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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Andrea Packer, Director of Communications |
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Kensey Kunkel, Manager of Business Dev. and Sales |
TITLE:
title
Promotional Fare Request: Ridership Task Force Initiatives
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Approve the promotional fare request for three targeted campaigns - route-targeted direct mail, free fare with boarding pass, complimentary pass for friends and family of UTA employees - to promote ridership as the Authority recovers from the COVID-19 Pandemic.
BACKGROUND:
As Utah’s economy continues to recover from the pandemic and as UTA seeks to bring ridership back, the UTA ridership recovery team recommends implementing targeted fare promotions. The promotions would start upon Board adoption and extend through mid-year 2022.
UTA Board Policy requires approval of all promotional fare requests.
DISCUSSION:
The following promotions are recommended:
Route-Targeted Direct Mail
• Specific routes will be identified and targeted throughout the UTA Service Area
• The promotion is currently scheduled for September-October 2021
• Resident within ¼ mile of each specified route will receive a post card that includes 2-free ride coupons
o Postcard will be route specific
o Coupon will indicate that the trip must start on the bus route; rider is eligible to receive a transfer
o Rider must place the coupons in the farebox
o All coupons will be printed with an expiration date approximately 4-6 weeks after delivery to households
Free Fare with Boarding Pass
To coincide with the grand opening of the new TRAX Airport Station, UTA will accept a person’s boarding pass as transit fare
• Estimated opening is November and the promotion will run for 3 months
• The traveler’s boarding pass is valid as transit fare on the entire UTA system except for Ski, SLC-PC Connect, and Paratransit Services
• The date on the boarding pass must match the date that the person is riding
• The promotion is valid for travelers only
Complimentary Pass for Friends and Family of UTA Employees
• Complimentary transit passes will be made available to employees to give to friends and family
• The passes will be in the form of an electronic fares card and will be valid for 5-days upon first tap
• The passes will be valid on the entire UTA system except for Ski, SLC-PC-Connect, and Paratransit Services
• Passes must be used within 1 year
In support of the Ridership Recovery Team, with the intent to promote ridership, staff recommends that the Board approve the promotional fare request(s) as outlined above.
ALTERNATIVES:
Decline to approve some or all the promotional fare requests and do not proceed with campaigns
FISCAL IMPACT:
Total fiscal impact is estimated to be between $78,500 and $112,000.
Route- Targeted Direct Mail
The value of this promotion is estimated to be between $28,000 and $42,000:
• Up to 70,000 flyers will be distributed
• Historical data indicates that the utilization rate of route specific marketing is 4%-6% of total flyers distributed
• The day pass rate of $5.00 was used to calculate the fare
Free Fare with Boarding Pass
The value of this promotion is estimated to be between $28,000 and $40,000
• Sales revenue for 2019 was used as the data source
• Assumes that TVM sales revenue during the promotion will be between 45%-65% of the average 2019 monthly sales revenue
Complimentary Pass for Friends and Family of UTA Employees
The value of this promotion is estimated to be between $22,500 and $30,000
• 10,000 passes will be made available for distribution
• Estimates that 60-80% of the passes will be utilized by those that receive them
• The group pass rate of $3.75 was used to calculate the fare
ATTACHMENTS:
None