Social service provision
Measuring the transport burden on poor households: Where governments have set certain limits on bus fares so that they do not exceed a certain proportion of household income it’s important to be clear how this standard is to be measured and to adopt a consistent approach over time.

Often gross domestic product (GDP) per household is a more stable and available measure of income than any other and it may be wise to tie any standards to GDP per household.

In terms of fares to be paid, if an all-route monthly pass exists this should be used as the basis of the fare paid. Otherwise some average fare per passenger has to be used but the method of calculating this must be standardized.

Identifying target groups for support: In most cities children, students, seniors, and persons with disabilities travel at concessionary fares — usually half price. This concession is not usually linked to ability to pay or family income. If other groups are to be targeted for support this would normally be done following some political directive to assist, say those households earning less than some specified amount or those households receiving social security.

For these and any other concessionary fares, it is necessary for the operator or the government to estimate the amount of travel likely to be made by the targeted group and to ensure that there is budget to cover any shortfall in revenue. The application of concessionary fares is possible with most bus system structures other than a deregulated structure.

However as for other objectives, it can be accommodated more easily in some structures than others and this should be taken into account in the selection of the reformed structure.

Targeted concessionary fare or free transport systems, using pass or token systems, may be employed although these can sometimes be complex to administer and can be open to abuse if the benefits are significant. If such systems are to be adopted then they should be clearly spelled out in any operating contract and the procedures to deal with them also defined.

Other sources of earmarked revenue: If there are sources of revenue to be available for bus services in addition to the fare revenue and direct subsidy (e.g., any tax levies specified for public transport) then these must be taken into consideration in deciding the bus system reform structure. Again some structures can easily accommodate such revenues — monopoly or gross cost structures are the best. But others, such as various net cost approaches, may pose some difficulties if these revenues are to be apportioned between several operators.