Fare-capping is an emerging fare policy where transit agencies track passenger spending over a set period (daily, weekly, or monthly) and automatically convert fare payments into a pass once spending reaches the pass cost, ensuring passengers don’t pay more than passholders. This approach can promote increased transit ridership by offering discounted per-trip rates.  

While fare-capping appears to  be an innovative pricing strategy for public transportation, understanding its impact on different passenger groups—(e.g., income level, age, trip length, trip frequency) requires deeper analysis of travel behaviors. Key questions include which riders benefit most from fare-capping, and what are the likely financial impacts to transit agencies of different fare capping scenarios. 

The objective of this research is to develop a comprehensive report that includes: 

•A review of previous studies on fare-capping’s effects on travel behavior, with emphasis on demographic breakdowns (e.g., age, income, disability).
•An analysis of cost savings and increased mobility benefits across different  public transit market segments.
•A framework or tools for transit agencies to assess the transit ridership, passenger mobility,  and financial benefits and impacts of various fare-capping policies.