The website The Conversation posted an article (25 August 2024) discussing how reduced fares affect public transport usage in Australia. You can read it here.

It is focused around Queensland’s 6-month trial of 50-cent fares. 50 cents is apparently a peppercorn rate to maintain the data collection from tapping on and off, which would be lost if they just kept the ticket barriers open.

The author asserts three ways the transport authorities use fares:

  1. To help cover the costs of the service – although in most Australian cities fares contribute about 30% of the revenue of the transport authority. (In London it’s about 75%.)
  2. To regulate use at certain times of the day, e.g. off-peak fares being lower.
  3. To discourage use of the trains and stations by people in need of shelter and for staying warm.

It mentioned that cutting fares can lead to an increase in ridership, and that studies differ on how much that increase would be. The length of time the reduced fares were being offered for would also affect the level of ridership increase.

The article also mentioned that in Australia, Canberra’s transport authority is set to introduce free public transport from tomorrow (1 September 2024) until November, while they install the new hardware for tap-on tap-off fare collection.

Published: 31 August 2024.