The Government slashed the price of public transport from April 1 to help address a cost-of-living crisis sparked by inflation and fuel prices.
In the first week of the initiative, public transport usage increased by 15% in Queenstown and 8% in Dunedin, the Otago Regional Council said.
At weekends, public transport use increased by more than 20% in Dunedin and about 15% in Queenstown.
Council transport manager Doug Rodgers said it was great to see people taking advantage of the half-price fares, which were in many cases only a dollar.
However, passengers should prepare for higher demand at peak times at the start and end of the day, Mr Rodgers said.
If demand exceeded capacity, commuters would have to wait for the next bus as no extra buses would be put on.
There was an ongoing national shortage of bus drivers, which Covid-19 had not helped.
In Dunedin, a recent increase in school services had contributed to constraints on bus services.
Passengers should spread travel across the day if possible to alleviate pressure on the network, Mr Rodgers said.
The half-price fares are set to end on June 30.