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HomeMy WebLinkAbout1992-10-13 - AGENDA REPORTS - PROMOTIONAL FREE RIDE TRANSIT (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: AGENDA REPORT October 13, 1992 City Manager Apprc Item to be presented USE OF FREE RIDE TICKETS AS A PROMOTIONAL TOOL FOR THE LOCAL TRANSIT SYSTEM Public Works As noted in the analysis of the transit system conducted by Arroyo Seco Associates, the local transit network has not been marketed. If the City intends to encourage transit usage, improve air quality and reduce traffic congestion, significant ridership growth will need to occur. Aggressive promotion is a critical component to attaining this growth. Market research has shown that even when people are fully aware of the transit services available and hold a positive image of the transit system, "fear of the unknown" will keep prospective customers from sampling the system. Inducements, such as free ride coupons have been shown to be effective in encouraging people to try transit; and once they try it, they are more likely to continue using transit. Transit division staff are proposing to distribute free ride coupons in specific controlled situations designed to reach out to new adult riders. Initially, coupons would be distributed at Metrolink inaugural festivities as an enclosure in the new transit system timetables and to businesses and residents in areas served by service extensions and changes. In the future, coupons would be distributed to households and employers in areas where service is improved or where ridership is weak. In all instances, coupons would have an expiration date to provide an added incentive for immediate use and to prevent a proliferation of coupons in circulation at any one time. A positive revenue impact is anticipated. Although some customers using coupons could be current riders, most users would not have ridden the bus without the coupon, therefore would not represent a loss of revenue. The transit system would generate revenue from a customer return trip and any succeeding trips the customer makes now that they sampled the system. AP, P, InUuED Agendaltem:-at Free Ride Tickets October 13, 1992 Page 2 Free ride coupons is a vehicle used by many transit system throughout the country and has been shown to be an effective marketing tool adding value to whatever promotional efforts the coupon is used in conjunction with. Authorize Santa Clarita Transit to issue free ride coupons for use on the local fixed route network. These coupons would have an expiration date and distribution would be controlled with the intent of attracting new adult riders to the local transit system. ATTACHMENT Sample Coupon RK:gmm freeride.agn Front This coupon entitles h ride on any Santa cll fixed route bus