What is a fare system?
A fare is the fee paid by a passenger for use of a public transport system: rail, bus, taxi, etc. Fare structure is the system set up to determine how much is to be paid by various passengers using a transit vehicle at any given time.
How is farebox recovery ratio calculated?
The farebox recovery ratio (also called fare recovery ratio, fare recovery rate or other terms) of a passenger transportation system is the fraction of operating expenses which are met by the fares paid by passengers. It is computed by dividing the system’s total fare revenue by its total operating expenses.
What is fare and its types?
The airfare is the price that you pay to travel on an airplane. There are two main types of fares, published airfares and unpublished airfares.
Do any public transportation systems make a profit?
Public transit can be run for a profit when it is not up against free roads, cheap gas, underpriced parking, easy financing terms for new cars, etc.
How many types of fares are there?
There are two main types of fares, published airfares and unpublished airfares. Let’s dive in for a closer look.
Which of the following cities has a public transit farebox recovery ratio that is greater than 1?
Hong Kong, China. At 186% Hong Kong’s MTR has the highest Farebox ratio in the world.
What is a recovery ratio?
Benchmarks and Indicators / Cost Recovery Ratio. Cost Recovery Ratio. This is the ratio of fare revenue to total operating costs, and is a key indicator of financial performance. It may most conveniently be expressed as a percentage.
What are the different types of airfare?
The 4 Different Types of Economy Airfare, Defined
- ‘Basic’ Economy Airfare.
- ‘Main Cabin’ or Standard Economy.
- ‘Stretched Economy’ Airfare.
- Premium Economy.
- How to Find the Economy Airfare You Want.
Why public transportation is not popular?
Low density: US population density is 1/10th of India’s and quite low compared to many places in Western Europe or Japan. Public transportation requires a lot of volume to work. Urban sprawl: US cities are needlessly unwieldy. San Francisco Bay Area runs for 100km+ end to end, for instance.
Are metros profitable?
This has proved to be a very reliable transportation system and made the city liveable. Compared to other mass rapid transport system, the metro rail projects have been more capital intensive. From land acquisition to civil works, signalling, and rolling stock it is cost- intensive and cannot be a profitable business.
What is the purpose of farebox recovery analysis?
To construct the farebox recovery ratio and other benchmarks and indicators that measure the bus system’s financial performance. To assist the authority to set and adjust the fare level. To determine the degree to which the bus system can fund capital investments from farebox revenue.
What is the purpose of farebox financial modeling?
To determine the degree to which the bus system can fund capital investments from farebox revenue. To assess the ability of the authority to maintain a positive farebox debt service coverage ratio for any loans used to finance vehicle purchases and capital improvements. The financial model will have a worksheet that forecasts farebox revenue.
Are farebox revenues related to other financial benchmarks and worksheets?
The extent to which farebox revenues are related to other financial benchmarks, indicators and worksheets. In many countries that have a public monopoly bus system, the bus operator and regulator are one and the same. This creates a conflict of interest (see regulatory framework ).
Can the authority maintain a positive farebox debt service coverage ratio?
To assess the ability of the authority to maintain a positive farebox debt service coverage ratio for any loans used to finance vehicle purchases and capital improvements. The financial model will have a worksheet that forecasts farebox revenue. The contents of this worksheet and how it forecasts future farebox revenue will depend primarily on: