The impact of an integrated fare system on the public transport demand: A literature review

The main purpose of this paper is to investigate the impact of fare integration on the demand for public transport and the role of IT technologies and cash-free payments in this process. The paper presents the results of a critical literature review of studies conducted in this area so far. This approach enables the integration of theoretical and empirical findings, and perspectives of fragmented and interdisciplinary studies. Fare integration in cities is one of the factors that increase the demand for urban public transport services. This results from an improved image of public transport, easier promotion of services, more eligible passenger information, and easier use of services due to the uniform regulations and fares. In addition, for travelers, fare integration means cheaper services because they do not need to buy separate tickets corresponding to various organizers or carriers. The implementation of solutions from the field of fare integration is also related to costs; one can primarily mention the transaction costs and those related to the introduction of new solutions into the sales systems. The increase in the demand for public transport services due to the implementation of fare integration, results in external benefits that affect the sustainability of city transport systems and, thereby, justifies the funding of it by the public sector, which is accountable for ensuring efficient public transport.