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.
Fare structures There are generally two types of fare structures: a simple, flat rate fare structure (pay a fixed fare regardless of time of day and/or travel distance) or a complex, variable rate fare structure (pay a variable fare depending on time of day and/or travel distance). A variable fare structure is typically associated with a higher recovery ratio, though it may simply be the case that such systems are implemented only on more profitable networks or modes such as commuter rail. Variable-rate fares require a higher initial investment in fare ticketing technologies such as the use of contactless smart cards, turnstiles or fare gates, automated ticket machines, as well as IT infrastructure.Dr. Jean-Paul Rodrigue, The Geography of Transport Systems, Third Edition, 2013
Farebox ratios around the world The farebox recovery ratio is the ratio of fare revenue to total transport expenses for a given system. These two figures can be found in the financial statements of the operators. Oftentimes the operator runs multiple modes of transport (e.g. subway and bus), and there is no data for individual modes (segment analysis). In this case the operator is considered as one system, or a group of modes are collectively considered one system.
Fare revenue is not the same as "transport" or "operational" revenue, as there are often secondary sources of revenue such as lockers and paid restrooms and advertisement revenue. Fare revenue is a subset of transport revenue, which is in turn part of total revenue along with "non-transport" or "non-operational" revenue.
Total "transport" or "operational" expenses are a part of total expenses along with "non-transport" or "non-operational" expenses. Total transport expenses may include expansion projects if they are paid for by the operator.
Asia Please note that, the "operating ratio" ( ) commonly published by some Asian systems is different from farebox recovery ratio even after inverting the number to turn cost per unit revenue into revenue per unit cost, as that figure includes all operating revenue instead of only the fare revenue."JR&私鉄全路線の収支 「営業係数」計算式を大公開", 週刊東洋経済臨時増刊 鉄道完全解明2014, p.61-62, February 20, 2014 Country or Region System Ratio Fare system Year Hong Kong Mass Transit Railway (MTR) 106.76% Mostly Distance based 2021 Hong Kong Tramway 48.80% Flat rate 2021 Kowloon Motor Bus 100.05% Route-specific 2021Long Win Bus 77.91% Citybus 72.98%Combined both Franchise 1 & and Franchise 2. 2021 New World First Bus 76.73% Japan JR Central Rail 245.95% Distance based FY2018鉄道統計年報［平成30年度］：（5）－2 鉄・軌道業営業損益：((旅客収入 + 貨物収入) / 営業費合計(諸税･減価償却費を除く) ) * 100% (((Passenger revenue + Freight revenue)/(Operation cost before taxes and depreciation))*100%) JR East Rail 142.44% JR West Rail 132.38% JR Kyushu Rail 111.34% JR Shikoku Rail 69.84% JR Hokkaido Rail 59.18% JR Freight Freight rail 96.25% Sapporo Municipal Subway 220.79% Sapporo Streetcar 104.31% Flat rate Hakodate Streetcar 82.87% Distance based Sendai Subway 159.68% Mixed zonal and distance based Tokyo Metro 161.55% Distance based Tokyo Toei rail services 74% 2015 Tokyo Toei Subway 171.46% FY2018 Tokyo Toei Streetcar 83.39% Flat rate Tokyo Toei elevated rail 109.84% Tokyo Toei other rails 136.81% Distance based Yokohama Municipal Subway 232.28% Meitetsu Railway 155.99% Meitetsu Tramway 90.70% Nagoya Municipal Subway 167.24% Kintetsu Railway Rail 152.77% Kintetsu Railway Cable 36.70% Various Nankai Electric Railway Rail 161.26% Distance based Nankai Electric Railway Cable 31.12% Flat rate Keihan Electric Railway Rail 166.51% Distance based Keihan Electric Railway Subway 29.05% Keihan Electric Railway Streetcar 73.08% Keihan Electric Railway Cable 71.73% Flat rate Hankyu Railway 123% Distance based 1991Dr. Kenichi Shoji, "Lessons from Japanese Experiences of Roles of Public and Private Sectors in Urban Transport" , Japan Railway & Transport Review, December 2001 169.74% FY2018 Hanshin Electric Railway 146.75% Osaka Municipal Transportation Bureau 