Decision process for reforming a fare collection system

1. Analyze the strategic policy and institutional frameworks for urban passenger transport in your city. If these need reform, first use the Urban Bus Toolkit: www.ppiaf.org/UrbanBusToolkit
2. If the strategic policy and institutional frameworks that govern the selection of objectives for the fare collection system are appropriate, define the objectives from the perspectives of the public transport authority, the service provider(s), and the passengers and agents directly affected by the application of the system.
3. If any of these objectives are in conflict, either prioritize the interests of one stakeholder set or find compromise objectives that can still meet the interests of the respective parties.
4. Once the objectives for the fare collection system have been set, define the fare collection practices required to meet those objectives. These will include fare structures, fare products and concessions, fare price differentiation, fare integration modalities, and system payment management.
5. Once the fare collection practices have been set, select the most appropriate fare collection procedures for the payment and validation of fares and for securing and allocating the fare revenues arising. These will include where and how tickets are sold and validated, and the modalities for their inspection and penalization of offenders.
6. Once the fare collection procedures have been selected, identify the most appropriate fare collection technologies to support the procedures. These may range from simple mechanical devices in low-technology environments, through to full electronic fare collection systems.
7. If the selected technologies involve the introduction an electronic fare collection system, follow the guidance provided in the Passenger Transport ITS Toolkit in developing the implementation program.
8. If an investment in an electronic fare collection system is likely to provide a high financial rate of return, use this to justify and pre-fund the investment. If appropriate, the fare collection agency may grant a lien to the system financer on the revenues arising.
9. If the investment in an electronic fare collection system is justified, investigate whether the use of its embedded technologies could have additional applications to enhance both the efficiency and the effectiveness of the passenger transport system.
10. Should the investment in an electronic fare collection system provide the anticipated benefits on an ongoing basis, return to the objectives set for the system so as to prioritize the allocation of the surpluses arising.