Fares: a History Pt 2

Part 2 of 2. See Part 1 here | Also see Conductors: a History

If matters could get any worse, they would. OPEC’s 1973 oil embargo saw both crude oil and consequently domestic inflation soar. Car use had become so ingrained by this time that escalating pump prices forced very few back on the buses. This, then, was the start of significant round of fares rises. Any pretence at purely annual increases was gone. In truth, it was easier for a country operator to gain traffic commissioners’ necessary support for fares rises (as was then required) than make service cuts. The downward cycle of fares increases, service cuts, mounting losses and tumbling demand had begun, now even in urban Britain. It was somewhat self-perpetuating and continued throughout the 1970s and 1980s, in spite of growing subsidies.

Deregulation from 1986 had for the first time the effect of introducing market driven fares dependent upon the route or whether there was competition. Where competition stimulated cheap fares, passengers enjoyed a short-term bonanza. Post-competition fares often took several years to adjust back to ‘normal’. This further weakened operators.

Where at deregulation there was no competition, fares again began increasing well ahead of inflation as passengers continued to drop off. In many markets, deregulation had failed to drive up demand. It was logical, therefore, that fares should continue their upward trend. As the larger groups coalesced during the early- to mid-1990s, so the drive for decent profit margins continued, again affecting fares.

The early years of this century have seen no real change in the economics surrounding the industry. Labour, insurance and fuel costs continued to be causes of concern. The remedy has often been above-inflation fares increases, accentuated by the need to “round” to the nearest whole 10p—to assist in collection.

In the era of free travel for people over 60, there’s now evidence that free fares reimbursement levels affect operators’ fares policies placing pressure on “walk-on” fares, while the gap between them and more static season tickets widens.

Meanwhile, simpler flatter fares have emerged as a tool in trying to generate growth.