For decades, public transport pricing models have largely revolved around two options: single tickets for occasional trips and season tickets for frequent users. However, as work patterns become more flexible and mobility habits shift, these rigid structures no longer serve evolving user needs effectively.
Single tickets are often under-consumed due to cost concerns, while passes can lead to overpayment for those who do not use public transport frequently enough to make them worthwhile. This can result in passenger frustration and revenue loss for operators if passengers do not use public transport because they perceive fare products to be poorly adapted to their needs and too expensive. Public transport providers face an important challenge: how to create a pricing model that is both fair to passengers and financially sustainable for operators?
Rigid pricing models no longer accommodate today’s diverse mobility needs. With the rise of hybrid work, part-time employment, and multimodal travel, passengers are looking for pricing structures that reflect their actual usage. The traditional "all-or-nothing" choice between single tickets and season tickets does not align with evolving travel patterns.
Key pain points in traditional pricing:
“Too complicated? I’ll just drive.”
When public transport fares are confusing, people look for easier alternatives. A survey by the Rail Delivery Group found that 35% of potential train passengers are discouraged from travelling because they struggle to find the best fare. Faced with this complexity, many simply opt for the car or a rideshare instead. (Source)
Public transport providers are increasingly exploring dynamic models that offer greater flexibility for customers while maintaining revenue stability. FAIRTIQ’s innovative solutions help authorities and operators implement pricing structures that adapt to passenger behaviour.
In practice: A-Welle’s new discount modelA-Welle, a Swiss fare association, has introduced an innovative discount system in collaboration with FAIRTIQ. The model benefits occasional riders by automatically applying discounts based on accumulated travel. This means:
This model, which was shortlisted for the Transport Ticketing Global Awards in the "Best Commercial Strategy Initiative" category, blends the best of both worlds: the flexibility of single tickets with the cost savings of a season ticket, while encouraging increased ridership. |
What if pricing models could automatically adjust to each passenger’s habits without requiring complex decision-making? Several forward-thinking approaches are already demonstrating success:
Charging the fare based on the shortest route from the point of departure to the point of arrival, as seen in Freiburg and Aschaffenburg ensures fairness and transparency.
VAB’s e-Fare: Charges based on actual “as the crow flies” travel distance instead of fixed zones, ensures simplicity. Daily fare caps prevent excessive costs, benefiting occasional and frequent riders alike. (Read the case study)
Ensuring passengers never pay more than a daily, weekly, or monthly limit makes travel more predictable and accessible.
NRW’s Monthly Cap: Once passengers who travel across the state of North Rhine-Westphalia in Germany spend €34.50 in a single day or €58 in a month, all further travel is free, statewide. This provides cost predictability and flexibility, offering season ticket-like benefits without requiring upfront commitments. The model appeals to both occasional and frequent travellers.
Rewarding frequent users without requiring season tickets can increase ridership and customer satisfaction.
HAVAG’s Instant Rewards: Passengers who reach a set number of journeys receive immediate fare discounts, leading to a 20% increase in public transport spending. Real-time incentives encourage higher usage and customer retention. (Read the case study)
✨ Occitanie’s Fare Magic: Flexibility for Every TravellerOccitanie, a southern region of France, has become a trailblazer in flexible pricing with its SNCF TER services. Its "+ = ..." campaigns make fares fairer, smarter, and more attractive, powered by FAIRTIQ technology: + = 0: Young passengers (18-26) ride for free after just 10 journeys in a month—no season ticket needed. If they make 21+ trips, extra rides are converted into credits for future travel. + = Flex: Users (27-59) earn increasing discounts with every journey; beyond a threshold, rides are free or credited forward. + = -: Adults 60+ also pay less the more they travel, with capped monthly costs. This trio of models is backed by transparent, distance-based pricing (“as the crow flies”). And the results? They speak volumes:
By blending fare caps, loyalty rewards, and intuitive pricing, Occitanie has created one of Europe’s most forward-thinking fare strategies. |
By leveraging smart technology and real-time data, transport operators can increase ridership, enhance customer satisfaction, and stabilise revenue streams.
The shift from rigid single-ticket and season ticket models to flexible, user-friendly pricing structures is already in motion. With solutions like FAIRTIQ’s seamless fare innovation, transport providers can develop systems that cater to all passenger types—occasional riders, daily commuters, and the industry as a whole.
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