Ticketing and Concessionary Travel on Public Transport - United ...

Transport Committee: Evidence Ev 73
2. Does the Government have an adequate strategy for developing the integration of ticketing systems?
2.1 The Government has made an important step in facilitating easier integration between modes by
m<strong>and</strong>ating ITSO as the national public transport smartcard st<strong>and</strong>ard. Going forward, this will provide a
common platform for schemes on all modes. By specifiying the format of data across each interface, ITSO
enables scheme implementers to mix <strong>and</strong> match their system component suppliers in the knowledge that they
will be able to work together.
2.2 However, technical solutions need to be complemented by commercial strategies that ensure
incentives exist for deals to be made between diVerent ITSO users. Clearly, there needs to be a business case
to support each such strategy.
2.3 It is important that scheme promoters—whether they are public authorities promoting concessionary
travel schemes, or bus or rail operators promoting their own commercial ticketing schemes—should drive
forward the appropriate commercial mechanisms. They are best placed to ensure that they are appropriate,
adequate <strong>and</strong> eVective in achieving the desired objectives.
3. Is the industry taking up modern smartcard technologies adequately <strong>and</strong> appropriately?
3.1 The last 12 months has seen the rail industry increasingly take up smartcard technologies, spurred on
by inclusion in rail franchises as they come up for renewal as well as local authority sponsorship of ITSObased
concessionary schemes. Stagecoach is fully supportive of the take up of smartcard technologies in the
bus <strong>and</strong> rail industries <strong>and</strong> is actively developing schemes for its bus <strong>and</strong> rail companies.
3.2 It is widely accepted that it is diYcult to make a st<strong>and</strong>-alone case for commercial smartcard systems
on buses. However, the business case improves considerably when the system infrastructure is already in
place. Thus the introduction of nationwide smartcards for concessionary travel on buses is an important
first step in developing the use of smartcards for commercial ticketing applications.
4. Does the ITSO system cater for the needs of all passengers <strong>and</strong> travel providers?
4.1 In theory, there is no reason why ITSO cannot cater for the needs of all passengers <strong>and</strong> travel
providers. As ITSO is an open st<strong>and</strong>ard, it has the added advantage that a scheme promoter does not need
to lock in to one sole supplier. This has further benefits when consideration is given to system replacement,
which can be undertaken on a component-by-component basis. However, as discussed earlier, while ITSO
deals with the technical issues arising from the need to operate from a common smartcard platform, it does
not in itself address commercial issues. Whether the necessary commercial agreements that drive integration
are made will depend on operators being incentivised to make a positive business case.
5. What can be learned from the experiences of areas such as London <strong>and</strong> Scotl<strong>and</strong> where smartcard technology
is already in place?
5.1 London has worked well as an example of how a transport smartcard can work, although it has also
thrown into relief some of the issues that need to be overcome. On the positive side, Oyster works well from
the customer point of view, as it is popular <strong>and</strong> flexible. There is no doubt that the rapid movement of
passengers over to Oyster has been very heavily influenced by pricing strategies that charge significant
premiums to passengers choosing to pay with cash. On the systems side, the use of a PFI contract between
TfL <strong>and</strong> a sole supplier has created numerous hurdles to the eVective <strong>and</strong> rapid rollout of Oyster to TOCs.
The principles behind the ITSO platform are far more straightforward in permitting the organic growth of
individual schemes <strong>and</strong> linkages between them.
5.2 In Scotl<strong>and</strong> the scheme is still in the implementation phase, but it is already producing benefits for
the rest of the UK in that a number of ticket machine suppliers have been contracted to provide the necessary
on bus equipment to the ITSO specification. They will, therefore, be well placed to provide equipment for
English systems when called upon to do so.
Revenue Protection <strong>and</strong> the Powers of Ticket Inspectors
6. Is the legal framework within which ticket inspectors function appropriate?
6.1 Stagecoach Group believes the legal framework in which ticket inspectors operate appears both fair
<strong>and</strong> reasonable. We believe the respective rights of passengers <strong>and</strong> ticket inspectors are well balanced <strong>and</strong>
appropriate, providing they are properly <strong>and</strong> consistently applied <strong>and</strong> managed.