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:
“It was announced that the trouble was not “malignant.”... It was a typical triumph of modern science to find the only part of Randolph that was not malignant and remove it.”
—Evelyn Waugh (1903–1966)
“Wine does not intoxicate people—they do it themselves; beauty does not lead men astray—they lead themselves astray.”
—Chinese proverb.
“Let those talk of poverty and hard times who will in the towns and cities; cannot the emigrant who can pay his fare to New York or Boston pay five dollars more to get here ... and be as rich as he pleases, where land virtually costs nothing, and houses only the labor of building, and he may begin life as Adam did? If he will still remember the distinction of poor and rich, let him bespeak him a narrower house forthwith.”
—Henry David Thoreau (1817–1862)
“Tax avoidance means that you hire a $250,000-fee lawyer, and he changes the word ‘evasion’ into the word ‘avoidance.’”
—Franklin D. Roosevelt (1882–1945)