The Casco Bay Island Transit District (CBITD) has approved its first rate hike in more than a decade, increasing the cost of round-trip tickets for tourists and visitors while decreasing the price of the long-term passes used by those who frequently travel to and from the islands.
These efforts will be coupled with spending cuts in hopes of reducing the Casco Bay Lines’ continued multi-million dollar operating losses by 25 percent, or about $1 million.
Not only will the overall price of tickets for Casco Bay Lines change, but the structure of the fare schedule itself will now be different as well.
Instead of the destination-based pricing scale that is currently in use, the CBITD will be implementing a flat fee for each ticket type, meaning that it will cost passengers the same regardless of the island to which they are traveling.
Casco Bay Lines has also done away with some of the options for purchasing tickets in bulk at a discounted price.
If this slate of changes are approved by the Public Utilities Commissions (PUC), round-trip tickets will cost a flat $14 for adults during peak season.
$7 discounted tickets will be available for seniors, disabled people, and children between the ages of 5 and 17. Fare will continue to be free for children younger than 5.
During the off-season, full price tickets will cost $7.20, with half-price tickets available at $3.60 for those eligible.
Round-trip tickets currently range in price from $7.70 to $11.55 during peak season and from $4.40 to $7.45 in the off-season.
Monthly passes will continue to be offered at a new, lower price of $48, with a fifty percent discount for those eligible. During the off-season, these tickets will have a base price of $32.
Under the current structure, monthly passes can be purchased for anywhere between $82.45 and $125.15.
Added to the fare schedule will be a 90-day pass sold for a base price of $144 during peak season and $96 in the off-season. A fifty percent discount will be made available to eligible individuals.
The cost of annual passes will drop significantly to a flat $432 with a half-price option for eligible passengers. This represents a steep decrease from the current pricing system in which these tickets cost anywhere between $906 and $1,376.
Commuter books and blocks of five discounted tickets will no longer be available for purchase under the new fare schedule.
Pending PUC approval, all of these changes will take effect on June 1, 2024.
Click Here to Read the Proposed New Rate Schedule for Casco Bay Lines
Although not included in the final proposal, members of the public provided feedback recommending that the Board create a “friends and family discount” whereby residents could purchase discounted tickets to supply to those who visit them on the island frequently but with irregularity.
A memo shared by the Finance committee chair suggested that any such program would “need further deliberation” and “legal analysis” prior to consideration.
It was also said, however, that “this was identified as an important aspect of maintaining overall accessibility, sustainability, and vibrancy of the island communities served by the
district” and should be “evaluate[d] with all reasonable expediency.”
Click Here to Read the Finance Committee Chair’s Full Memo
Data presented by the CBITD at a meeting on April 16 showed that about 66 percent of all tickets sold through Casco Bay Lines are round-trip tickets to Peaks Island, accounting for roughly 70 percent of the total revenue generated.
For comparison, only about 45 annual passes are sold each year, contributing just 2 percent of the ferry service’s income. Roughly 800 monthly passes were recorded as having been sold during this same time frame.
Click Here to See the Full April 16th Presentation
For some time now, the CBITD has relied upon grant funding to remain revenue neutral despite its large and continued operating loss, but this deficit has increased significantly since 2019, even excluding the effects of the COVID-19 pandemic.
The fiscal year 2024 budget was approved with a notable $4.3 million operating loss, again offset by grant funding. This budget also, however, required the Board of Directors for Casco Bay Lines to reduce this revenue gap by 25 percent, a figure equal to just over $1 million.
To accomplish this, the Board has been exploring a combination of price hikes and spending cuts.
The newly-approved pricing changes are expected to generate approximately $500,000 in additional revenue, leaving the remaining reductions to be achieved through decreased spending.
It has been 15 years since Casco Bay Lines has increased its ticket prices.
“Expenses have risen, including for diesel fuel and dry dock,” Casco Bay Lines wrote on their website. “Additionally, tariff rates (i.e., ticket prices) have remained unchanged for 15 years, contributing to the magnitude of the operating loss.”
“Islanders and visitors have been fortunate that fares have not gone up in 15 years, but this trend cannot continue,” the ferry service said.
Before the new fare schedule can take effect, it must receive final approval from the Maine PUC.
Click Here for More Information from Casco Bay Lines on the New Fare Schedule
If you are losing so much money each year, why give discounts?
Federal grants will stop that.