From "distance-based" price discrimination to "use-based" price discrimination: tracks to improve fare box revenue in urban public transport

Catherine Bouteiller (1) , Bruno Faivre d'Arcier (1)

1 LET - Laboratoire d'économie des transports

1. Objective The target of this paper is to initiate a discussion on how improving urban public transport fare box revenue by increasing quality of revenue and especially adequacy of fares to the public transport network and the urban form of the city. What are the determining factors of an appropriate fare policy? Are customers' expectations fully taken into considerations? We consider that fare policy can respond to the search of friendly use network, seamless strategy for a better mobility in the urban area and equity of customer regarding their social conditions and their use of the network. Public transport business model must take into account fare policy as a variable of the economic performance of the system. 2. Methodology We will analyse the public transport network and fare grid structure of 8 cities. Cities selected correspond to different type of urban morphologies: monocentric, composite or poly-centric: Paris, London, Copenhagen, Amsterdam, Madrid, Seoul, Singapore, Tokyo. Our study consists in comparing journey-based system chosen by these cities, progressivity of fares on their season ticket using PPP rate. By studying "Journey-based" price discrimination such as distance based, zone based or cells comb based we will have elements to understand how delivering the appropriate pricing system contributes to a better use of the public network in a given spatial form of the city. Beyond the study of "journey-based" price discrimination we will focus on "use-based" price discrimination. 3. Results Fare grids can be a tool to respond more accurately to the changing needs of the different urban schemes and to customers' expectations. But study of fare grids enhances complexity of combination of fare possibilities offered by fare management tools to implement "use-based" fare discrimination. In Asia, innovating aspect of fare grid is its capability to give a signal to customer expectations in matter of level of service and at the same time a tool to improve fare box ratio. We will go further by emitting the idea that fare grid is not only a lever to improve fare box but it has an effect on network usability and orientation of demand. 4. Implications for policy Fare grids are rarely linked to urban forms. Public transport network can't easily change due to the cost of infrastructure. However, fare grid policy can be a tool to give an orientation for a better use of public transport. PTA fare policies are very often oriented to welfare policy and concessionary fare. This paper is an assesment approach of pricing in public transport to give tracks to the PTA on the fact that fare grid can be remodelled to reflect more accurately transport network operating cost depending of the size and shape of the network, and to respond to customer demand of services and usability of the network.

Mots clés: fare box; urban planning; public transport

Domaines: Architecture, aménagement de l'espace

Catherine Bouteiller, Bruno Faivre d'Arcier. From "distance-based" price discrimination to "use-based" price discrimination: tracks to improve fare box revenue in urban public transport. 2013. ⟨halshs-00948089⟩