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

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Ev 120 Transport Committee: Evidence About The Trainline Memor<strong>and</strong>um from Trainline.com Ltd (TPT 18) 1. The Trainline is the UK’s leading rail ticket retailer <strong>and</strong> information provider. We currently sell just over six per cent of the UK’s surface train tickets by number of journeys, through a dedicated website <strong>and</strong> call centres <strong>and</strong> an associated fulfilment/distribution function. 2. The company was founded in 1997, initially as an online sales mechanism for Virgin Trains, but since 2002 has been independently owned by private investors <strong>and</strong> has no preferential relationship with any of the UK’s Train Operating Companies (TOCs). 3. In addition to its br<strong>and</strong>ed website at www.thetrainline.com, the company works with the majority of Train Operating Companies (TOCs) to provide the IT infrastructure for their online ticketing services, <strong>and</strong> also provides ticketing direct to a number of large companies, public sector organisations <strong>and</strong> service providers in the travel sector (eg Barclays, BT, the MoD <strong>and</strong> Carlson Wagonlit <strong>Travel</strong>). 4. The Trainline also provides a number of Oyster Cards to our business customers in London <strong>and</strong> welcomes the recent news that TOCs have agreed to work with Transport for London to roll out Oyster across the London rail networks. 5. We are at the forefront of the market in delivery of new methods of ticketing <strong>and</strong> are engaged in the development of new technology to improve customer experience <strong>and</strong> reduce TOC costs in this respect. For example, we are currently developing “airline-style” ticketing in collaboration with Virgin Trains <strong>and</strong> supports calls for increased simplicity. In addition, we are currently developing innovations along the lines of “smart ticketing”—including use of mobile technology, smartcards <strong>and</strong> print at home e-tickets. 6. As a specialist ticketing provider, our response to this inquiry focuses on questions 1 to 5 regarding ticketing arrangements. Integrated <strong>Ticketing</strong> Is ticketing suYciently integrated across diVerent modes of transport <strong>and</strong> between diVerent geographical areas? 7. No. The modal ticketing systems in the UK do not generally work well together when compared with those in other European countries. Diverse ticket fulfillment methods <strong>and</strong> the lack of data lie behind poor integration across modes, a situation exacerbated by the optional nature of integrated ticketing between modes in the UK. 8. Universally accepted methods of ticket fulfillment, data <strong>and</strong> a legal requirement to be part of an Integrated Fares Management System are the primary requirements for large-scale adoption of integrated ticketing in the UK. Does the Government have an adequate strategy for developing the integration of ticketing systems? 9. The Trainline has concerns about the adequacy of the Government’s strategy for improving the degree of integration. Experience around the world indicates that for integrated ticketing to be used extensively by the travelling public, both the tickets <strong>and</strong> related information must be widely available for the diVerent modes concerned. This requires an open approach to the availability of data, which is a pre-requisite to the wider adoption of integrated ticketing. The take-up of integrated ticketing in the UK could therefore be enhanced if the licensing of public transport services were to go h<strong>and</strong> in h<strong>and</strong> with an obligation to make timetable, routing <strong>and</strong> fares information available directly to the public <strong>and</strong> indirectly though other carriers <strong>and</strong> ticket retailers in the transport industry. The provision of timetable <strong>and</strong> ticketing information should be m<strong>and</strong>ated to be in the st<strong>and</strong>ardised formats already agreed by the transport industry according to ISO/ FDIS 24014-1 (international St<strong>and</strong>ard for Public Transport Interoperable Fare Management Systems). 10. Interoperable fare management systems can exist co-operatively together—but a Common Requirement Specification for Interoperability (CRSI) is needed for them to collectively operate in an integrated manner. DfT should tender for <strong>and</strong> implement such a CRSI (compliant with ISO 24014) <strong>and</strong> pump-prime an independent cross-transport organisation to have responsibility for this activity which would have the necessary integrated transport vision. Combining this organisation with ITSO (Integrated Transport Smartcard Organisation) would have the added benefits of being able to manage the security necessary for smartcard fulfillment, which is likely to be the universally accepted fulfillment method for transport tickets across multiple modes.
