Image Credit: CFJC Today

By Victor Kaisar

Transit Fares

Kamloops council to review potential increases to transit fares

May 12, 2025 | 5:15 PM

KAMLOOPS — Kamloops councillors are being asked for their input — and to make a decision — as city staff conduct a transit fare review process for the first time in six years.

At Tuesday’s (May 13) Committee of the Whole meeting, councillors will be asked to pick one of four options that staff say were developed with a focus on improving cost recovery while keeping fares as low as possible.

“It is crucial in understanding the balance between increasing revenue and the potential loss in ridership when fares are adjusted,” Transportation Engineer Nii Noi Akuetteh said in a report. “Generally, steep fare hikes lead to significant ridership loss, potentially offsetting revenue gains.”

Akuetteh said at present, Kamloops transit fares are “significantly lower” than other peer transit systems in Kelowna, Abbotsford, Nanaimo and Prince George.

“Low fares make it hard to recover costs and cover higher operational expenses, hence requiring a fare review, he added, noting the last fare review in Kamloops was done in 2019.

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Bus fares in Kamloops compared to other peer transit systems. (Image Credit: City of Kamloops)

Akuetteh also said the city expects to collect less revenue because of a forecasted drop in the number of international students at Thompson Rivers University, who “represent the largest share of transit riders and the highest source of revenue for the Kamloops Transit System.”

“This projected decline in ridership, coupled with rising operational costs and planned transit expansions, underscores the need for additional revenue to maintain and enhance service quality,” Akuetteh said.

“Implementing a fare increase will help offset a decline in revenue, ensuring that the transit system can continue to provide reliable and efficient services to the community while supporting future growth and improvements.”

The four fare options being proposed by Kamloops City staff. (Image Credit: City of Kamloops)

Of the four options, Option 1 will generate about $240,000 in revenue, which Akuetteh said may not sufficiently address rising costs or inflation. It is also expected to have a low impact to ridership levels, with the potential for a five per cent decline.

While Option 2 is expected to generate an additional $360,000 in review, it may reduce ridership by seven per cent, which Akuetteh said could have a “moderate but manageable impact.”

He said Option 3, which aligns fare increases with peer systems, will ensure financial sustainability as it is expected to generate around $730,000 in revenue, “enhancing the transit system’s financial health for improvements and expansions.”

“However, the steep increase may require support measures for riders, as it is projected to result in a 13 per cent ridership decline, equating to a loss of approximately 550,000 rides,” he cautioned.

As for Option 4, it would see gradual fare increases every two years until 2029, which Akuetteh said will allow riders to anticipate the changes

“This approach ensures a steady revenue stream, aligns with budget cycles and requires long-term planning and communication,” Akuetteh said. “This option requires long-term planning and consistent communication to ensure riders are aware of upcoming changes.”

Estimated impact on transit revenue and ridership. (Image Credit: City of Kamloops)

While the report did not list a preferred option, it said based on council’s direction Tuesday, staff will work with BC Transit to implement the new fares by September this year.

It’s also possible that council decides to leave fares as is, but that will likely mean that taxpayers pay more towards transit to help cover the City’s share of costs.

The report also noted over 65 per cent of the 382 respondents to a recent survey were not excited about a fare increase. However, it also noted that 45 per cent said they will continue to use transit as frequently as they do now if there is a small fare increase, while 25 per cent said their decision would depend on the increase.

As well, it said 55-to-65 per cent of respondents wanted to see improvements like enhanced bus frequencies and on-time performance, and service reliability to justify a fare increase.

You can read Akuetteh’s report and review the results of the survey here.