👉 Fare engineering is the strategic process of setting and adjusting fares to optimize revenue, profitability, and market competitiveness for transportation providers. It involves analyzing factors such as demand elasticity, competition, cost structures, and customer segments to determine optimal pricing strategies. By adjusting prices based on these insights, transportation companies can maximize revenue, manage demand effectively, and ensure financial sustainability. This process often includes dynamic pricing models that adjust fares in real-time based on factors like time of day, seasonality, and special events. Effective fare engineering requires a deep understanding of market dynamics and customer behavior to balance revenue goals with service quality and accessibility.
