The TTC’s Revenue Protection StrategyAudit and Risk Management Committee

February 11, 2019

2

Agenda• The TTC’s Revenue Protection Strategy

‒ Preparation Work in 2019

• Ensuring Fare Payment Equipment is Available and Reliable

• Revenue Control and Data Analytics

‒ 2019 Ridership and Revenue‒ Presto Adoption‒ Stop Sell Impact‒ Analysis and Insights

‒ Child Concession Card Insights

February 11, 2020

The TTC’s Revenue Protection Strategy

4

Revenue Protection ObjectiveMaximize revenue

February 11, 2020

Maximize Revenue

Customer Service

Correct Fares

Reliable Equipment

5

Streetcar Deployment Tactics

Consistent resource assignment ‘Crush load’ inspection ‘U-Turn’ customer inspection Offboarding inspection Zone assignment Proportional network coverage

February 11, 2020

6

Streetcar Deployment TacticsZone coverage map

February 11, 2020

7

Stations Coverage Peak Post AM

2

GSM/DSM

Subway Supervisors

Station Supervisors

Revenue Protection ResourcesTransit Control-Bus

8

Reducing Fareline Permeability – ‘Locking’ Farelines

February 11, 2020

Fare Evasion DeterrenceProof of Concept

Barriers installed between farelines and collector booths to decrease opportunity for station access without payment

Improvements to faregate function and first line maintenance

9

Improving Visibility and Security in Stations

Pilot 360 degree view camera and new video management system

Sample View 1 Yonge/Bloor Sample View 2 Yonge/Bloor

February 11, 2020

10

Customer Communication Positive ‘tap every time’ Culture

February 11, 2020

Ensuring Fare Payment Equipment is Available and Reliable

12

Reliable Fare Payment Equipment - PRESTO

February 11, 2020

Three Phase Approach1) Incident Management:

Unplanned interruption to a service or reduction in the quality of a service

Restore normal service operation as quickly as possible

2) Problem Management: Address recurrence of incidents

3) Continuous Improvement: On going program with Metrolinx Q4 2019 activities focused on process

enhancements and stabilization

13

Reliable Fare Payment Equipment

February 11, 2020

Improvements to daily operations/services

Increased remote and real‐time monitoring

Availability reporting using real‐time data

Improvements to device functionality (hardware/software)

Q4 2019 Improvements

Equipment performance is based on:− Device functionality− Device maintenance/cash collection

service Changes implemented in Q4 2019

− Ongoing improvement program− Address specific AG recommendations

14

PRESTO in Streetcars Fare and Transfer Machines (FTM) and card readers

Add cash collection and maintenance at third designated location

Remote monitoring and remote device recovery

Daily device audits by Staff prior to start of service

Improved process to make vehicles available for PRESTO maintenance and cash collection

Enhanced reporting/analytics

Cash Collection

Trigger alerts for cash vault collection set at 75% volume

Increased cash collection locations in designated facilities

Ad hoc cash collection services

February 11, 2020

PRESTO card readers

Fare Transfer MachinesFare Transfer Machines

15

Remote monitoring and remote device recovery

Daily audits of PRESTO card readers prior to start of service

Enhanced reporting/analytics

PRESTO on Bus

February 11, 2020

PRESTO card readers

16

PRESTO in Stations

Fare Vending Machines (FVM) and Self Serve Reload Machines (SSRM)

New bank note acceptor hardware New SSRM software to address screen freezing Remote monitoring and remote device recovery Improve escalation process Use of device statistics for coordinating

cash collection & maintenance Ad-hoc cash collection Enhanced reporting/analytics

February 11, 2020

Self-serve Reload Machines

Fare Vending Machines

Revenue Control & Data Analytics Insights

18

Key Activities

February 11, 2020

• Budgeting & Forecasting• Revenue Accounting• Financial Controls• PRESTO Liaison

• Ridership Forecasting• System Usage Reporting• Organization-Wide Analytics

Support• Business Intelligence Solutions

Revenue Control Data Analytics

19

TTC 2019 Ridership & Revenue Results

February 11, 2020

Revenue $1.184 B*

86.8%

Earned(1% below budget)

Revenue from PRESTO(Up from 45% Dec 2018)

*2019 revenue and actual vs budget is preliminary

525.5 M

PRESTO

RidershipSystem Wide

2019 Ridership Trend

500 M

505 M

510 M

515 M

520 M

525 M

530 M

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Forecast Budget

20

2020

PRESTO Adoption Has Doubled

February 11, 2020

45.5%

January 2020 adoption rate is preliminary

PRESTO Adoption

MetropassDiscontinued

2018 2019 JAN

Legacy Media Stop Sellat all Subway Stations

NOVJULJANDEC

StationTransformation

77.1% 81.1% 85.1% 90.0%

PRESTO Tickets available at all Subway Stations

Policy Changes

21

PRESTO Adoption Enhances Analytics Capabilities

February 11, 2020

2018 2019 2020Lack historical data Build-up of data More robust

benchmarking and budgeting

~ 0.5 M daily taps > 1.2 M daily taps

More evidence-based decision making

More granular, timely and varied data

Enhance analytical relevance

22

PRESTO Data Analytics Building Blocks

February 11, 2020

Event

Concession

Mode

Time

Route

Location

Determine the impact of policy changes and/or events

Accurately measure ridership and revenue by mode

Evaluate ridership to inform service improvement along and among routes

Leverage improved location data to inform revenue protection deployment

Understand our customers to make more informed policy decisions 

Monitor system usage by time to improve service deployment

23

Concession Profile: Legacy Media vs PRESTO

February 11, 2020

Legacy Media PRESTO Data

80%Adult

Post Secondary

15%

Senior/Stude

nt

4%Child

368 MAdult

74%

57 M

Post Secon

dary

11%

31 MStudent

6%

6%

28 MSenior

10 M 3 M

Move from sampled Legacy Media data to more accessible and precise PRESTO data allows for more detailed analysis.

