De Lijn faced with pricing dilemna

The Flemish public transport company, De Lijn, has previously announced its need to drastically reduce costs and come up with an additional €17 million to maintain services. The company is therefore considering the possibility of increasing its ticket prices by 5%. However, such a measure would likely take a large toll on passenger numbers, according to a price sensitivity study by De Lijn, reports De Morgen.

De Lijn is already taking measures to generate extra income, including charging €180 for an annual subscription for people over the age of 65, who in the past travelled free of charge, and raising the price of a Buzzy Pass for youth between the ages of 6 and 24, from €183 to €200.

However, a general 5% increase in ticket prices would have a negative effect on sales, according to the study. If the ticket prices were to go up by 5%, then demand would in turn fall by 5%, which translates into the loss of some 27 million tickets out of a total of 540 million passengers in 2013.