Fare significance and effects on passenger public transport

Abstract

A fare is probably the most intensive studied factor of transport demand. It is because of two reasons: fare and its changes are relatively easy identifiable and measured and it is also the most easy and most often modified factor. A fare is crucial factor for public transport service, because it is the main source of income for operators. Generally, while a fare increases, demand decreases. If the sales following fare increase will grow or come down, is depend on functional relation between fare and demand, i.e. demand curve. Systems of fare could have various forms, for examples they could be areal, zonal or structured. Each one of them has its own attributes. It is usual to express the relation through elasticity concept. But fare elasticity isn’t just theoretical concept. It is also important tool for public transport planning and controlling. Elasticity is used for estimation of patronage and sales changes, which is based on fare changes.