Child, 2% Others, 1%

24

Before

Event Analysis: Legacy Media Stop Sell Impact

February 11, 2020

Token Legacy Ticket

-50.1% -40.9%114,355

PRESTO Ticket

+19.9%64,085

T

57,361 79,292 76,837

Nov 17- 23 2019

Dec 8 – 14 2019After

97,117

-5.9%$576,548

$542,457

Cash

25

Mode and Route Specific Analysis: 4 Sample Stops

February 11, 2020

Revenue ProtectionSupport deployment strategy of fare inspectors and special constables

Service EnhancementProvide insights on customers’ usages on 504 KING (day, time, location)

504 King Streetcar December 2019

26

Time: Concession Breakdown by Door

February 11, 2020

KING ST W AT BAY ST W SIDE504 KING

Dec 9 - 13, 20196AM – 10AM

Adult

Post Secondary

Senior

Student

40% 20% 27% 13%

8% 33% 42% 17%

100% 0% 0% 0%

601

15

12

1

18% 36% 30% 16%

Child 50% 50% 0% 0%2

Child Concession Analysis & Insights

28

Child Concession Overview

2019 Ridership - Total 525.5M

2019 Ridership – Adult, Post Secondary, Senior, Youth 503.8M (96%)

2019 Ridership – Child Non-Presto 15.5M (3%)

2019 Ridership – Child PRESTO 6.2M (1%)

February 11, 2020

223 K

403 K

14 K 27 K

109 K166 K

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2019 Child Ridership PRESTO Taps

Bus Streetcar Subway

Bus, 67.4%Streetcar, 

4.3%

Subway, 28.3%

Adult, PS, Senior, Youth96%

Child Non‐

PRESTO3%

Child PRESTO1%

29

Child PRESTO: Higher Growth in 2019

February 11, 2020

14 K

24 K1,369 K

1,710 K

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Child All ConcessionsChild card growth is faster than overall growth

All Concessions Child Concession

1.7 M Users

+25% +75%

24 K Users

30

Child PRESTO: Top 10 Locations in 2019

February 11, 2020

0 K

20 K

40 K

60 K

80 K

100 K

120 K

All top 10 locations for child card usage are Subway Stations.

#1 Dundas Station

31

Child PRESTO: Top 10 Locations (Jan 5 – 25)

February 11, 2020

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

• First 3 work/school weeks in 2020

• Selected for analysis to include• 1 PA Day (Jan 17)• 2 Strike Days (Jan 20, 21)

• Similarly, all top 10 locations for child card usage in 2019 are Subway Stations.

#1 Dundas Station

32

Child PRESTO: Dundas Station Usage by Hour(Jan 5 – 25)

February 11, 2020

94

0 0 0 1 2 2 35

7

13

24 23

30

50

61 6360

40

46

55

28

11

127

1 14

7 9

15 15

31

42

71

84 8379

53

70

93

30

9

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

School Days TCDSB Elementary Strike

TDSB Elementary Strike TDSB TCDSB Elementary PA Day

• Dundas station not likely used by children ages 0 – 12 who attend nearby schools.

• Higher usage on school closure days.

• Similar time of day usage patterns between regular school days and school closure days.

• Travel during late hours and school hours are not expected for child ages 0 – 12.

• Data shows potential misuse of child cards at Dundas Station.

School hours Late Hours

Late Hours

vs

33

Child PRESTO: York University Station Usage by Hour (Jan 5 – 25)

February 11, 2020

• York University station not likely used by children ages 0 – 12 who attend nearby schools.

• Similar time of day usage patterns between regular school days and school closure days.

• Travel during late hours and school hours are not expected for children ages 0 – 12.

• Data shows potential misuse of child card at York University Station.

School hours Late Hours

Late Hours

1 1 1

10

42

7

19

2723

35

27

43

70

54

36

26

38

11 12

0

10

20

30

40

50

60

70

80

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

School Days TCDSB Elementary Strike

TDSB Elementary Strike TDSB TCDSB Elementary PA Day

vs

34

Child PRESTO: Percentage of Abnormal Usage by Time (Jan 5 – 25)

February 11, 2020

8 K3 K 1 K 1 K 2 K

8 K

20 K

40 K

61 K

36 K32 K

35 K38 K

41 K

50 K

75 K

63 K60 K

48 K

34 K

28 K26 K

20 K14 K

0 K

10 K

20 K

30 K

40 K

50 K

60 K

70 K

80 K

90 K

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Late Hours School hours (school days only)

Travel during late hours and school hours were observed across the network. These trips are considered abnormal for children ages 0 – 12.

• 17,000 child card were used during abnormal hours. These cards generated 89% of the total taps.

• 6,000 child cards have expected (normal) usage.

35

Child PRESTO: 2019 Potential Revenue Loss

February 11, 2020

• If misuse ratio is representative of child card usage in 2019

89% Misused89% 

Misused

• 89% x 6.2M PRESTO child ride• 5.5M misused child rides in 20195.5M Rides5.5M Rides

• Average fare $2.25• Potential Loss $12.4M$12.4M$12.4M

Potential Misuse

89%