Increasing flexibility in tariff and ticketing

PTA.13
Increasing flexibility in tariff and ticketing

Feasibility study should be the first priority before considering any new products or procedures. What are the issues?  Technology, Legislation, Operator Good Will, Customer Needs should all be identified.

Cost benefit analysis. How much will it cost?  What is the likely return on investment?

How long will it take to introduce? Is technology mature or likely to change in the short term?

Is there political support for policy changes? Funding?  Who pays and how much?

Staffing – Who will manage the process? How many staff and at what cost?

Flexible fares have worked in other sectors including Air, Rail and Uber.  Most of these sectors rely on online booking allowing an individual to choose when, where and how much is willing to pay. This mindset is now firmly accepted in society.

Based on findings of feasibility study Operators and Authorities should be able to design similar products for Public Transport sector. Involving potential user groups in the design of products should assist in the development of products and services.

PTAs and PTOs should contact other businesses listed in this document to aid development of local initiatives.

Flexible tariff over day time and based on user profile (to be implemented with smart card). An example can be the shared use of seasonal subscription, combi ticket, "pay-per-use" tariff (e-purse), travel package similar to "flat" schemes as adopted in telecommunications, etc.).

Can Public Transport operators provide more attractive, flexible ticketing and tariff products? Other sectors including Mobile Phone, Multi Media (pay to view TV, Spotify etc.) have sold their products on pay as you go or monthly basis depending on the individual choice. Traditional multi trip (return, weekly, and monthly) travel cards are often regarded as expensive, although they are cheaper than paying trip by trip, as individuals may want only o travel occasionally using different operators’ services.

Off peak fares are available on rail and air services. Flexible tariffs and ticketing initiatives are aimed at making Public Transport more attractive to users.

3.7
Finance and business models
General concept
Any
Any
Attracting more customers
  • Adaptiveness to evolving markets and customer needs
  • Improving customer orientation

Launch
  • Flexible economy
  • Innovative technologies
  • Population ageing
  • Transforming household
  • Urban sprawl

Producing a range of tickets covering, off peak, weekends, targeted groups (elderly, disabled, unemployed, students, family tickets etc.).  

Identify what format tickets should be available, paper, smartcard, smart phone app etc.

Marketing plan required to promote new products.

Medium (4 to 8 months)
High (MEuro for an implementation)
Medium (between 5 and 50 KEuro)
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