Fare pricing objectives

The objectives set for the pricing of fares will depend on the perspective of the authorizing body. Clearly operators will put their own financial interest first, whereas a transport authority would be expected to protect the public interest within the constraints of its own resources.

The objectives set for fare pricing should therefore reflect the strategic policy and institutional frameworks that govern the objectives set for urban passenger transport in general and fare policy in particular.

Options to be considered are:

  • Revenue maximization
  • Profit maximization
  • Related to value of service
  • Related to cost of production
  • Balancing value and cost priorities