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London Underground uses Transport for London's Travelcard zones to calculate fares, including fares for use on the Underground only. Travelcard Zone 1 is the most central, with a boundary just beyond the Circle Line and Travelcard Zone 6 is the most outlying and includes London Heathrow Airport. All of Greater London is covered by zones 1 to 6.
Tickets including zone 1 are usually more expensive than those involving only outer zones. The zone system works well because the most popular destinations and the stations where lines cross are in zone 1, meaning that most journeys over similar distances will cost the same.
A few stations in the north east of the network, on the Central Line, are outside Greater London in the Epping Forest district; however, they are included in zones 4, 5 and 6. In the north west of the network, on the Metropolitan Line, zones 7, 8 and 9 (formerly A - D) cover stations outside Greater London including Amersham and Chesham in the Chiltern district of Buckinghamshire. Unlike the lower numbered zones, these ancillary areas do not encircle the capital. They only apply to the Metropolitan line and London Overground.
Some stations are located on the boundary of two zones. For example, Vauxhall is in Zones 1 and 2; passengers travelling from a Zone 1 station only need to purchase a ticket covering Zone 1, while passengers travelling from an outer Zone (Zone 2 or beyond) only require a ticket covering Zone 2 and the other zones they are travelling through.
Cubic Transportation Systems, Inc., known as Westinghouse Cubic Ltd until April 1997, has manufactured all of London Underground's ticket machines since 1987. Tickets are sold from staffed ticket offices at stations, and from various types of self-service machines. The name for the system as installed from 1987 is "UTS" (Underground Ticketing System), though this system has been enhanced and extended recently, most notably since 1998 under the Prestige initiative, where Oyster smartcards were introduced.
FFMs and MFMs give change, but only MFMs accept paper money. Tickets from TOMs, FFMs and MFMs are identical, apart from the window/machine numbering, but tickets from QBMs are slightly different, with bolder printing and a slightly different font. The QBM uses thermal printing, whereas others use impact print.
In the Travelcard illustrated below, 0762 on the bottom line represents the National Location Code of the issuing station (in this case, West Ruislip), and 30 represents the first (and, in fact, only) MFM at that station.
As a result of fares being set on a zonal basis, single or return tickets do not show a destination station - they display an 11-character abbreviation of the origin station name. Between 1987 and 1994 (when the layout of tickets was redesigned), up to 16 characters could be used for the name.
The following tickets are/were available from London Underground and Transport for London ticket agents for use on the Underground:
|Ticket||Paper||Oyster||Off peak version||Notes|
|Single||Yes||Yes||Yes (on Oyster)||Paper tickets are priced at a higher rate.|
|Day Travelcard||Yes||No||Yes||The maximum daily spend on Oyster is capped at the equivalent Day Travelcard price.|
|3-day Travelcard||No||No||No||Withdrawn from sale 2 January 2010.|
|Weekly Travelcard||No||Yes||No||Paper tickets for Weekly Travelcards are still available at National Rail stations.|
|Monthly Travelcard||No||Yes||No||Requires registration.|
|Annual Travelcard||No||Yes||No||Requires registration.|
Detailed information on tickets and pricing is available from the Transport for London website.
The fare structure for paper single tickets was simplified in January 2006. Fares for single paper tickets have been set deliberately high in order to encourage users to use either Travelcards or Oyster pre-pay fares, which are substantially lower (by up to £2.50 per journey) than paper tickets.
Return tickets are sold at twice the price of a single ticket. A Travelcard is often cheaper than a return ticket and will automatically be provided by ticket machines and ticket office staff if it is cheaper than the return fare.
Daily, seven-day, monthly and annual Travelcards are also available, allowing unlimited rides in two or more zones on the London Underground and most other forms of public transport in London, including most National Rail services, buses, Tramlink and Docklands Light Railway, but not the Emirates Air Line (cable car) cross-Thames service. Travelcards are also available for 'odd periods' of between one month and a year at some retailers. Most regular travellers use Travelcards, and they are usually better value for money than single tickets for anyone making multiple daily journeys or using multiple forms of public transport (train/tube, tube/bus, etc.). Any period travelcard is valid at any time of day, any day of the week.
Day Travelcards are valid at any time on any day, although they are usually only sold Monday-Friday before 9:30am, while cheaper Off-Peak Travelcards are only valid for use on trains & London Underground services after 9:30am on weekdays (excluding Bank Holidays) but any time on weekends & holidays. Newsagents and other designated "Ticket Stop" shops can no longer sell any form of paper tickets and now only offer Oyster facilities; one day paper Bus Passes can be obtained from ticket vending machines at some Bus Stops in Central London. Both Peak and Off-Peak Day Travelcards are valid on all journeys started before 04:30 on the day after the date of issue.
