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

Transport Committee: Evidence Ev 117
— Smartcards could provide the basis for a realistic implementation of the national concessionary
fares strategy <strong>and</strong> ITSO would provide a robust <strong>and</strong> secure technological platform for this
implementation <strong>and</strong> its integration with other schemes.
Introduction to PA
1. PA Consulting Group is extremely well placed to provide evidence <strong>and</strong> insight for the Transport Select
Committee on ticketing on public transport given our history, independence, experience, <strong>and</strong> subjectmatter
experts.
2. PA is a leading management, systems <strong>and</strong> technology consultancy with a unique commitment to the
integration of these capabilities. Established 60 years ago, <strong>and</strong> operating world-wide from around 50 oYces
in 20 countries, PA draws on the knowledge <strong>and</strong> experience of over 3,000 employees, whose skills span the
initial generation of ideas <strong>and</strong> insights all the way through to detailed implementation.
3. PA is independent of all hardware <strong>and</strong> software suppliers, <strong>and</strong> is committed to remaining so. Our
technical advice to our clients is therefore independent <strong>and</strong> untainted by any possibility of commercial bias.
4. PA is one of the leading consultancies in ticketing on public transport <strong>and</strong> specifically smartcards. Our
work includes consulting for Government Departments on ITSO; advice to private-sector organisations on
business cases; feasibility <strong>and</strong> operational deployment for smartcard schemes; <strong>and</strong> the integration of
proprietary technology alongside open-specification schemes in transport.
5. Our consultants are subject-matter experts in the ticketing on public transport environment <strong>and</strong> come
from a variety of backgrounds, including government departments <strong>and</strong> financial institutions through to
private sector transport operators <strong>and</strong> providers of proprietary smartcard technology. Specifically, our
response to this has included experts in rail retail, ticketing systems, transport economics <strong>and</strong> smartcard
technology.
Response to Specific Questions
Is ticketing suYciently integrated across diVerent modes of transport <strong>and</strong> between diVerent geographical areas?
6. There is a diVerence between integration per se <strong>and</strong> the ability to integrate. Our view is that passengers
do not necessarily want or need integrated ticketing in every case (eg, point-to-point or single-operator
journeys) <strong>and</strong> there are some situations where customers benefit from a lack of integration (for example,
being able to choose products where using a single operator has some financial benefit over <strong>and</strong> above an
integrated product).
7. The ability to integrate is however sometimes lacking, but this raises the question of why the ability is
not there. Technical integration is almost always possible rather it is the commercial will <strong>and</strong> business benefit
that tends to limit the ability to integrate. Commercial blockages will tend to be eliminated when there is a
business benefit to all parties.
8. There are good examples of integrated ticketing where it is in the best interests of the operators to
integrate (for example, the London <strong>Travel</strong>card agreement) but where there is limited business benefit in
completing integration it is unlikely to happen. This is compounded when integration involves expensive
technology developments.
Does the Government have an adequate strategy for developing the integration of ticketing systems?
9. <strong>Ticketing</strong> systems themselves (ie, the physical hardware <strong>and</strong> software) are primarily the responsibility
of the transport operator). The way that they interact with each other is often however influenced or specified
by larger bodies. The conflict here is that the Government (through its departments) does not have absolute
control over very many of the systems. Traditional rail retail systems are specified by Rail Settlement Plan,
London ticketing is determined by Transport for London <strong>and</strong> non-franchised bus operations are largely selfdetermined
(albeit with supply market dynamics at play).
10. The main involvement of the Government directly is via the Department for Transport’s ability to
specify non-traditional retail systems in new franchises (eg, ITSO-specification smartcard ticketing).
11. By definition, therefore, any Government strategy for the integration of ticketing systems when it only
has direct control over one of the modes will be diYcult to implement <strong>and</strong> enforce.
12. A more relevant issue is therefore how the Government can be more active in ensuring that
deployment of the likes of ITSO compliant systems—in particular across bus operators in a deregulated <strong>and</strong>
competitive marketplace.