JUNEAU — Alaska ferry rates are due to change over the next several years in an effort to make them more equitable throughout the state, ferry system officials said Thursday.
Fares on most routes will increase 4.5 percent this summer. In the next four to five years, ferry officials will work to implement a new rate structure based primarily on miles traveled for all routes, said Matt McLaren, the ferry system's business development manager.
"We don't want to do big percentages each year," he said.
Meanwhile, fares for more than a dozen routes will not have a fare hike, including Annette Bay to Ketchikan, Kodiak to Seldovia and others. That's because passengers on these ferries already pay a higher fare than those on other routes.
Eventually, fares will be based on a standard formula that includes a fixed fee for getting on and off the ship and a distance-based fee. Those fees are still being developed, McLaren said.
The new rate structure was recommended in a report requested by the Legislature last year. Ferry system officials presented that report to the joint House and Senate transportation committees Thursday.
Ferry officials will also consider a seasonal rate adjustment and a premium charge for the most popular routes as part of the formula. There will also be methods for calculating the costs to bring a vehicle onboard or rent a cabin.
Ultimately, the ferry system also wants to recover a larger proportion of its costs. The report recommended fares be adjusted so rates cover between 39 to 65 percent of what it costs to transport passengers. That's based on what similar ferry systems around the world recover.
The Alaska ferry system is only recovering about 31 percent of those transportation costs, McLaren said.
McLaren said the ferry system will first look to hit the 39 percent threshold within the four- to five-year timeline.
That'll be accomplished through a combination of increased revenue and decreased costs, he said.
The ferry system is also planning to launch a new online reservation system this summer, said General Manager John Falvey. The plan is start using the system in July and have it fully operational by October.
The new rates will likely start to be implemented as part of the new reservation system, Falvey said.