to resort to any sort of fare increase.

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Yes, because static, fixed-price funding sources are such a good idea, i.e. the gas tax.

If RTD was mandated to escalate fares based on inflation it would be interesting to see where we would be at. Heck, RTD charged $1.10 in 2002, so that would be $1.49 today. Which shows that RTD fares have grown faster than the rate of inflation. The following question is if we think that the RTD system is better today than it was in 2002 given the increase in fares.
Using the airline industry as a comparison doesn't really work because the airlines had to figure out that offering cheaper fares does drive growth; but when it doesn't cover your operational costs, let alone total costs, it's not a sustaining strategy. Instead, airlines figured out that industry consolidation, slashing routes, frequency, fleets, manpower, and corporate costs go hand-in-hand with discounting prices. That's a sustaining strategy.
How about we kill all the low-performing routes in RTD's system and slash fares in order to remain revenue neutral? It will certainly be more convenient for the 0, 15, 16, and the rail lines and ridership will undoubtedly grow on them (which is kind of what this fare structure will do as the train is going to end up being as cheap as 'da bus), but the feeder routes will suffer.