With any bus undertaking, fare structure, level of fares and method of payment all interact to affect the amount of travel, the revenue received and the costs of operating the service provided. A comparative analysis of a flat-fare and graduated-fare system, using London data (but ignoring possible interactions with the underground railway) is described in the report for three situations: (1) where the introduction of flat fares results in no bus operating cost savings. (2) Where flat fares result in an appreciable operating cost saving due to reductions in boarding times of one-man buses and an increase in the number of two-man buses which can be converted to one-man operation. (3) Where the operating cost savings are as specified in (2) and where the number of buses in service is changed in proportion to the number of passenger journeys made. The results suggest that, if the undertaking is required to break-even, the economic case for flat fares is weak, unless such a system can bring about substantial operating cost savings. If, however, transport policy favours cheap subsidised travel, then there is a case for flat fares which becomes stronger with increasing operating cost savings and with increasing subsidies. Aspects of fares policies such as passenger convenience in using the system, equity and fairness, and the ease with which management information can be obtained are also relevant and are discussed qualitatively. /Author/ /TRRL/

  • Corporate Authors:

    Transport and Road Research Laboratory (TRRL)

    Wokingham, Berkshire  United Kingdom 
  • Authors:
    • Webster, F V
  • Publication Date: 1976


  • English

Media Info

  • Features: Figures; References; Tables;
  • Pagination: 14 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00147767
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • Report/Paper Numbers: Lab. Rpt. 704
  • Files: ITRD, TRIS, ATRI
  • Created Date: Apr 13 1977 12:00AM