Dandenong Ranges Tourism Shuttle Bus - Shire of Yarra Ranges

Dandenong Ranges
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Tourism
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Shuttle Bus
Dandenong
Ranges
www.yarraranges.vic.gov.au

A
recent feasibility study and
business case conducted
by Yarra Ranges Council,
jointly funded through the Yarra
Ranges Transport Connect
Project, has recommended that a
trial tourism shuttle bus service
be introduced to link attractions in
the Dandenong Ranges.
The Dandenong Ranges is a major day trip destination
that attracts large numbers of visitors across most of
the year. The area contributes significantly to regional
tourism, supporting a range of attractions, cafes,
restaurants, shops and accommodation.
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DandenongRanges
Between 730,000 and 1.1 million day visitors travel
to the Dandenong Ranges each year by car. These
numbers are set to increase in the future and are
expected to lead to significant issues with parking
availability and road congestion during peak visitor
periods. Providing more visitor-friendly transport options
has the potential to increase numbers and reduce
congestion during those times.
www.yarraranges.vic.gov.au

Dandenong Ranges
Tourism
Shuttle Bus
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Importance of
tourism to the region
Tourism is a significant business sector and employer in the Yarra
Ranges local economy.
Day visitor numbers are on the increase, with major attractions receiving
large numbers of visitors, for example:
• SkyHigh (640,000 per year)
• Grants Picnic Ground (560,000 per year)
• Puffing Billy (260,000 per year)
Puffing Billy
Estimate of the value of tourism to the Yarra Ranges region is
an annual tourism expenditure of $196 million, gross regional Surveys have shown high levels of satisfaction with the
output of $354 million and more than 2100 tourism-related jobs. Dandenong Ranges experience by recent visitors to the region.
Many say they are very likely to return in the next two to three
years and there is a significant return rate expected within the
next 12 months. This anticipated increase in visitor numbers will
The need for action
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The need for improved transport around the Dandenongs area,
especially for visitors, was identified as an issue by Yarra Ranges
Council (in its Tourism Policy and Action Plan), local tourism
businesses and Tourism Victoria.
Sky High
Government planning for public transport services are based on
resident needs and do not take into account tourist requirements.
For visitors who come to the area by public transport (train
connecting to local bus services), current services generate long
exacerbate current transport, congestion and parking problems.
The distribution of attractions and villages means that they could be
connected effectively by a shuttle bus that would link experiences in
the Dandenong Ranges and improve visitor mobility across the area.
About the feasibility study
In 2010, the Yarra Ranges Council commissioned a feasibility study
on the proposal for a shuttle bus service to connect townships and
attractions in the Dandenong Ranges area. The study involved a
detailed market review and analysis. It included consultations with
organisations and businesses in the region, onsite surveys of tourists
and local residents, and an online survey of recent visitors to the
area.
While the results indicate a high willingness to pay for a park
and ride shuttle bus service, and provided information for the route
and timing of a shuttle service, the major recommendation
is to implement a trial period of operation (from January to May
on weekends and public holidays) to test demand and market
requirements.
Benefits of a tourist shuttle
journey times due to bus frequencies, waiting times and the
A tourist shuttle bus would benefit the region by:
travel path of the bus routes. Public bus services are generally
not effective for tourist use and adjustments to public transport • boosting visitor numbers
timetables are unlikely to meet their specific needs.
• encouraging visits to multiple attractions
Dandenong Ranges the place to be
www.yarraranges.vic.gov.au

