Farebox recovery ratio
The farebox recovery ratio (also called fare recovery ratio, fare recovery rate or other terms) of a passenger transportation system is the fraction of operating expenses which are met by the fares paid by passengers. It is computed by dividing the system's total fare revenue by its total operating expenses.[1]
Fare structures
There are two schools of thought in fare collections: a simple, flat rate fare structure (pay a fixed fare regardless of time of day and/or travel distance) or a complex, variable rate fare structure (pay a variable fare depending on time of day and/or travel distance).
In North America, South America, Africa, and Oceania, the majority of the cities use simple, flat rate fare structures due to budgetary constraints. With the majority of North America, most of South America, almost all of Africa, and most of Oceania being heavily reliant on the automobile for both short and long distance travel, majority of the transit budgets are allocated toward construction and maintenance of freeways and roads, with very little funding making way to investments in new mass transit technologies. Inadvertently however, the reliance on simpler fare structures due to their cheaper costs ends up increasing the tax burden on the agencies as flat rate fare structures have lower farebox recovery ratios, placing more pressure to the transit agencies to increase taxes, pursue higher fare hikes, or to cut services to maintain the transit system.
In sharp contrast, majority of the cities in Europe and Asia are heavily dependent on mass transit. Therefore, the majority of their transit budgets are used extensively on mass transit technologies, which enables these countries to install and maintain self-supporting and profitable variable pricing structures. Transit agencies that have instituted a more variable fare structure depending on distances or zones traveled have higher farebox ratios over those that rely on a flat-rate model.[2] In addition, recent urban transit scholars agree that variable pricing methods on public transit would actually be a profitable business which can alleviate many municipal agencies' budget problems.[3] For example, transit riders will be discouraged to travel longer distance due to increasing price as one travels further, reducing human congestion of mass transit riders who ride lengthier trips. On the other hand, an increased number of riders will opt to frequently use the transit system for multiple short and quick hop-on and hop-off trips as prices would be cheaper for shorter trips, which mass transit is better suited for. The downside however is that institution of variable-rate fares requires a high value initial investment in fare ticketing technologies such as the use of contactless smart cards, turnstiles or fare gates, automated ticket machines, as well as the IT infrastructure in which the return on investment may take years depending on the expected transit ridership volumes.[4]
Farebox ratios around the world
The farebox recovery ratio is the ratio of fare revenue to total transport expenses for a given system.[1] These two figures can be found in the financial statements of the operators. Oftentimes the operator runs multiple modes of transport (e.g. subway and bus), and there is no data for individual modes (segment analysis). In this case the operator is considered as one system, or a group of modes are collectively considered one system.
Fare revenue is not the same as "transport" or "operational" revenue, as there are often secondary sources of revenue such as lockers and paid restrooms. Fare revenue is a subset of transport revenue, which is in turn part of total revenue along with "non-transport" or "non-operational" revenue.
Total "transport" or "operational" expenses are a part of total expenses along with "non-transport" or "non-operational" expenses. Total transport expenses may include expansion projects if they are paid for by the operator.
