The impact of Integrated Tariff Systems on public transport demand: Evidence from Italy

Restructuring Public Transit Systems: Evidence on Cost Properties from Medium and Large-Sized Companies

“…tariff integration among different transport modes), could significantly increase demand, thus justifying an increase in the supply of seatkilometers. In that respect, Abrate et al (2007) found on a sample of Italian LPT firms that the introduction of integrated tariff systems had a not negligible positive impact on passenger demand. Moreover, the presence of network density economies allows the regulator to devise subsidy contracts including incentive mechanisms (e.g., fixedprice schemes) that are differentiated among companies characterised by different user density.…”

Part II: Policy instruments for sustainable road transport

“…5 Integrated ticket systems, which avoid imposing costs on passengers making multi-modal journeys due to additional ticket costs or waiting time, are also considered an important factor in encouraging public transport to be perceived as a network (UK Commission for Integrated Transport, 2000). Abrate et al (2009) study a sample of 69 local public transport operators in Italy over the 1991-2002 period, and find evidence that introducing integrated tariff systems has a positive impact on the demand for public transport. Public transport policy in Madrid is also considered a successful example of integration: Matas (2004) notes that in the public transport reform, integrating the fare system in 1987 through the introduction of a travel card for the entire public transport system was of particular importance.…”

Tariff as a Tool for Financing Public Transport in Cities

“…Both on the side of current expenditure (the cost of providing services) and property expenses (including investment costs) allocated for financing urban transport, an upward trend is visible. This is determined by various factors, including the need to provide transport services for residents of developing and growing cities, the growing rate of individual motorization, the degree of amortization of fixed assets, changed consumption patterns, growing customer requirements and undertaken investments (Abrate, Piacenza, Vannoni, 2007). It should be expected that this trend will continue in the coming years, which will force changes in the method of calculating tariffs, as well as the model of providing public transport services by municipalities.…”