• reducing traffic congestion
• resolving parking issues during peak periods
• reducing environmental impact
• assisting the visitor experience in planning itineraries,
navigating and identifying car parking options.
Brants Picnic Ground
Proposed route
The shuttle bus would link key attractions and major villages in the
area. Survey results supported a proposed route that includes stops
at Olinda, Sassafras, Mt Dandenong Village, SkyHigh, Ferntree Gully
1000 Steps, Grants Picnic Ground, William Ricketts Sanctuary, National
Rhododendron Gardens and Belgrave.
Service periods
Results indicate families and couples are key visitor groups and that
most visits occur on weekends during summer and autumn,
particularly between January and May and during holiday periods,
over an eight-hour time span.
Frequency and reliability
Frequency is one of the most important factors to consider in the
design of the service, which should be ‘hop-on, hop-off’. On the
proposed route, two buses are required to secure a frequency of
just under one hour, and three buses would be needed to achieve
a 30 minute frequency.
Key survey results
The surveys and consultations showed support for a user-pays,
commercially sustainable shuttle bus service in the Dandenong
Ranges.
Target market
Day trip visitors are the major market for a service, including people
travelling by car to the area (park and ride) and people travelling
to the area by train. The surveys indicate a high level of potential
use of a service that was linked to a railway station (Belgrave).
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International and overnight visitors form a much smaller percentage
of visitors to the area, so they are not expected to be a significant
market for the shuttle service. Residents indicated that they are
unlikely to use the shuttle bus service at a price point of $10 or
above for a day trip, and timing of a shuttle service for tourists is
unlikely to align with times residents travel to school or work.
Once the service is established and is financially viable, other
value-add markets can be explored. These could include overnight
visitors, transport between accommodation and restaurants, or
a service that delivers overnight bags direct to accommodation
venues.
Reliability of the shuttle service will be essential. For visitors
coming to the area by public transport, it will be important that
shuttle bus schedules align with the times for Metro Trains and
public bus schedules at Belgrave.
Pricing
A range of pricing was suggested for the park and ride service
(including parking) from $10 per trip, with different rates for single
adults, single concession, couples and families (families were the
most common travel group). There were suggestions to package
the shuttle bus with vouchers to local businesses, such as coffee,
meal and gift vouchers, and admission to attractions.
The onsite consumer intercept surveys indicated a preference to
purchase tickets on the bus, and online as pre-booked tickets.
Type of bus
Operating costs were estimated for a two-bus service using two
different bus sizes: a 21-seat and a 44-seat. Existing bus companies
operating public bus services have shown interest in operating
the shuttle, providing demand levels can be demonstrated.
Dandenong Ranges the place to be
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Return on investment
Price sensitivity analysis shows that an operator could be expected
to see a return on investment within one year, based on a take-up
rate of 18% by current visitors for a 21-seat bus and 16% by current
visitors for a 44-seat bus coming to the Dandenong Ranges. This
would see revenues per annum of $46,000 for a 21-seat bus
operation and $100,000 for a 44-seat bus operation.
Marketing
Marketing needs to be targeted at domestic day visitors through
a range of channels. It should involve Yarra Ranges Regional
Marketing, the bus company and a range of partners, such as
Metro Trains Melbourne, Dandenong Ranges attractions and
Tourism Victoria.
Recommendations
The feasibility study made a number of key recommendations.
• Establish a hop-on, hop-off shuttle bus service on a trial basis
The service should initially be an hourly weekend and public holiday
service operating January to May (49 days of operation) for eight
hours per day between 10am and 6pm.
• Focus on domestic day trip visitors initially
The service should primarily focus on domestic day trip visitors
(park and ride, and train travellers). Other markets can be explored
in the future.
Dandenong Ranges
For further information on this business
opportunity, or for a copy of the full
feasibility study and business case,
contact Council’s Economic Development
Unit on 9294 6187 or email
business@yarraranges.vic.gov.au
• Fund the service on a user-pays basis
The service should operate on a user-pays basis, with parking
included in the ticket price. The price should be based on single,
couple and family rates.
• Develop an active and targeted marketing strategy
Day visitors need to be made aware of the service when they are
planning their visit. Marketing should be targeted through a range
of channels and conducted by all partners.
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Next Steps
• Promote this opportunity to the private sector and other key
stakeholders.
• Establish a trial to test the market and operating model.
• Develop and implement a marketing campaign for the trial.
• Evaluate the success of the trial and explore additional packaging
for the shuttle bus service.
The Yarra Ranges Transport Connect Project was
funded through the Victorian Government’s Transport
Connections Program, a cross-government initiative
to help communities with limited transport options
improve access to services and activities. For more
information on the Yarra Ranges Service Access
Project currently funded by the Transport Connections
Program, contact the Service Access Coordinator
on 1300 368 333.
www.yarraranges.vic.gov.au