Continent | Country | System | Ratio | Fare system | Fare rate | Year |
---|---|---|---|---|---|---|
Asia | Hong Kong | Hong Kong MTR | 124%[5] | Distance based | HK$3.5+ (cash)
HK$3.5+ (Octopus card) |
2016 |
Asia | Japan | Osaka (Hankyu Railway) | 123% | Distance based | ¥150+ | 1991[6] |
Asia | Japan | Osaka (OMTB) | 137% | Distance based | ¥200+ | 1991[6] |
Asia | Japan | JR East | 84%[7] | Distance based | 2016 | |
Asia | Japan | Tokyo Metro | 119%[8] | Distance based | ¥160+ | 2016 |
Asia | Japan | Tokyo Toei rail services | 74%[9] | Distance based | 2015 | |
Asia | Taiwan | Taipei Metro | 100%[10] | Distance based | NT$20+ (cash)
NT$16+ (EasyCard or other cards) |
2015 |
Asia | Taiwan | Kaohsiung MRT | 83%[11] | Distance based | NT$20+ (cash)
NT$17+ (iPASS or other cards) |
2015 |
Asia | Singapore | Singapore (SMRT) | 101% | Distance based | SGD 1.10+ (cash)
SGD 0.77+ (EZ-Link Card) |
2017[12] |
Asia | China | Beijing Subway | 60% | Distance based | CNY 3.00+ | 2012[13] |
Europe | Netherlands | Amsterdam (GVB) | 88% | Distance based | 2018[14] | |
Europe | Netherlands | Rotterdam (RET) | 80% | Distance based | 2016[15] | |
Europe | Germany | Berlin | 70% | Zone based | EUR 2.60+ | 2010[16] |
Europe | Belgium | Brussels | 35% | 2007[17] | ||
Europe | Denmark | Copenhagen | 52% | Zone based | 1991[18] | |
Europe | UK | London Underground | 107% | Zone based | 2016[19] | |
Europe | Spain | Metropolitan lines of Ferrocarrils de la Generalitat de Catalunya (FGC) | 93% | Zone based | 2014[20] | |
Europe | Spain | Madrid | 41% | 2007[17] | ||
Europe | Italy | Milan | 28% | 1991[18] | ||
Europe | Germany | Munich | 70% | Zone based | 2010[21] | |
Europe | Czech Republic | Prague (DPP) | 53% | Flat rate | CZK 24+ | 2013[22] |
Europe | France | Paris (STIF) | 30% | Zone based for passes Distance based for tickets |
€1.80 | 2014[23] |
Europe | Sweden | Stockholm | 37% | Zone based | SEK 44–88 (conductor) SEK 25–50 (SL Access card) Note: Tickets are not sold on buses. |
2007[17] |
Europe | Italy | Rome | 36% | 2007[17] | ||
Europe | Austria | Vienna | 49% | Flat rate | EUR 2.00 | 2008[24] |
Europe | Finland | Helsinki | 49%[25] | Zone based; each borough forms a zone. Boroughs with a small area are treated as being part of one of their neighbouring boroughs. | EUR 2.80–7.00 (cash) EUR 1.90–5.60 (travel card) Transfer free of charge |
2011 |
Europe | Switzerland | Zurich | 60% | Zone based | CHF 4.30+ | 2014[18] |
North America | US | Amtrak | 95% | Distance & demand based | 2017[26] | |
North America | Canada | VIA Rail | 51% | Distance & demand based | 2016[27] | |
North America | US | Atlanta (MARTA) | 30% | Flat rate | US$2.5 | 2016[28] |
North America | US | Austin (CMTA) | 11% | Flat rate | US$1.25–US$3.5, depending on modality | 2016[28] |
North America | Canada | Brampton (BT) | 46% | Flat rate | C$3.25 (cash)
C$2.65 (Presto Card) |
2012[29] |
North America | US | Boston (MBTA) | 30% | Flat rate | US$2.65 (cash) / US$2.1 (CharlieCard) | 2016/17[30] |
North America | Canada | Calgary | 50% | Flat rate | C$3.00 | 2012[31] |
North America | US | Chicago (CTA) | 55% | Flat rate | US$2.5 (cash and Ventra) | 2016[32] |
North America | US | Chicago (Metra) | 43% | Zone based | US$4-$11 | 2016[28] |
North America | US | Cleveland (GCRTA) | 18% | Flat rate | US$2.5 | 2016[28] |
North America | US | Dallas (DART) | 14% | Flat rate | US$2.5 | 2016[33] |
North America | US | Detroit (DDOT) | 20% | Flat rate | US$1.5 | 2016[28] |
North America | Canada | Edmonton (ETS) | 39% | Flat rate | C$3.00 | 2007[34] |
North America | US | Harrisburg, PA (CAT) | 17% | Flat rate | US$1.75 | 2015[35] |
North America | US | Las Vegas Monorail | 56% | Flat rate | US$5 | 2016[36] |
North America | US | Long Island (MTA) | 50% | Zone based | US$5+ | 2012[37] |
North America | US | Los Angeles (LACMTA) | 23% | Flat rate | US$1.75, with discounts for seniors, disabled, students | 2016[28] |
