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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Kensey Kunkel, Manager Business Development & Sales |
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Stacey Adamson, Sr. Sales Representative |
TITLE:
title
Promotional Fare Request: Youth Rider’s License
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Approve the promotional fare request allowing UTA to sell the 2022 Youth Rider’s License at the price point of forty-nine dollars ($49).
BACKGROUND:
The Youth Rider’s License (“RL”) pass gives youth ages 6-18 access to an unlimited premium transit pass, valid on all UTA services (except for Ski, Park City, and Paratransit services) from June 1 thru August 31. The RL pass is an electronic pass and can be purchased through UTA Customer Service, online at rideuta.com, and the GoRide mobile application. UTA has made the RL pass available to youth each summer since 2014. Based upon community feedback and to encourage ridership, the current price point is $49.
In 2021, about one thousand (1,000) RL passes were sold. The majority (70%) of passes were purchased in the form of an electronic fare card (“EFC”) also known as a “tap-pass”. The remaining passes purchased were mobile passes. Ridership data is not collected from mobile pass use, because the user does not tap their pass. However, data captured from the EFC pass showed the following use patterns that are in line with historical use of the pass:
• Most youth traveled on regular bus during off peak hours (10am-3pm; 7pm-12am)
• The program discount did not exceed 25%. This was calculated by comparing the retail use of the pass (pay-per-trip value) to total revenue received
• Users of the pass took an average of twenty-one (21) trips each summer in 2021
UTA Fare Policy 4.1 requires board approval of all promotional fare pricing and pilot programs.
DISCUSSION:
UTA recommends continuing to offer the RL pass at the price point of forty-nine dollars ($49). The RL pass will be valid June 1 through August 31 and will be available for purchase through UTA customer service, online at rideuta.com, and the GoRide mobile app beginning May 15th.
Staff estimates that total pass sales in 2022 will be between 1,500 and 2,000, and ridership will be between 31,500 to 42,000 trips. This assumes that UTA’s RL sales will increase 50-100% as compared to 2021’s total sales (1,000).
ALTERNATIVES:
1. Increase the price point of the RL. This may result in a decrease in pass sales and a decrease in overall revenue and ridership, as can be seen in historical RL sales data
2. Eliminate the pass offering, foregoing any anticipated revenue and ridership
FISCAL IMPACT:
In 2021, UTA sold about one thousand (1,000) RL passes. It is estimated that 2022 revenue will be between $73,500 and $98,000, assuming UTA’s RL sales increase by fifty to one hundred percent (50-100%) as compared to 2021’s total sales.
ATTACHMENTS:
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