A packet transfer apparatus which can switch a communication path for each of a plurality of users using the same L2TP tunnel is provided. Packet transfer apparatuses terminating L2TP contain a table specifying a flow threshold level and a priority level of each subscriber; the amount of packet flow of each subscriber is measured in accordance with the information in the table; if the threshold level is exceeded, the packet communication path is switched in accordance with the priority level specified for each subscriber. The OSPF protocol is used to manage the path information, and the information of a plurality of paths to a destination is stored in a path management table. The path is switched by specifying destination routers with the source routing option in the IP header of a packet after L2TP encapsulation.