5-Year Fare Policy and 10-Year Fare Collection Outlook
The TTC and York Region Transit (YRT) jointly developed a 5-Year Fare Policy and 10-Year Fare Collection Outlook, which were presented to the TTC Board in 2022. The objective of this work was to find opportunities for improvement in the fare structure, policies, and collection practices.
Since the completion of these two projects, the TTC has been working with Metrolinx and PRESTO to modernize fare payment options to facilitate the implementation of recommendations in the 5-Year Fare Policy and allow for more flexible fare rules and policy.
If you have any feedback or questions, please contact TTCFares@ttc.ca.
TTC 5-Year Fare Policy
Project Background
The TTC and YRT first began developing the 5-Year Policy in 2020 to explore opportunities to increase ridership after the COVID-19 pandemic. The TTC and YRT were committed to identifying opportunities to improve the current fare structure and policies to better serve customers. The key objective was to develop a complete fare policy that considered all fare options from zero-fare to full-cost recovery. The work identified policy goals such as equity, affordability, revenue and ridership. It also identified limits and opportunities in the current fare structure that affect fare policy decision making.
The TTC and YRT consulted with the public, including both transit riders (frequent and infrequent) and potential or non-riders through focus groups, an online survey, and a virtual town hall. The objective for consulting with transit riders and the broader public was to understand the public’s experience and perception of the existing fare system and understand their perception of the opportunities and constraints related to the fare system. Through this work, the TTC confirmed that the flat fare, age-based discounts, Fair Pass program, two-hour transfer and free transfers between subway, buses and streetcars are hallmarks for equity, affordability, and inclusion.
Based on feedback from the general public, focus groups, and internal and external stakeholders, seven strategic policies were formed. The strategic policies provided a forward-looking framework for decision-making around transit fares. These policies were used to evaluate the long list of fare options under consideration during this project, and these policies are also intended to be used to evaluate future fare options under consideration.
| Financial | Customer | Community | ||||
|
Financial Sustainability |
Affordability & Equity |
Mode of Choice |
Simplicity & Accessibility |
Integration |
Maximizing Benefits |
Collaboration & Transparency |
|---|---|---|---|---|---|---|
| The Fare Policy and all aspects of its implementation should ensure fiscal sustainability and improve resiliency so that customers may maximize the service benefits they receive. | The price of public transit should reflect customers' ability to pay. Minimizing cost as a barrier to travel wherever possible. | Public transit is a key part of a liveable city and should be the favoured mode for a variety of journeys. Encourage existing customer loyalty and new markets to use public transportation. | The customer proposition should be easily understood by all users. Customers should be confident that they will be charged the most appropriate fare for their journey. Advancements in technology should not leave customers behind. | Travel around the Toronto and York regions should be as intuitive as possible, regardless of the operator of the services that customers decide to use. | Fares should stimulate growth in demand and enable greater access to destinations. | The process for establishing fares will be conducted publicly to ensure agency accountability and enhance public trust. Rationale for policy should be clear to customers. Data will be publicly owned and used for planning, monitoring and reporting. |
The project team evaluated a long list of potential fare options from zero-fare to full-cost recovery. A key finding from this work is that fare options that benefit customers will come at a cost to the TTC. Fare capping and harmonizing fare types (e.g. youths, senior and low-income) are two fare options that provide the TTC with the opportunity to improve the existing fare structure and monitor their impacts. While these options show some revenue loss to the TTC, they provide maximum customer benefits and were also highly supported by customers.
| Fare Cap | A ‘cap’ will be set at a trip rate, which determines the maximum amount a customer will pay for transit in a given time period (e.g., day, week, month). Customers pay single ride fares as normal until the total amount they have paid reaches the trip cap amount. |
| Aligning Fare Types | Single ride fares for all fare type types (e.g., youth, seniors, and low-income) should be harmonized, i.e., all these groups should pay the same fare. |
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Decision Timeline
On May 13, 2020, the TTC Board considered a report detailing the proposed scope of work for the 5-Year Fare Policy and the 10-Year Collection Outlook.
From December 2020-February 2021, the TTC and YRT project teams reviewed existing fares, identified gaps between existing policies and customer needs, and studied best practices and lessons learned from peer agencies.
In May 2021, the TTC Board approved seven fare policy goals that provide a framework based on principles that promote equity and affordability to inform future fare policy decision making.
The February 2022 Board Report provides an overview of the key findings and messages from various stakeholder and customer groups, as well as an overview of the opportunities and benefits of a fare capping model. The Board endorsed fare capping in principle, with a motion directing staff to conduct additional financial analysis on the fare option.
10-Year Fare Collection Outlook
Project Background
The key objective is to develop a fare collection outlook over a 10-year period that will achieve policy goals and objectives established in the 5-Year Fare Policy. The creation of the 10-Year Fare Collection Outlook will follow the direction provided by the 5-Year Fare Policy.
In February 2022, the TTC Board endorsed recommendations from The 10-Year Outlook. The recommendations included a strategic roadmap for fare collection at the TTC for the next 10 years and an implementation plan for delivery of recommended technology components. Below are specific technology components that were approved by the TTC Board that TTC will want to have in its future fare collection system:
- Open Payments: A system that allows customers to use a credit card, debit, or mobile wallets to pay a single fare.
- Account-based architecture: An account-based or “open-loop” system uses a back-office system to apply business rules, determine the fare, and settle the transaction.” This would allow customers to set a specific fare type (e.g., youth, senior, or Fair Pass) on their debit or credit card. This would also support future fare policy directions like dynamic pricing, pass options, or possible loyalty options for customers.
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Decision Timeline
On May 13, 2020, the TTC Board considered a report detailing the proposed scope of work for the 10-Year Fare Collection Outlook.
February 10, 2021, the TTC Board received a progress update on the 10-Year Fare Collection Outlook.
May 12, 2021, the TTC Board was updated on the 10-Year Fare Collection Outlook, which provided insights from peer agency reviews and findings from the fare collection Request for Information (RFI). These findings would inform the development of viable fare collection models.
February 10, 2022, the TTC Board received an update on TTC’s Fare Collection Modernization initiatives and endorsed the technology and operations fare collection options that informed the implementation plan.
June 23, 2022, TTC Board received the report, TTC’s 10-Year Collection Outlook-Modernizing Fare Collection, including a Business Case Outline, and a PRESTO update on how business deliverables have been progressing with Metrolinx.
February 28, 2023, the TTC Board received the report, Fare Modernization Update on the TTC’s Fare Collection Modernization Program, which included a progress update on the delivery of outstanding business requirements and an overview of the TTC’s Fare Modernization work, including a Risk Mitigation Plan as the TTC’s contract with Metrolinx comes to an end in 2027.
July 17, 2024, the TTC Board received the report Fare Modernization Annual Update, which includes an update on TTC’s fare modernization efforts, its automated fare collection system (PRESTO), and its related automated fare media.
If you have any feedback or questions, please contact TTCFares@ttc.ca.