A new report to Calgary city council indicates that extending the validity of single-use Calgary Transit fares from 90 minutes to two hours would result in an annual revenue loss of approximately $2 million. The report, scheduled for presentation on Tuesday, highlights that while the financial impact is modest, the city is still recommending the change based on a councillor's motion earlier this year.
Revenue Impact and Customer Behavior
According to the report, the estimated reduction in fare revenues is based on observed and expected changes in customer behavior. Despite the dip, the city sees value in enhancing the customer experience. The extension would increase the perception of fare value among users who pay with cash or tickets.
Data from Calgary Transit's My Fare mobile ticketing app reveals that less than two percent of single-use ticket customers purchase a second ticket within two hours of their initial purchase. Additionally, just over one percent activate a second ticket between 120 and 150 minutes after the first activation. This translates to about 500,000 trips per year, representing roughly 0.5 percent of all Calgary Transit trips.
Councillor's Motion and Community Needs
The proposal originated from Ward 12 Coun. Mike Jamieson, whose southeast ward currently lacks CTrain stations. Jamieson argued that 90 minutes is often insufficient for transit users on the city's outskirts to complete their journeys, which may involve multiple bus and train connections. He described a 30-minute extension as reasonable, especially given Calgary's rapid growth and expanding footprint.
Jamieson noted that residents in his ward often need to take a bus to a train and then another bus, which takes more time. The report states that the extension could benefit approximately two percent of Calgary Transit customers who purchase single-use tickets, with an additional 1.4 percent potentially changing their travel habits to complete more trips within the two-hour window.
Low Customer Demand
Despite the potential benefits, customer demand for the change has been low. Between 2022 and March of this year, only 22 service requests were submitted to 311 asking for an extension of the transfer window. Travel behavior data from the Transit app shows that most customers complete their transfers within 33 minutes, and 98 percent finish within the current 90-minute window.
The report acknowledges that the foregone fare revenue is likely to increase in future years. However, administration recommends proceeding with the change to improve customer satisfaction and fare value perception.