North America | US | Maryland | 23% | Variable | US$1.6–US$11, depending on distance & modality | 2012[37] |
North America | US | Miami-Dade Transit | 21% | Flat rate | US$2.25 | 2016[28] |
North America | US | Minneapolis – St. Paul | 25% | Flat rate with rush hour and express surcharges | US$2 to US$3.25 | 2016[28] |
North America | Canada | Mississauga (MiWay) | 46% | Flat rate | C$3.25 | 2011[38] |
North America | Canada | Montreal (STM) | 46% | Flat rate | C$3.25 | 2016[39] |
North America | US | New York City MTA | 47%[40] | Flat rate | US$2.75 | 2016[28] |
North America | US | New York City (NYC Ferry) | 29% | Flat Rate | US$2.75 | 2017[41] |
North America | US | New York/Connecticut (Metro-North) | 60% | Distance based | US$2.25+ | 2016[28] |
North America | US | New York/New Jersey (PATH) | 44% | Flat rate | US$2.75 | 2016[28] |
North America | US | New Jersey (NJT) | 45% | Distance based | US$2.25 | 2016[28] |
North America | US | Orlando (Lynx) | 24% | Flat rate | US$2 | 2016[28] |
North America | Canada | Ottawa (OC Transpo) | 45% | Flat rate | C$3.65 (Cash) | 2014[42] |
North America | US | Philadelphia (SEPTA) | 39% | Flat rate | US$2.5 / US$1 (Transfer) | 2016[28] |
North America | US | Pierce County, WA | 30% | Flat rate | US$2 | 2015[35] |
North America | US | Philadelphia/New Jersey (PATCO) | 49% | Distance based | US$1.4+ | 2015[35] |
North America | US | Portland Metro Area (TriMet) | 30% | Flat rate | US$2.5 | 2016[28] |
North America | US | Greater Seattle Area (King County Metro) | 35% | Zone and peak based | US$2.5+[43] | 2016[44] |
North America | US | Puget Sound Region (Sound Transit) | 42% | Zone & distance based | US$2.75+ (Bus)[45] | 2017[46] |
North America | Canada | Quebec City (RTC) | 39% | Flat rate | C$3.00 | 2011[38] |
North America | US | San Antonio (VIA) | 12% | Flat rate | US$1.2 | 2016[28] |
North America | US | San Diego MTS | 39% | Flat rate | US$2.5 | 2016[28] |
North America | US | San Francisco Bay Area (BART) | 70% | Distance based | US$2+ | 2017[36] |
North America | US | Oakland Airport Connector | 96% | Flat rate | US$6 | 2015/2016[47] |
North America | US | San Francisco Bay Area (Caltrain) | 63% | Zone based | US$3.75+ | 2015[48] |
North America | US | San Francisco Bay Area (SFMTA) | 35% | Flat rate | US$2.25 | 2016[49] |
North America | US | Santa Clara County (VTA) | 10% | Express surcharges | US$1.25 to US$12 | 2016[50] |
North America | US | Southern California Regional Rail Authority | 41% | Distance based | US$2.5 to US$27.5 | 2017[51] |
North America | US | Staten Island (MTA) | 15% | Flat rate | US$2.75 | 2015[52] |
North America | Canada | Toronto (TTC) | 70% | Flat rate | C$3.00 (tokens/electronic fare card) $3.25 (cash) Jan 2017[53] | 2016[54] |
North America | Canada | Toronto, Hamilton and area (GO Transit) | 77% | Distance based | C$5.30+ | 2015/16[55] |
North America | Canada | Vancouver TransLink | 55.8%[56] | Zone based; transition to distance based upcoming | C$2.95+ | 2017 |
North America | US | Washington, DC (WMATA) | 42%[57] | Distance and time of day based | US$2(Bus)
US$2+ (Off-peak Rail) US$2.25+ (Peak Rail) |
2016[57] |
North America | Canada | Winnipeg | 60% | Flat rate | C$2.50 | 2011[38] |
Oceania | New Zealand | Auckland | 44% | Zone Based | 2012/13[58] | |
Oceania | Australia | Canberra | 21% | Flat rate | A$4.20 | 2007[59] |
Oceania | Australia | Sydney | 27% | Distance based | A$0.15 / km | 2014[60] |
Oceania | Australia | Melbourne | 30% | Zone and time based | From A$3.76 / hour / zone | 2014[61] |
Oceania | New Zealand | Christchurch | 35% | Zone Based | 2012/13[58] | |
Oceania | New Zealand | Dunedin | 60% | Zone Based | 2015/16[58] | |
Oceania | New Zealand | Hamilton | 34% | Flat rate | 2012/13[58] | |
Oceania | New Zealand | Wellington | 57% | Zone Based | 2012/13[58] |
References
- 1 2 "State audit finds Md. transit agency didn't verify Purple Line design firm payments". Washington Post. Retrieved 25 April 2017.
