Currently, an adult return ticket costs HK$52, with concession fares for children and the elderly at HK$23.
The company said the upgrade costs HK$700 million, with the project involving changes to both the track and the tram system.
Sunday’s the last day of service for the fifth generation of the Peak Tram, which has been around for 32 years.
Some visitors spent the day riding the service, saying they want to witness history with their family and friends.
“We took our children here to take pictures, this is our final chance to commemorate the Peak Tram,” one father said.
Others said they want the current style of the tram preserved because of its colonial characteristics.