"Effect of Fare Change on Ridership & Revenue in Urban Transport System:"

A rider using transport service willingly pays a certain amount of fare for the quality of service received. On the other hand the transport operator collects revenue through fares to meet the cost. In this paper the author has tried to highlight on the characteristics of different fare structures, logic of setting up a level of fare, and the effect of fare change on the ridership. The objectives of a fare structure and the factors on which it depends are also discussed. The need of providing subsidy for survival of a system and the social requirements ar emphasized. The effect of cross subsidisation and the introduction of differential fare structure as a necessity for many Indian cities are also discussed.