Ticketing and fare strategies PIERRE BOURBONNIÈRE CONSULTANT, TRANSPORTATION MARKETING EXPERT CANADA
Forms of payment in North America Traditional tickets Token Mag stripes Smart cards – Conventional and pre-paid Mobile ticketing NFC Mobile ticketing – Bar codes and visual Honor system Trend : Leapfrogging
RIDERSHIP IS BACK !!! RECORD RESULTS
Public transit by conviction! The urban Montrealer Public transit since it is more affordable… In transit Public transit for convenience and no stress The practical BMW. . Bus, Métro, Walking. . Hate cars! Prefer my car…. but occasionnally, at festivals or hockey…. Occasionnal Active urban I have no choice but to use public transit The constraint
Marketing objectives Business models – Revenue vs Ridership Acquisition vs retention Stopping attrition Increase utilization specially during shoulder and off-peak Improve customer experience Buy-up : Single tickets to monthly passes to yearly passes Diversified payment and fare options
Customer Relationship Management Customer Journey
Fare Strategies Personalizing the fare structure to customer segments The occasional customer Return trip (2 tickets) Unlimitted evening Unlimitted week-end The practical needing more flexibility 10 passages The In-transit - Students 4 Consecutive months Tourists with short journeys 1 jour-24 h 3 jours Families and children Groupes Family fares 7
Customer Relationship Management
Fares best suited for events Major events Allows for visual validation without loosing revenue Ensures fluidity with large crowds during events Makes it easy for Occasionnal users Fare solutions for conventions and private events Special Fare grid allowing for volume discounts for convention organizers Encourages longer stays and promotes tourism Fare allowing unlimitted access to Airport service and 24 hours use -9 -
The OPUS Card : One card with multiple possibilities Fare structure evolution Before OPUS After OPUS • Monthly pass (CAM) • 10 tickets (strip) • Weekly pass • 4 months pass (reduced) • 1 ticket • Group ticket • 6 tickets (strip) • Day pass 24 h • Touris Card • 3 day pass • 2 tickets • Unlimited evening pass New occasional pass
Targeted products Transportation Cocktail • • Complementarity to PT to delay decision to purchase a car or second car Partnership with Communauto, Bixi and others CAMPUS • • Partnership with Université de Montréal and FAÉCUM Universal pricing and universal contribution Sorties en famille (Family pack) • Up to 5 children can travel with one adult at no additional cost • Partners such as La Ronde and Museums offer entry discount
Subscription based programs generate loyalty No more line-up at the beginning of the month ! • Monthly passes are renewed automatically • Payments made via bank debit and credit cards Yearly subscription for individuals Employer programme
RETENTION, RETENTION ! 1. IMPROVE THE CUSTOMER EXPERIENCE 2. PAMPER / RECOGNIZE / REWARD / LEVERAGE PARTNERS 3. INCREASE THE FREQUENCY OF UTILISATION + OFF-PEAK 4. MIGRATION FROM INDIVIDUAL TICKETS TO MONTHLY AND YEARLY SUBSCRIPTIONS. 5. INNOVATE AND CREATE (DEFY TRADIONNAL PROGRAMS, DEVELOP A NEW 6. UNTAP THE POTENTIAL OF THE LOYALTY MODEL WITH A FOCUS ON INSTANT GRATIFICATION, ENSURING RELEVANCY WITH URBAN MOBILITY)
THE BIG IDEA ! Launch a unique reward & recognition program that allows our customers to receive geolocalized and in real time, personalized, relevant, exclusive information, offers and promotions, based on their profile, wants, usage habits and location, through a mobile application. THE RIGHT PRODUCT, AT THE RIGHT TIME, AT THE RIGHT PLACE FOR THE RIGHT CUSTOMER 14
MY PERSONNAL OFFERS *** ****
Elsewhere in the world… Simplification of fare models Reduction of fare zones – Ile de France went from 8 to 5 zones Towards a Navigo all Zone proposed in France – with subsidies from suburbs Off-peak fares « early bird » fares for bus network – Australie Fare differentiation – evening and week-ends – Vancouver Free before 7 h 45 am – Singapour No zones on week-ends – Ile-de-France Ancre the habit of using Transit with certain groups U-Pass type fares for students – Germany, USA, Canada Susbsidied fares b y employeursfor workers – Seattle Free transit for one week when moving - Allemagne 16 -
Elsewhere in the world… Ticketing trends Moble ticketing validation NFC – Bar Code – Toronto – Boston, Portland, San Diego Electronic wallet (tap-in/ tap-out) Web ticketing – Montreal - Toronto Smart card payment diversification Integrate all modes of transportattion Car sharing , Bicycling sharing, etc. Germany - Canada PT, Car sharing – Zurich Some cities integrate parking – Hong Kong In Europe and Asia, some cities include other usage of smart card Movie theatres, phone, shopping Improving the customer experience and being efficient while using Public transit Application allowing to borrow e-books while on the bus – Transdev Grocery shopping while waiting for the subway – South Corea 17 -
Thank you !
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