- ↑ Teik-Soon Looi, Kim-Hong Tan , "Singapore’s case of institutional arrangement for fare affordability", 11th Conference on Competition and Ownership in Land Transport, 27 August 2009
- ↑ Allison Yoh, Brian D. Taylor, and John Gahbauer, "Does Transit Mean Business? Reconciling academic, organizational, and political perspectives on Reforming Transit Fare Policies", UCLA Luskin School of Public Affairs, Institute of Transportation Studies , June 2012
- ↑ Dr. Jean-Paul Rodrigue, "The Geography of Transport Systems, Third Edition, 2013
- ↑ "2016 Annual Report – Notes to the Consolidated Accounts" (PDF). MTR Corporation. Retrieved 24 April 2017.
- 1 2 Dr. Kenichi Shoji, "Lessons from Japanese Experiences of Roles of Public and Private Sectors in Urban Transport", Japan Railway & Transport Review, December 2001
- ↑ "JR East Annual Report" (PDF). www.jreast.co.jp. Retrieved 24 April 2017.
- ↑ "Tokyo Metro Corporate Profile 2016" (PDF). www.tokyometro.jp. Retrieved 24 April 2017.
- ↑ "Budget" (PDF). www.kotsu.metro.tokyo.jp (in Japanese). Retrieved 25 April 2017.
- ↑ "2015 Annual Report" (PDF). Taipei Rapid Transit Corporation. Retrieved 24 April 2017.
- ↑ "KMRT Annual Report 2015" (PDF). www.krtco.com.tw. Retrieved 24 April 2017.
- ↑ "SMRT Trains Operations Review 2017" (PDF). Retrieved 22 July 2017.
- ↑ "杭州地铁拟定票价 “贵”为全国前三 市民喊吃不消" 钱江晚报 Archived 23 July 2012 at the Wayback Machine. (in Chinese) 20 July 2012
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- ↑ "GVB Annual Report". GVB. 2017. p. 11.
- ↑ "Fahrinfo". Bvg.de. Retrieved 20 November 2014.
- 1 2 3 4 "Les transports ferroviaires régionaux en Ile-de-france" (PDF). Cour des Comptes. 2010. p. 128.
- 1 2 3 "Regional Coordination in Public Transportation: Lessons from Germany, Austria, and Switzerland" (PDF). Jrtr.net. Retrieved 20 May 2015.
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- ↑ "Presentació de resultats 2014" [2014 Presentation of Results] (PDF) (in Catalan). Ferrocarrils de la Generalitat de Catalunya; Government of Catalonia. 11 March 2015: 12–13. Retrieved 4 July 2015.
- ↑ Hale, Chris and Phil Charles (11 July 2010). "PRACTICE REVIEWS IN PEAK PERIOD RAIL NETWORK MANAGEMENT: MUNICH & WASHINGTON DC" (PDF). World Conference on Transport Research Society. Retrieved 1 February 2018.
- ↑ "Výroční zpráva 2013" (PDF). DPP. pp. 124, 126.
Total fares revenue 4 446 808 CZK ... Operating expenditure (excluding cost of transport path) 8 365 447 CZK
- ↑ Rapport d'activité, STIF (PDF), STIF, 2014
- ↑ Hale, Chris and Phil Charles (2008). "Visions for a sustainable transport future – a comparative analysis of transport planning approaches in Singapore, Vienna and Brisbane" (PDF). Australasian Transport Research Forum.
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- ↑ City of Edmonton
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- ↑ King County Metro Accountability Center - Financial, Retrieved 24 Jun 2017
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- ↑ Sound Transit 2017 Adopted Budget
- ↑ Baldassari, Erin (27 November 2016). "BART's Oakland Airport Connector losing money; Uber, Lyft to blame?". East Bay Times. Retrieved 29 November 2016.
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- ↑ "Prices". ttc.ca. Retrieved 9 January 2017.
- ↑ "TTC 2016 Annual Report" (PDF). Retrieved 13 January 2018.
- ↑ Metrolinx Annual Report 2015-2016
- ↑ "TransLink 2017 Accountability Reportt". Retrieved 8 October 2018.
- 1 2 "30030 - 2016 Agency Profile" (PDF). Federal Transit Administration. Retrieved June 20, 2018.
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