Purpose of concession

A fare concession for children can reflect their lower usage of bus capacity (size and weight), but may also be used a marketing tool to attract a future lifetime customer through habituation. Other concessionary fares reflect social interventions in favor of selected groups, with this public service obligation then being placed on the operator as examined earlier.

In many cases the original purpose of the concession has proved not to be well targeted, and many beneficiaries when offered a cash alternative take that rather than the travel benefit. As such, it is always prudent re-examine each of the qualifying groups and ask whether this is the best means of assisting them. The cost of concessions is often significant, and has to be borne somewhere in the transport system; sadly they are often seen as a no-cost political gesture.