Keeping it fare: How to make public transport fares affordable

Public transport fare schemes need a delicate balance. They have to be affordable for passengers, as well as for operators and authorities. Ensuring the financial sustainability of the system is key to ensure access and inclusivity for all different groups. How do you strike that balance?

On the one hand, fares fund public transport systems. On average, passenger fares might cover around 30-50% of operating expenses. And on the other hand, fares need to be accessible and affordable so that everyone can use public transport services. Ultimately, our goal as a sector is to encourage a sustainable modal shift.

Some interest has grown in fare-free public transport, though that entails replacing fare revenue with other funding streams, whether it be from taxes or third-party funding like congestion charging or commercial revenue. But an overhaul of the system can be avoided through the strengthening of social fares, a tool which is already used widely. At the end of the day, financially sustainable and that means targeting the passengers in need.

Indeed, a successful balance in fare policy is possible. Here’s how.

Authorities and operators from across the world have implemented innovative fare schemes and seen different results. In this publication, dive into UITP’s recommendations for fare policy and explore examples from across Brazil, France, Singapore, and more on how to make public transport fares affordable – while keeping the system financially viable.

Explore how to make fares affordable

• Why should public transport be affordable?
  • The value of public transport
  • What is fare affordability and how can you measure it?
  • The value of fare affordability in public transport
  • Introduction of public compensation in Brazil
  • The concept of transport poverty in EU law
  • Singapore’s fare affordability approach
  • Fare overview in Paris, Île-de-France
• Strategies to deploy affordable fares, minimise required public compensation, and optimise ridership
  • Price volume fare strategy
  • Fee-based fare strategies and solidarity fares
  • Income-based fare schemes
  • The Brussels approach
  • The deployment of nationwide tickets
  • Inclusion of employers
  • Designing solidarity pricing
• Balancing fare affordability, cost pressure, and revenue source uncertainty
  • Impacts to operators
  • Using a fare formula
  • Lisbon’s new fare policy
  • The case of Hong Kong – Review of formula-based fare adjustment mechanism
• Recommendations

Explore how to make fares affordable