Farebox Recovery Ratio - Variable Fare Structures

Variable Fare Structures

Most systems aren't self-supporting, so advertising revenue and government subsidies are usually required to cover costs. However, a combination of more flexible fare structures and annual ridership figures play a big role in fare box ratios as outlined in the table below. Transit agencies that have instituted a more variable fare structure depending on distances or zones traveled have higher fare box ratios over those that rely on a flat rate model. The downside is however, variable rate fares need heavy investment in ticketing technologies and are far more complicated to implement for the transit operator and to decipher the fare for the transit rider.

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