Fare evasion in Public Transport
AGENDA Introduction of Italian Fare System Measuring the Evasion Rate
Preventive measures Fare inspection Conclusions
Who is ASSTRA? ASSTRA, is the Italian association of local and regional Public Transport companies. ASSTRA represents in Italy: 215 Transport companies 95% urban public transport 75% suburban and regional public transport 40,000 vehicles (bus and railways) 210,000 kms network 1.65 billion kms/year 100,000 employees 5,000 Italian municipalities 5.2 billion passengers a year
More than 8 billion euro1 turnover 1
1 Euro = 1.3521 USD (23rd March 2010)
Fare system National average Fares
euro1
Adult multi-ride fares
1.03
1-month pass
31.85 Operators by fare (%)
Adult multi-ride fares
% operators
Fare < 1 euro
18%
Fare = 1 euro
53%
Fare > 1 euro
29%
1-month pass
% operators
Fare < 30 euro
51%
Fare = 30 euro
16%
Fare > 30 euro
33%
1
1 Euro = 1.3521 USD (23rd March 2010)
Fare Growth (1) Growth in Adult multi-ride fares (index; 2002=100)
Source: ASSTRA
Fare Growth (2) Growth in 1-monthly pass (index; 2002=100)
Source: ASSTRA
Benchmark with Europe (1)
Source:UBS Prix et salaires (Price of a ticket for a 10-km-journey or at least 10 stations) 1
1 Euro = 1.3521 USD (23rd March 2010)
Benchmark with Europe (2)
Source: Earchimede (UK data) and ASSTRA elaboration.
AGENDA Introduction of Italian Fare System
Measuring the Evasion Rate Preventive measures Fare inspection Conclusions
What is Fare Evasion Rate in Public Transport? The evasion rate is the percentage of passengers inspected who did not have adequate proof of payment: • No ticket • Expired ticket • Defaced/altered ticket • Wrong zone/zone over-ride • No valid subsidized fare • Ticket not validated
Why is a relevant problem?
x THIS RESULTS IN
For Transport operators
Less revenue
For Passengers
Social iniquity
For Public finance
More money covering of TPL losses
Fare evasion rate In the past PT operators measure Fare evasion rate by the rate between evaders and controlled passengers Fare evasion (simple average) =
n.evaders *100 controlled . passengers
ASSTRA Fare evasion Survey Fare evasion (weighted average)
ASSTRA Statistical method The sample fare evasion survey consists in interviewing users getting off the vehicles in the main stops or stations.
At each site, interviews are WEIGHTED according to the number of descents in the site itself. Then the obtained
fare evasion rate is WEIGHTED. The investigated stops are selected on the basis of
passenger trip data.
The questionnaire (1)
The questionnaire is divided in three parts: 1) the first part is filled in exclusively by the interviewer and it gives general
information about the date of detection time, the detected line and the site of interview; 2) The second part collects information on the ticket - ownership, type, validity, use - and with regard to the trip – origin, destination, frequency, etc..; 3) The last section collects information on socio-demographic and behavioral characteristics of users.
The questionnaire (2)
General information about the interview Fare
User’s social and behavioral information
National Survey
20 Operators participate to the survey • March - May 2008 – The first fare evasion survey was conducted and the results are in the following slides; • March – May 2009 – The second fare evasion survey was conducted and the results will be published on September 2010; • March – May 2010 – The third fare evasion survey is currently being conducted.
