Fare Avoidance - Typical Loopholes That Lead To Fare Avoidance

Typical Loopholes That Lead To Fare Avoidance

Apart from mileage, some rail systems or airlines calculate fare based on an individual route's popularity and a host of other factors. Therefore, instead of a fare directly from A to B, a passenger may go from A to P and then P to B for less. This price advantage is more pronounced if P is en route between A and B.

Even if mileage is the sole factor in pricing apart from discounts, applicable to journeys exceeding a certain mileage, paradox may result for borderline cases. For example, a rail system practises a fare structure of $100 for the first 100 km and $6 for each additional 10 km. A ticket from A to B, 380 km apart, costs $268. If a discount of 15% applies to mileages exceeding 400 km only, a ticket from A to C, 420 km apart, would cost $292 × 85% = $248.2. A traveller may buy a ticket from A to C and alight at B, avoiding the $19.80.

Frequently, smart cards, as a convenience, allow the user to run a negative balance. If this balance is greater than the cost of the card, the user may profit by simply discarding the card and purchasing another.

Read more about this topic:  Fare Avoidance

Famous quotes containing the words typical, lead, fare and/or avoidance:

    The books may say that nine-month-olds crawl, say their first words, and are afraid of strangers. Your exuberantly concrete and special nine-month-old hasn’t read them. She may be walking already, not saying a word and smiling gleefully at every stranger she sees. . . . You can support her best by helping her learn what she’s trying to learn, not what the books say a typical child ought to be learning.
    Amy Laura Dombro (20th century)

    It’s always the generals with the bloodiest records who are the first to shout what a hell it is. And it’s always the war widows who lead the Memorial Day parades.
    Paddy Chayefsky (1923–1981)

    Well, fare thee well. I have known thee these twenty-nine
    years, come peascod-time, but an honester and truer-hearted
    man—well, fare thee well.
    William Shakespeare (1564–1616)

    The American Dream, the idea of the happy ending, is an avoidance of responsibility and commitment.
    Jill Robinson (b. 1936)