The number and combination of zones is restricted depending the type of travelcard. Travelcards for only one zone are not sold.
|1 day||1-2, 1-4, 1-6, 1-9 (where applicable)|
|Weekly and longer||At least two adjacent primary zones †|
† Paper travelcards can be issued for either 5-7, 5-9, or 5-9 + Watford Junction. Oyster travelcards for the north-west Zones 7, 8, 9, or Watford Junction (denoted as Zone 10 on Oyster cards) must include at least zones 4-6 and any other contiguous zones, i.e. 5+7, 8+9 etc. are not available for purchase.
It is worth knowing that annual tickets in London are generally "bad-priced" and there is a same price(at least years up to 2013) for Zone 1, and Zone 1-2 which make Zone 1 only buying obsolete/bad decision(the same for 7-day and monthly tickets). Also "bad-pricing" for annual is from the fact that usually(London tickets prices history) it is a waste of money for people not traveling nearly every day or making a lot of day travels. For e.g. in 2013 annual ticket cost £1,216 / 365 days gives £3.33 per day. Peak day price from 1 to 2 travel is £2.80 and maximum peak price is £8.40. This gives in most costly "peak time" situation about 2.52 than annual / day prices (£8.40/ £3.33). For unknown reasons it is made that usual people won't get most economic advantage of an annual ticket. Generally people travel not every day of week, also have public holidays, work holidays, which if spent outside of London or without using a public transport plus statistically usual free 2 days in the week and not traveling every day, also not in peak time results in similar or lower money to be paid to for the Tfl by using the Oyster card than Annual ticket. It can be strange situation because the Annual ticket requires paying quite big sum of money(comparable with wage) and should result in very cheap travel. 
In 2003, Transport for London launched the Oyster card. It is a proximity card, which on buses, trams and on the Underground allows a traveller to touch the card on one of the yellow readers positioned on the automatic entrance and exit gates rather than feeding it through a card ticket reader.
Unlike card tickets, the Oyster card is not disposable, and value - either 'pay as you go' balance or Travelcards - can be added to it at computerised ticket machines and at ticket offices. Where pay as you go credit is used the cost of each journey is deducted from a stored balance. As of October 2005, weekly, monthly and annual Travelcards issued by London Underground or directly by Transport for London are only available on Oyster cards.
The fare structure is now designed to encourage the use of Oyster cards. Daily Travelcards are not sold on Oyster Card, but a system called 'Capping' ensures that on each day of use no more than the equivalent Travelcard price is deducted. Prior to January 2010 the Oyster cap was 50p less than a Travelcard, but now the cap for Oyster and Travelcard is the same. The balance can be automatically topped up with funds from a credit or debit card when the balance becomes low, a feature known as 'auto top-up'. Tickets and pay as you go credit can be purchased via a website or over the telephone.
The Oyster card system is designed to eliminate the need to purchase tickets at the station for most users. Following the implementation of the technology London Underground intends to reduce the number of staff working in ticket offices and redeploy them in other roles.
In addition to the automatic and staffed ticket gates at stations, the Underground is sometimes patrolled by the uniformed staff who mainly stay at the ticket barriers, and very occasionally by plain-clothes ticket inspectors equipped with hand-held Oyster card readers. Passengers travelling without a ticket valid for their entire journey are sometimes required to pay a £80 penalty fare or face prosecution for fare evasion. Oyster pre-pay users who have failed to 'touch in' at the start of their journey are also considered to be travelling without a valid ticket and is liable to a penalty fare if caught otherwise they are charged the maximum fare upon touching out at the destination station.
Touts at stations can often be seen attempting to resell used Day Travelcards that they have been given by passengers who no longer need them. Transport for London strongly discourage this, officially stating that Travelcards are 'non-transferable' and thus invalid if resold. Underground staff and inspectors have the authority to confiscate tickets that they know to have been resold and to require a passenger using such a ticket to pay a penalty fare, although this is rare in practice since proving a ticket has been resold can be a difficult and time-consuming process.
In an attempt to reduce the numbers of Travelcards being used by more than one person, an experiment took place at Brixton station in 2002. A box was provided at the station exit into which passengers were encouraged to deposit Travelcards that were no longer required, and for each ticket deposited London Underground made a small donation to local charities for the homeless.
London Underground ticket machines in all stations support the following 17 languages: English, Spanish, French, German, Italian, Japanese, Arabic, Bengali, Chinese, Greek, Gujarati, Hindi, Polish, Punjabi, Tamil, Turkish and Urdu. Prior to 2009, some ticket machines were multilingual; they supported six languages and those machines had English, Spanish, French, German, Italian, and Japanese. The new languages were added as part of the Investment Programme of LU.