137% 1991 Osaka Metro Subway 208.51% FY2018 Osaka Metro APM/AGT 105.35% Kyoto Municipal Subway 201.04% Kobe Municipal Subway 169.52% Nishi-Nippon Railroad Rail 149.92% Fukuoka City Subway 205.38% Kitakyushu Monorail 144.15% Tabular Nagasaki Electric Tramway 105.11% Flat rate Kumamoto Tram 102.60% Kagoshima Tram 98.36% Okinawa Urban Monorail 187.55% Distance based PakistanLahore Metrobus 37.2% Flat rate 2014 Taiwan Taipei Mass Rapid Transit 87.64% Distance based 2021 Kaohsiung Mass Rapid Transit 52.57% 2020 Singapore SMRT Corporation (Singapore) 101% 2018 China Beijing Subway 22% Flat rateFare schedule was adjusted from flat rate to distance-based on 2014 () 2013地铁票背后的"算计" (in Chinese) 01 Dec 2014 35.08% Distance based 2021Fare revenue / Associated costs (票款收入/票款成本). Associated costs (票款成本) includes depreciation. Shenzhen Metro 82.20%Total expenses to fare revenue ratio -1 (成本费用占营业收入的比重) 2021Guangzhou Metro 77.05%1/(100%-gross margin of passenger service) (1/(100%-地铁运营业务毛利率)) 85.0% if divide Operating Revenues by Total Operating Cost (营业收入/营业总成本). Operating Revenues include fare, advertisement, real estate, R&D, government subsidy etc. Total Operating Cost includes capital expenses. 2021
Europe CountryRegion / City System Ratio Fare system Year AustriaVienna Vienna U-Bahn 49% Flat rate2008 GermanyBerlin Berliner Verkehrsbetriebe 70% Zone based 2010 BelgiumBrussels Brussels Intercommunal Transport Company 35% 2007 CzechiaPrague Prague Integrated Transport 17% Flat rate 2022 DenmarkCopenhagen Copenhagen Metro 95.2% Zone based 2025Jutland, Funen, ZealandDanske Statsbaner59%Zone based2025 FranceParis Île-de-France Mobilités 38% Flat rate 2018 GermanyMunich Munich Transport and Tariff Association 70% Zone based 2010 ItalyMilan Milan Transportation System 49% 2016Rome Rome Metro 36% 2007NetherlandsAmsterdam Gemeentelijk Vervoerbedrijf Amsterdam 88% Distance based 2018Rotterdam Rotterdamse Elektrische Tram 99% Distance based 2018 PolandWarsaw ZTM 37% 2019 SpainCatalonia Metropolitan lines of Ferrocarrils de la Generalitat de Catalunya (Catalonia) 93% Zone based 2014Madrid Madrid Metro 41% 2007 SwedenStockholm Storstockholms Lokaltrafik 52% Flat rate 2017Kalmar County Kalmar länstrafik 43% Zone based 2023Östergötland County Östgötatrafiken 47% 2024 SwitzerlandZurich Zürich S-Bahn 60% 2014 FinlandHelsinki Helsinki Regional Transport Authority 49% 2019 TurkeyIstanbul Metro Istanbul A.S. 90% Flat rate 2019 United KingdomLondonLondon Underground 129.50% Zone based 2022-2023London Overground and Docklands Light Railway94% 2018–19
North America
Canada +Canada Farebox recovery rateRegionOperatorFare Revenue ($000s, CAD)Operating Expenses ($000s, CAD)RatioFare SystemYearNationwideVIA Rail$408,400$812,50050.3%Distance & demand based2023British Columbia CoastBC Ferries$759,073$985,19677%Flat rate2025BramptonBrampton Transit$125,102$233,75253.5%2024CalgaryCalgary Transit$147,400Calculated from $175.6 (million, CAD) total revenue and non fare revenue growth of "$4.7 million (or 20 per cent)" for a calculated non-fare revenue of $28.2 million CAD$437,90033.7%2023EdmontonEdmonton Transit System$123,841$623,51319.9%2024MississaugaMiWay$101,400Extrapolated from $114,407 (k, CAD) in shortfall funding and 47% cost recovery (p. 184)$215,80047%2024MontrealSociété de transport de Montréal46%2016Annual report 2016 stm.infoOttawaOC Transpo$289,773$724,38640.0%2024Quebec CityRéseau de transport de la Capitale39%2011Greater Toronto and Hamilton AreaGO Transit$429,200$1,816,90023.6%Distance based2023TorontoToronto Transit Commission$937,934$2,392,24539.2%Flat rate2023VancouverTransLink46.4%Zone based; transition to distance based upcoming2024VictoriaBC Transit (Victoria regional transit system) 28.4%Flat rate2022WinnipegWinnipeg Transit$92,544$218,98542.3%2024Regional Municipality of YorkYork Region Transit$75,000Calculated from p. 41. "Transit fare revenues are forecast to increase by $10.2 million in 2025 to $85.2 million..."$304,29124.6%Calculated from fare revenue and operating expenes.2024
United States