Annex 3 Choice of Fare Structure

Fare Evasion and Revenue Protection

Fare evasion is a common feature, even in sophisticated operating environments. London Transport had advanced ticket issuing equipment and both overt and covert surveillance and inspection systems, but until state-of-the-art smart-cards were introduced, some 5% of passengers had some form of ticketing irregularity and 4% of potential revenue was lost.

Operators in developing countries typically consider that they lose 5–10% of potential urban bus revenue to passenger fraud and staff peculation: a sum comparable to their operating profit. Less technically proficient operators have identified revenue leakage of up to 50%.

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