Fare Adjustment Mechanism Review
More Concessions and More Savings

 

MTR Corporation and the Government have completed a review of the Fare Adjustment Mechanism (FAM). While the enhanced mechanism remains open, objective and transparent, you can also save more on fares through multiple concession schemes.

Lower fare levels for everyone
Reduced fare adjustment rate in the coming five years

To share MTR's efficiency gains with you, we will offer you a reduced fare adjustment rate in the coming five years (2013-2017) by deducting 0.5 percentage point from the rate calculated under the original mechanism. The overall fare increase rate for 2013 will therefore be 2.7%, down from the original 3.2%.

Directly sharing our success with you
A profit-related fare concession scheme

To share our success with you, a profit-related fare concession scheme (1) will be put in place. Every year, according to the profit level in the preceding year, an amount as high as $250 million will be set aside to be given back to passengers through the "10% Same-Day Second-Trip Discount" promotion. The promotion will be introduced in years when there is a fare increase. In 2013, we will be giving out $150 million.

Making fares even more affordable
Three new and improved tickets for frequent riders and an Affordability Discount

To provide more savings for specific groups of passengers who take frequent, longer-distance trips on the MTR, the following will be rolled out.

For long-distance travellers

Monthly Pass Extra
(to be launched in July 2013)

Monthly Pass Extra will replace all existing Monthly Passes(2). While the current benefits continue, with Monthly Pass Extra, passengers can enjoy a new 25% discount on the fare of any onward journey (3) they make beyond the valid stations of the individual Monthly Passes.

New Tung Chung - Nam Cheong Monthly Pass Extra
(to be launched in July 2013)

Frequent travellers on the Tung Chung Line will be able to enjoy savings of around 30% discount for unlimited rides within one calendar month between Tung Chung and Nam Cheong stations at a price of only $360. Moreover, they will also enjoy the newly introduced 25% discount for onward journeys.



For medium-distance travellers

MTR City Saver
(to be launched no later than the second quarter of 2014)

Medium-distance travellers will benefit from this brand new ticket with savings of as much as 22% per trip. Users can travel 40 trips between any two stations across different lines within a pre-designated urban area (4) in 30 days at an attractive price of $400. The ticket will be available for sale every day and not restricted to be used within a particular calendar month.



Furthermore, we will introduce an "Affordability Discount" (5) to reduce the overall fare increase rate, ensuring that the increase in fares you pay in any given year will not be higher than the year-on-year percentage increase of the Median Monthly Household Income for that year.

Commitment to excellent service
A new Service Performance Arrangement

The Corporation and each of its 15,000 staff members in Hong Kong are deeply committed to providing passengers with the safest and the most reliable world class service. While our service reliability is already among the very best in the world, a new Service Performance Arrangement will be introduced.

  • When a fault on the railway causes a lengthy service disruption (6), we will put aside a pre-determined amount to give back directly to passengers in the form of additional fare concessions through the "10% Same-Day Second-Trip Discount" promotion. The amount is set according to the duration of the delay.
  • Based on our 2012 service performance, $13 million will be given back in 2013.

Lower fare levels for all passengers

To summarize, every passenger will be enjoying more concessions and more savings from one or more of the following:

  • Each year from 2013 to 2017, all passengers will enjoy a 0.5 percentage point deduction from the fare adjustment rate calculated under the original mechanism. The fare increase rate for 2013 will therefore be revised to 2.7% from the original 3.2%.
  • All passengers will enjoy savings of $0.2 to $2.5 per trip on average if they take two trips a day when the "10% Same-Day Second-Trip Discount" promotion is re-launched in July 2013. The promotion will last for nine months until end-March 2014 with proceeds coming from MTR's 2012 profits and service performance as well as the remaining value from the 2012 FAM promotions.
  • Further savings for all current Monthly Pass users as they will enjoy a 25% discount on their onward journeys with the Monthly Pass Extra.
  • Tung Chung residents will enjoy significant savings of around 30% with the new Tung Chung - Nam Cheong Monthly Pass Extra.
  • Medium-distance travellers will enjoy a fare discount of as much as 22% with the new MTR City Saver.

Remarks:

  1. The profit-related fare concession scheme will be triggered when the profits from the Corporation's underlying business (including profits from all businesses in Hong Kong, the Mainland China and overseas but excluding investment property revaluations) of the preceding year is greater than $5 billion. The "10% Same-Day Second-Trip Discount" promotion will be introduced in years when there is a fare rise and the total amount to be spent on the promotion will be capped at half of the incremental fare revenue resulting from the fare rise for that year, with any remaining amount carried forward to subsequent years.
  2. Existing Monthly Passes include Sheung Shui - East Tsim Sha Tsui, Tuen Mun - Nam Cheong, Tuen Mun - Hung Hom and Tung Chung - Hong Kong Monthly Passes.
  3. The discount does not apply to East Rail Line First Class Premium, journeys on the Airport Express and journeys to or from Lo Wu and Lok Ma Chau.
  4. The pre-designated urban area includes all stations on Hong Kong Island and in Kowloon, Tseung Kwan O, Tsuen Wan, Kwai Chung and Tsing Yi. This offer does not apply to Airport Express journeys.
  5. Half of the "Affordability Discount" will continue to be offered in the second year while no discount will be offered in the third year.
  6. The Service Performance Arrangement will be triggered when a fault on the railway causes a service disruption of 31 minutes or more.