The Use of Smartcard Technologies Is the industry taking up modern smartcard technologies adequately <strong>and</strong> appropriately? Transport Committee: Evidence Ev 121 11. The adoption of the Integrated Transport Smartcard Organisation (ITSO) specification by the DfT for public transport operators in the UK is very much to be welcomed, since it is an internationally recognised open specification which allows the implementation of Integrated Fares Management systems <strong>and</strong> the common acceptance of smartcard fulfilment across multiple modes. 12. It is also appropriate that the DfT is seeking to implement convergence with the earlier Oyster system <strong>and</strong> conversion of other proprietary systems in English cities. These actions considerably increase the likelihood of successful integrated transport provision in the UK in the next decade <strong>and</strong> encourage retailers <strong>and</strong> product owners to participate in multi-mode integrated ticketing. Our view is that, from a technical implementation perspective, two years represents a realistic time frame for ITSO convergence with the London Oyster scheme, <strong>and</strong> that both organisations should be encouraged by Government to deliver this desirable objective. 13. In the rail industry, a relatively rapid adoption of season tickets on smartcards could have a significant impact on ticket oYce <strong>and</strong> self-service transactions at stations, which has to be balanced against the benefit to customers. The introduction of multi-journey <strong>and</strong> other new products will also have an impact on station transaction volumes. It is likely that the use of smartcards will also be encouraged by the use of loyalty-type features oVered to cardholders. 14. The consequences of the reductions in transaction volumes by up to 60% at stations should be addressed in policy terms by the DfT in order not to delay smartcard adoption by existing rail franchisees. The DfT should also consider the eVect of current regulations <strong>and</strong> agreements on the take-up of innovative customer-service options so that regulatory concerns do not slow smartcard adoption. For example, customers will be less likely to purchase tickets at stations, even though station queuing times often represent franchise commitments. Related franchise terms may therefore need to be altered to take this into account. Does the ITSO system cater for the needs of all passengers <strong>and</strong> travel providers? 15. Yes. It is our opinion that, with the notable exception of Oyster within the Transport for London area (examined above) the ITSO specification covers all existing UK transport tickets <strong>and</strong> also allows the creation of new, innovative products. It is, however, essential that ITSO remains independent of product owners <strong>and</strong> transport operators. 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? 16. Oyster “Pay as you go”, together with zonal pricing, are attractive to passengers in London <strong>and</strong> the desire from passengers to extend these features to London rail services <strong>and</strong> beyond would indicate that similar products using ITSO Stored <strong>Travel</strong> Rights <strong>and</strong> Charge To Account will be equally popular. This in itself could lead to a major simplification of rail ticketing products over a relatively short period of time following the introduction of smartcards. 17. A growth in dem<strong>and</strong>-managed fare products is likely to happen h<strong>and</strong> in h<strong>and</strong> with product simplification. Adequate measures to protect passengers from unintentionally large changes in fares through the combined eVects of product simplification <strong>and</strong> dem<strong>and</strong>-management should be considered by DfT. 18. It is also clear from both the London scheme <strong>and</strong> the Scottish scheme that the infrastructure cost <strong>and</strong> project complexity for implementing smartcard readers is a significant concern for transport operators <strong>and</strong> is a one-time expenditure which does not fit easily into current franchise <strong>and</strong> carrier contractual arrangements. DfT should provide a lead in establishing a financing mechanism for this capital investment that allows it to be managed away from the balance sheets of the transport operators through a facility independent of both government <strong>and</strong> operator. 19. The changes to distribution strategy brought about by the introduction of smartcards elsewhere has generally resulted in improved customer perception of the transport network <strong>and</strong> increased patronage. It is recommended that DfT undertake further studies on the likelihood <strong>and</strong> consequences of a relatively rapid step-change in passenger volumes. Conclusions 20. We believe that improving ticketing arrangements across all modes of public transport in the UK plays a vital role in encouraging take up of public transport, particularly multi modal use—as well as making the best use of the capacity available. These are important goals <strong>and</strong> objectives if the UK is to reduce its dependency on road use <strong>and</strong> motoring.
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House of Commons Transport Committe
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Contents Report Page 1 Introduction
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4 5. Smartcards offer a range of ne
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6 Integrated bus ticketing 10. Thro
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8 Long distance coach services are
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10 strategy, including those in the
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12 long-distance rail passengers ma
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14 services have not been put in pl
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16 Oyster on rail services in Londo
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18 4 Revenue protection and
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20 Staff safety 61. Transport staff
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22 66. An integrated ticketing syst
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24 Transport should commission an e
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26 concession authorities that attr
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28 operators and a
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30 List of recommendations Integrat
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32 Concessionary t
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34 Formal Minutes Clive Efford Mrs
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36 List of written evidence 1 Dr Ro
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38 List of Reports from the Committ
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Oral evidence Taken before the Tran
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14 November 2007 Mr Chris Austin, M
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Transport Committee: Evidence Ev 11
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14 November 2007 Mr Keith Halstead
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definition of severe disability <st
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about how the data on the smartcard
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things around it. We have got over
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which comes out of the usage of the
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the impact of their behaviour on ot
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5 December 2007 Mr Manuel Cortes, M
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5 December 2007 Mr Manuel Cortes, M
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Mr Harris: I am sorry, I am not goi
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12 December 2007 Mr Tom Harris MP <
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Q464 Chairman: Is Transport Direct
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3.2 Conclusion—Smartcard St<stron
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Concessionary Fare
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Question 68 Timings of Oyster <stro
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