Bay of Plenty Regional Council has confirmed upcoming fare changes to Baybus OnDemand as the trial service continues to grow and evolve in Tauranga South.

Until now, Baybus OnDemand fares have been set in line with the fixed-route network fares despite offering greater flexibility and being more costly to deliver.

From Monday, April 28, the standard Baybus OnDemand fare will increase from $3.40 to $5 a trip, and from $2.72 to $4 with a Bee Card. Also, free transfers to and from the fixed-route Baybus network will no longer apply and each trip will be charged separately.

Free peak-time travel for children and youth with a registered Bee Card will also no longer be available on Baybus OnDemand.

These changes follow the six-month review of the Baybus OnDemand trial, which has shown strong patronage, but higher costs than fixed-route services since launching in March last year.

Bay of Plenty Regional Council public transport director Oliver Haycock said the fare changes were part of testing the long-term viability of the service.

“We’ve seen great uptake of Baybus OnDemand with more than 33,600 trips taken, and we’ve received very positive customer feedback. To help us better understand the financial sustainability of the service, we need to know how changes to fare levels can better support the costs of operating the service. These changes will help us do that while continuing to offer an accessible service for the community,” Haycock said in a statement.

The Baybus OnDemand trial was introduced to explore how flexible, technology-enabled public transport can better connect communities and integrate with the wider Baybus network.

Feedback from the community has been overwhelmingly positive, with many people praising the service for being easy to use, good value for money, convenient and improving access.

However, on-demand services are more costly to deliver than fixed-route buses, with the latest report (July-December 2024) showing fare revenue recovering only 7.1% of the total cost.

The fare changes align with the strategy set out at the start of the trial and reflect the need to understand long-term pricing models that balance affordability and sustainability.

Regional councillor Andrew von Dadelszen, who is also chairman of the public transport committee, said the upcoming fare changes reflected the next step in the trial’s evolution.

“We said from the beginning that this trial was about testing what works. The community’s support has shown the potential of this approach and now we’re entering the next stage where we learn more about demand, pricing and what’s needed to understand its viability moving forward.”

What customers need to know:

-From Monday, April 28, trips on Baybus OnDemand will cost $5 standard or $4 with a Bee Card (increasing from $3.40 and $2.72).

-If you are using a Bee Card, please ensure you have enough balance before you travel. Cash is not accepted.

-Each Baybus OnDemand trip will now be treated as a separate fare – you will no longer be able to transfer for free to or from fixed-route Baybus services.

-Free peak-time travel for children and youth (5-18 years) with a registered Bee Card will no longer apply to Baybus OnDemand. Discounted fares for youth still apply. Fares are $2.50 (standard) or $2 with a Bee Card. The free peak-time concession remains available on the fixed-route Tauranga urban network during the school term on weekdays before 9am and between 2.30pm and 6pm.

-Other concessions remain in place, including for SuperGold Card holders and people approved for Accessible Transport. These concessions are applied through a registered Bee Card.

Baybus OnDemand continues to operate daily between 6am and 7pm in Tauranga South. Bookings can be made through the Baybus OnDemand app, by calling 0800 4 BAYBUS, or via a Book on Behalf agent.

The 18-month trial will run until September, with a further review at the 12-month point to evaluate overall performance and future potential.

For more information, go to baybus.co.nz/ondemand