Bus Fare Hikes Labelled 'arbitrary'

A transport consultant says Hong Kong's five franchised bus companies appear to have chosen "arbitrary figures in their applications for fare hikes."

Alok Jain, CEO and managing director of Trans-Consult, said that unlike for the rail firms, there was no objective fare adjustment-mechanism for buses, guided – for example – by inflation or the wage index.

Kowloon Motor Bus wants to boost fares by 9.5 percent, while its sister company, Long Win Bus, wants an 8.5 percent increase. New World First Bus and Citybus have asked for an across-the-board two-dollar rise, while New Lantao Bus wants to hike fares by 9.8 percent. Citybus also wants to increase by half the fares on its airport buses.

"Fare increases in an inflationary market are inevitable," he said. "But how much and for what? Hong Kong has never seen 50 percent fare increases ever. These increase look arbitrary – there appears to be price gouging."

Jain added that the absence of any service guarantee made the fare hikes harder for passengers to swallow.

"The increases appear not to be linked to the performance of bus companies or their safety record," he said. "I think that people are willing to pay more, but they should be getting something more from the bus companies. No-one is looking at whether bus companies are delivering value for money, and that the price is commensurate with that value being delivered."