Survey sample
Source: ASSTRA and UNICOCAMPANIA
Survey Results Fare Evasion Survey results are the following: NATIONAL RESULTS Type of service
Fare evasion (weighted average)
n° Operators
% of sample Transit Ridership
% of National Transit Ridership
Urban
19.1%
16
92%
82%
Suburban
22.8%
11
8%
18%
TOTAL
19.3%
27
The fare evasion rate is weigthed according with ridership Source: ASSTRA ASSTRA and UNICOCAMPANIA
Revenue gain from decreasing fare evasion Estimated revenue gain1 at different levels of evasion goals
Fare evasion rate 7%
Fare evasion rate 5%
Fare evasion rate 3%
€ 328,525,669.30
€ 385,498,098.19
€ 450,957,940.87
Source: ASSTRA and UNICOCAMPANIA
The revenue gain is calculated as the single trip fare times the total trip times difference fare evasion rate (the reference period "year“) Revenue gain
1
=
Single trip fare
1 Euro = 1.3521 USD (23rd March 2010)
x
Total trips
x
Difference Fare evasion rate
AGENDA Introduction of Italian Fare System
Measuring the Evasion Rate Preventive measures Fare inspection Conclusions
Fare system Number of operators by fare information 2007;% Fare information on website
100% 89%
Information brochure
84%
Toll free number Information on bus stop
79%
Information in the waiting room
79%
Information on the bus
79%
Information outside the bus
53%
Advertising on local newspapers
53%
Advertising on radio or tv
21% Source: ASSTRA
Where fare media may be obtained Km operating network Number fare vending points excluded automated fare vending
Urban and suburban 3,59 Km
Urban 0,56 Km
Km operating network /on-site1automated fare vending 38 Km
on-board automated fare vending /n° buses: 30 every 100 buses
Source: ASSTRA 1
on-site means automated fare vending at the bus stops or at stations
Fare Media Available
Source: ASSTRA
Marketing/Educational tools for Public Transportation In the last three year have you done advertising campaigns against fare evasion? Number of operators (%)
58% = YES
42% = NO
Have you performed educational projects in local public schools? Number of operators (%)
37% = YES
63% = NO Source: ASSTRA
AGENDA Introduction of Italian Fare System
Measuring the Evasion Rate Preventive measures Fare inspection Conclusions
Inspection Rate and Number of Personnel Inspection rate is the percentage of the transit operator’s passengers checked for proof of payment by fare inspectors. n. Ticket holders daily passengers
Urban: 0.5%
Suburban: 1.3%
Level of inspection effort measures the overall presence of fare inspectors in the system relative to the number of patrons Inspectors 1,000 daily passengers
Urban: 0.07 inspectors per 1,000 daily riders
Suburban: 0.28 inspectors per 1,000 daily riders
Source: ASSTRA
Type of inspection personnel Operators by (%):
Inspection personnel by type: 1. Effective inspectors; 2. Driver with overtime work; 3. Temporary Disabled Personnel.
Selecting inspection personnel: 100% Training: 100%
Bonus/Commission: 50%
Approaches to conducting fare inspection (1) Operators by (%):
INSPECTION TECHNIQUES Type of Inspection Personnel
Only on-board inspection: 32%
on-board inspection and at the bus stops/stations: 68%
uniformed: 100% Undercover: 42%
Covering the whole system: 63%
INSPECTION STRATEGY
Random inspections: 63% Targeting peak periods: 79% Targeting specific evasion problem areas: 100% 100% sweeps: 95%
Approaches to conducting fare inspection (2) 1) In some cases, do you switch off the stamping machines when inspectors get on bus? Number of operators (%)
68% = YES
32% =NO
2) In some cases, when the inspector boards a vehicle, do the vehicle operator secure the
doors to ensure that evaders exit the vehicle?
Number of operators (%)
58% = YES
42% =NO
3) In some cases, do you schedule on-board inspections and on-site inspections
at the same time?
Number of operators (%)
63% = YES Source: ASSTRA
37% =NO
Police Collaboration
Source: ASSTRA
Other Fare Evasion Indicators
Redemption Number of paid fines Number of total fines
33%
Cost Cost of Inspectors
2.8%
Total salaries and wages
Source: ASSTRA
AGENDA Introduction of Italian Fare System
Measuring the Evasion Rate Preventive measures Fare inspection Conclusions
Conclusions • In Italy Fare Evasion is a very relevant problem; • It should introduce a more efficient inspection plan or change the system of fare collection; • It should develop a good Marketing/Educational tools for Public Transportation
For any question
Elisa Meko, ASSTRA Economic, financial and Statistical office
[email protected] +39 0668603557
