Fare's Fair: Experiences and Impacts of Fare Policies
Executive Summary
The report explores the experiences and impacts of fare policies in public transportation, aiming to foster a deeper understanding of how these policies affect economic growth, environmental sustainability, and social inclusion.
What We Did
The International Transport Forum (ITF) conducted a comprehensive analysis of fare policies, focusing on their implementation and effectiveness. The study involved case-specific policy analysis reports, expert interviews, and the examination of various fare structures and policy principles.
What We Found
Key findings include:
- Fare Structures and Usage Incentives: Different fare structures (flat-rate vs. differentiated, pay-as-you-go vs. subscriptions) significantly influence ridership patterns and revenue generation.
- Principles for Fare-Setting: Effective fare-setting principles should consider cost recovery, equity, and efficiency. Vertical equity focuses on distributing costs and benefits based on attributes like income, while horizontal equity ensures fair treatment among similar users.
- Fairness and Efficiency: Fairer fare systems can enhance social inclusion and economic efficiency. For example, concession fares for specific groups (e.g., based on age, disability, or income level) ensure that all demographic groups have access to public transport.
- Open-Payment Systems: The adoption of open-payment systems (using contactless payment methods like credit/debit cards or mobile wallets) improves convenience and reduces transaction costs.
- Transfer Windows: Implementing transfer windows allows for seamless multi-modal travel, enhancing the overall efficiency of public transport systems.
What We Recommend
The report recommends:
- Implementing More Flexible Fare Structures: Tailor fare structures to meet the needs of different user groups and encourage higher ridership.
- Promoting Cost Recovery and Equity: Ensure that fare policies balance cost recovery with equitable distribution of costs and benefits.
- Enhancing Transparency and Communication: Improve transparency and communication about fare policies to build public trust and support.
- Expanding Open-Payment Systems: Encourage the use of open-payment systems to enhance accessibility and convenience.
- Fostering Multimodal Integration: Promote multimodal integration through mechanisms like transfer windows to optimize the use of public transport.
Key Data Points
- Mode Split/Mode Share: The percentage of total passenger-kilometres or trips accounted for by a single mode of transport.
- Fare Elasticity: Users' sensitivity to price changes in fares.
- Peri-Urban Areas: Less densely populated but inhabited peripheral areas within a city’s boundaries, often single-use areas or residential areas near the greenbelt.
- Public Transport: Services provided by bus, metro, tram, and rail.
- Teleworking: Carrying out work remotely while staying connected to the office via network technologies.
By addressing these key areas, fare policies can contribute to more sustainable and inclusive transport systems.
