Public transport should be easy to understand and use, and an important part of this is perceived accuracy and fairness of tariffs. Yet, across many regions, fare structures continue to rely on zone-based systems established decades ago: legacy models that are increasingly out of step with passengers’ expectations and digital transformation goals.
Over time, these zone-based systems have become more complicated as more exceptions, special offers and ticket types were added. This led to hundreds of different products, often leaving passengers confused – especially those who travel rarely or in unfamiliar areas.
For many authorities and operators, the question is no longer whether to modernise their fare structures, but how.
Distance-based pricing offers a compelling path forward. It simplifies complexity, enhances fairness, and creates new opportunities to increase ridership, drive digital adoption and optimise revenue, all while focusing on the experience of passengers.
Zones may have once made sense, but today they present a range of challenges. Riders are often confused by zone boundaries, particularly those who travel infrequently or make short trips that happen to cross a zone line. In many cases, these trips are disproportionately expensive, leading to frustration and a perception of unfairness.
Same distance, different fares: Zone boundaries do not reflect real-world travel patterns.
Moreover, changing zone structures — whether to simplify them, merge them or remove them altogether — is politically sensitive and administratively complex. Traditional fare adjustments can take years to negotiate and implement.
Operators also face rising expectations for digital readiness, fairness and simplicity. Travellers expect pricing that is easy to understand and compare, without the need for complex calculations. Zone maps and printed fare tables feel increasingly outdated.
Distance-based pricing offers an alternative: fares are calculated based on how far a passenger travels, rather than which zones they cross. In many regions, this model is enabled by mobile pay-as-you-go (MPAYG) technology and often referred to as an e-fare or Beeline tariff.
The basic principle is straightforward:
Base fare + (distance in km * per-km rate)
Fare caps (per trip, per day or per month) can be added to ensure predictability and affordability for passengers.
This approach prevents fare jumps at artificial boundaries, and aligns payment more closely with the actual value in terms of distance of a journey.
When implementing a distance-based pricing model, two main methods of distance calculation are typically considered. Both support the same goal: to ensure transparent, fair pricing. But they differ in how journeys are measured and what that means for technical implementation.
In this model, the fare is calculated based on the actual route taken. Using location tracking, such as GPS, the system takes into account transfers, detours, and different modes of transport along the journey.
A tourist on a city tour takes a tram for just one stop, unknowingly crossing a zone boundary. The zone-based fare is € 3.90, even though the journey was only a few minutes long.
Under a distance-based model, they could have gone all the way across the city (four times as far) for just € 2.10.
Imagine a traveller boards a bus in a valley to reach the next town. Although the towns are just 5 km apart in a straight line, the route winds through hills and villages, stretching the journey to 10 km. Under an origin-destination-based fare model, the passenger pays for the full 10 km, even though the direct distance is much shorter. To ensure pricing remains fair in such cases, trip or daily fare caps can be introduced to limit the maximum charge.
Price caps ensure that prices remain fair for passengers
This model offers high precision, reflects the service delivered, and can be easy to communicate when travel patterns are familiar. However, for short journeys with longer routes, it can lead to higher fares that passengers perceive as unfair. Clear communication and application of caps help maintain trust and acceptance.
Beeline (or ‘as-the-crow-flies’) model measures the shortest distance between the origin and destination, regardless of the actual route taken. It is transparent and simple to explain to customers.
Take the scenic route again where two stops are 5 km apart in a straight line, even if the journey follows a curving bus route of 10 km. The fare is calculated based on the 5 km Beeline, using again the simple formula:
Base fare + (distance in km * per-km rate).
This approach is easy to explain, fast to configure and far more flexible for multi-operator or regional fare systems compared to zone-based pricing. It is also more immune to network changes, for example introducing new interchange points.
In addition, authorities can introduce both trip and period caps (day, week or month) to ensure pricing remains fair.
There is no one-size-fits-all solution. What matters most is that the pricing logic is perceived as fair, understandable and consistent.
In some cases, a hybrid approach can strike the right balance. For example, Aschaffenburg applies two parallel tariffs: a flat zone-based fare within the city, and a distance-based Beeline fare across the wider region. Where both tariffs apply, passengers are automatically charged the lower fare ensuring both fairness and simplicity (read more in the case study).
Regardless of the method, both distance-based models reflect a broader shift towards customer-centric, digitally enabled fare systems. With technology acting as a tool, not a barrier.
Making the TransitionA key challenge in moving away from zones is managing the transition. Running both legacy zone-based and new distance-based models in parallel may seem like a practical solution, but it comes at a cost. Maintaining dual systems for too long adds complexity for both passengers and operators. A more sustainable approach is to gradually reduce legacy products and adjust price increases to favour the new model. This helps build acceptance while providing time to refine the system. Because distance-based pricing is inherently flexible, it supports phased rollouts. And with the right digital tools, operators can trial and iterate locally before committing fully. |
Distance-based pricing is more than a fare calculation method. It is a strategic enabler that helps operators:
Solutions like the FAIRTIQ app make it possible to design, test and iterate distance-based pricing quickly, without the need for large-scale infrastructure changes. Whether a region prefers Beeline logic, route-based pricing or something in between, FAIRTIQ provides the flexibility to design a model that fits.
Join our webinar on October 23rd for practical insights, success stories and key considerations for launching your own distance-based model. You’ll hear from: