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

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

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Ev 124 Transport Committee: Evidence 1.4 The term “integrated ticketing” needs to be commonly understood by ong>andong> from a passenger’s perspective. TranSys’ experience in London tells us that passengers want: (a) Convenience—one ticket covers all modes of travel—easily purchased without queuing from a wide range of retail ong>andong> other channels that suit the passengers’ preference. (b) Value—the ticketing system will succeed if it provides best value, i.e. discounts, capping or loyalty benefits without the passenger having to be an expert in ticketing ong>andong> fare rules. These benefits are most eVectively delivered by a smartcard system with “pay-as-you-go” capability that “caps” a passenger’s fare to be equivalent to a best value fare. (c) Security—the ticketing system ong>andong> the supporting infrastructure must be trusted by the passenger, particularly so where the passengers “stored value money” of a “pay-as-you-go” capability is concerned. (d) Non-intrusive—anonymous if the passenger so chooses. (e) Equipment that works—reliable ong>andong> user-friendly. 1.5 The term “integrated ticketing” also needs to be understood from a policy maker’s perspective. Issues to be addressed include: what is the scope in terms of the modes of travel? Which operators are to be included from day one ong>andong> what might be added at a later date? Who will have control during implementation to ensure that resolution of emerging issues ong>andong> who will manage change over time? 1.6 At present, data on National Rail travel usage is derived from manually conducted twice annual passenger count surveys which are used basically for revenue allocation. These are inaccurate, ineYcient, partial ong>andong> expensive. An integrated smartcard ticketing system would transform this for policy makers ong>andong> oVer real benefits: — real ong>andong> accurate data on usage ong>andong> time of usage, assisting with demong>andong> management planning ong>andong> the planning of service frequency; ong>andong> — data on origin ong>andong> destination of journeys, which can be very useful in optimising capacity planning ong>andong> thereby reducing energy ong>andong> carbon emissions. Integration in London 1.7 Within London, ticketing has become highly integrated (a single ticket for Underground, bus, DLR, ong>andong> tram services). The present gap in London is for those passengers travelling to London on national rail tickets, especially from south London ong>andong> from the wider South East region. Although the system is not fully integrated, the introduction of national rail zoned fares within London ong>andong> the outline agreement in January 2007 of TOCs operating in London to accept Oyster PAYG will integrate the London transport system even further. It has not yet been determined by transport operators ong>andong> transport specifiers (PTEs, Department for Transport) how far this ticketing integration will extend beyond Greater London Authority (GLA) boundaries. The Department for Transport is due to approve shortly the extent to which the Mayor of London will be granted powers to specify rail services ong>andong> potentially fares in areas beyond the Greater London boundary. 1.8 The transport pressures in London are unique. About 70 per cent of all rail journeys in Britain either start or finish in London. The PRESTIGE contract was designed to ensure that London has a ticketing system that enables it to cope with heavy peak traYc loads. The Oyster smartcard system is an example of an integrated ticketing system that can hong>andong>le thousong>andong>s of passengers every minute ong>andong> millions of passengers each day, ong>andong> which allows Londoners to travel around the Capital on diVerent modes with greater ease. 1.9 Transport for London’s T2025 document anticipates that the predicted employment ong>andong> population growth in London will result in a 30% increase in public transport passenger km travelled in the morning peak by 2025. 25 The speed of the Oyster smartcard allows 40 people a minute to pass through a ticket barrier, which is critical at times of peak passenger flow through busy stations. 1.10 An integrated ticketing system would need to recognise the particular conditions in London if it was to be compatible with London’s system ong>andong> not cause delays ong>andong> blockages at mainline terminals ong>andong> major interchanges throughout London. It must be able to safely, speedily ong>andong> faultlessly hong>andong>le thousong>andong>s of passengers arriving at a station within a short time (eg due to simultaneous peak hour train arrivals on several platforms, which may unload several thousong>andong> people in a couple of minutes). 1.11 The further roll-out of Oyster Pay-As-You-Go (PAYG) to national rail services in London raises the proposition of how far integration should extend out of London to a commuter’s journey starting point—for example, onto local bus services in the Home Counties. This is a matter for transport policy ong>andong> delivery authorities to consider. 25 Transport 2025: Transport Challenges for a growing city, Transport for London, June 2006.

Integration Nationally Transport Committee: Evidence Ev 125 1.12 Nationally, there are significant structural, legal ong>andong> commercial barriers to ticketing integration. 1.13 Barriers on the rail network include: (a) The fact that the TOCs carry the revenue risk within the franchise agreement ong>andong> therefore any change to ticketing or fares policy (whosoever makes it) is seen as a potential risk to their business. (b) An integrated ticketing system requires a level of cooperation ong>andong> sharing that is culturally diYcult for a competition-based industry focused on short to medium term profit maximising, particularly if it requires any significant capital investment with a longer payback period than the duration of the franchise. (c) As a consequence of the value of the franchise agreements they are caught by the European mergers ong>andong> competition rules. Since the TOC owning groups are mostly also major UK bus operators, they can be reluctant to integrate fully national rail ong>andong> local bus services in order to avoid the possibility of being regarded as having exploited a dominant position. (d) The diVering characteristics of each TOC (traditionally characterised as London ong>andong> South East (LSE), Intercity, ong>andong> Regional) is a barrier to integration. There is a strong ong>andong> positive business case for those franchisees for LSE TOCs, where there is heavy usage ong>andong> where overcrowding is an issue. But “pay-as-you-go” from a stored value on the card has little benefit from a passenger’s perspective for Intercity services where the average fare value is over £20. Passengers will not want to tie up cash to pay Intercity fare levels from a stored value. Conversely, in regional TOCs the fare paid by the passenger is only c25% of the real cost of providing the service (eg Arriva Trains Wales or Northern franchise) ong>andong> in these cases the value of an integrated system is a function of the importance of an integrated system with local bus services. (e) Who is, or will be, the customer with the vision to drive it forward? 1.14 On the bus network, the barriers to integration include: (a) the de-regulation of bus services outside of London ong>andong> the multiplicity of small operators mean it is diYcult to deliver a national integrated system unless it is mong>andong>ated at the outset as part of an operators’ licence—this may be possible through the intervention of PTEs; ong>andong> (b) Nationally integrated ticketing will be low on the agenda for the multitude of small local bus operators because they will be reluctant to pay for the infrastructure cost associated with a National system. 2. Does the Government have an adequate strategy for developing the integration of ticketing systems? 2.1 No, TranSys does not believe that the current strategies being pursued will result in a National integrated ticketing system in the short to mid term that truly benefit both regular mass transit passengers ong>andong> operators. 2.2 The current strategies are: — to mong>andong>ate ITSO compliant cards on national rail in franchise agreements ong>andong> require bidders to submit bids for smartcard schemes; — TranSys is not aware of any policy on buses other than to mong>andong>ate ITSO cards; ong>andong> — integration of London into a national scheme will be by requiring TfL to accept ITSO cards. 2.3 TranSys believes this will not deliver an integrated ticketing system because: — A national integrated ticketing system is an achievable but very complex system—the ticket medium (smartcard) or ITSO specification used on the card is only a small element in that system. Other key features of a successful integrated system are base data, ticket logic ong>andong> fares tables, revenue allocation protocols, inter-device ong>andong> device-to-communications processing communications protocols, security protocols, comprehensive business rules ong>andong> operational rules, data outputs ong>andong> formats, system ong>andong> equipment redundancy, disaster recovery arrangements, maintenance ong>andong> service levels ong>andong> device availability. — The ITSO specification is “permissive” (allowing diVering solutions ong>andong> options) rather than “definitive” (providing a measurable ong>andong> defined envelope of parameters or performance). It is therefore capable of being met by a number of diVerent interpretations. — By allowing multiple operators to develop smartcard solutions within franchises there is the danger that they develop ITSO compliant solutions that meet their franchise obligation but do not consider a national perspective as part of the delivery ong>andong> are therefore unlikely to be an integrated solution. The worst outcome would be a passenger taking a journey from (for example) Brighton to Birmingham that requires 3 separate smartcards. — Following the franchise replacement route will mean that a totally integrated ticketing system will not be available until late in the next decade.

Ev 124 <strong>Transport</strong> Committee: Evidence<br />

1.4 The term “integrated ticketing” needs to be comm<strong>on</strong>ly understood by <str<strong>on</strong>g>and</str<strong>on</strong>g> from a passenger’s<br />

perspective. TranSys’ experience in L<strong>on</strong>d<strong>on</strong> tells us that passengers want:<br />

(a) C<strong>on</strong>venience—<strong>on</strong>e ticket covers all modes of travel—easily purchased without queuing from a<br />

wide range of retail <str<strong>on</strong>g>and</str<strong>on</strong>g> other channels that suit the passengers’ preference.<br />

(b) Value—the ticketing system will succeed if it provides best value, i.e. discounts, capping or loyalty<br />

benefits without the passenger having to be an expert in ticketing <str<strong>on</strong>g>and</str<strong>on</strong>g> fare rules. These benefits are<br />

most eVectively delivered by a smartcard system with “pay-as-you-go” capability that “caps” a<br />

passenger’s fare to be equivalent to a best value fare.<br />

(c) Security—the ticketing system <str<strong>on</strong>g>and</str<strong>on</strong>g> the supporting infrastructure must be trusted by the passenger,<br />

particularly so where the passengers “stored value m<strong>on</strong>ey” of a “pay-as-you-go” capability is<br />

c<strong>on</strong>cerned.<br />

(d) N<strong>on</strong>-intrusive—an<strong>on</strong>ymous if the passenger so chooses.<br />

(e) Equipment that works—reliable <str<strong>on</strong>g>and</str<strong>on</strong>g> user-friendly.<br />

1.5 The term “integrated ticketing” also needs to be understood from a policy maker’s perspective.<br />

Issues to be addressed include: what is the scope in terms of the modes of travel? Which operators are to be<br />

included from day <strong>on</strong>e <str<strong>on</strong>g>and</str<strong>on</strong>g> what might be added at a later date? Who will have c<strong>on</strong>trol during<br />

implementati<strong>on</strong> to ensure that resoluti<strong>on</strong> of emerging issues <str<strong>on</strong>g>and</str<strong>on</strong>g> who will manage change over time?<br />

1.6 At present, data <strong>on</strong> Nati<strong>on</strong>al Rail travel usage is derived from manually c<strong>on</strong>ducted twice annual<br />

passenger count surveys which are used basically for revenue allocati<strong>on</strong>. These are inaccurate, ineYcient,<br />

partial <str<strong>on</strong>g>and</str<strong>on</strong>g> expensive. An integrated smartcard ticketing system would transform this for policy makers <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

oVer real benefits:<br />

— real <str<strong>on</strong>g>and</str<strong>on</strong>g> accurate data <strong>on</strong> usage <str<strong>on</strong>g>and</str<strong>on</strong>g> time of usage, assisting with dem<str<strong>on</strong>g>and</str<strong>on</strong>g> management planning<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> the planning of service frequency; <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

— data <strong>on</strong> origin <str<strong>on</strong>g>and</str<strong>on</strong>g> destinati<strong>on</strong> of journeys, which can be very useful in optimising capacity<br />

planning <str<strong>on</strong>g>and</str<strong>on</strong>g> thereby reducing energy <str<strong>on</strong>g>and</str<strong>on</strong>g> carb<strong>on</strong> emissi<strong>on</strong>s.<br />

Integrati<strong>on</strong> in L<strong>on</strong>d<strong>on</strong><br />

1.7 Within L<strong>on</strong>d<strong>on</strong>, ticketing has become highly integrated (a single ticket for Underground, bus, DLR,<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> tram services). The present gap in L<strong>on</strong>d<strong>on</strong> is for those passengers travelling to L<strong>on</strong>d<strong>on</strong> <strong>on</strong> nati<strong>on</strong>al rail<br />

tickets, especially from south L<strong>on</strong>d<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> from the wider South East regi<strong>on</strong>. Although the system is not<br />

fully integrated, the introducti<strong>on</strong> of nati<strong>on</strong>al rail z<strong>on</strong>ed fares within L<strong>on</strong>d<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> the outline agreement in<br />

January 2007 of TOCs operating in L<strong>on</strong>d<strong>on</strong> to accept Oyster PAYG will integrate the L<strong>on</strong>d<strong>on</strong> transport<br />

system even further. It has not yet been determined by transport operators <str<strong>on</strong>g>and</str<strong>on</strong>g> transport specifiers (PTEs,<br />

Department for <strong>Transport</strong>) how far this ticketing integrati<strong>on</strong> will extend bey<strong>on</strong>d Greater L<strong>on</strong>d<strong>on</strong> Authority<br />

(GLA) boundaries. The Department for <strong>Transport</strong> is due to approve shortly the extent to which the Mayor<br />

of L<strong>on</strong>d<strong>on</strong> will be granted powers to specify rail services <str<strong>on</strong>g>and</str<strong>on</strong>g> potentially fares in areas bey<strong>on</strong>d the Greater<br />

L<strong>on</strong>d<strong>on</strong> boundary.<br />

1.8 The transport pressures in L<strong>on</strong>d<strong>on</strong> are unique. About 70 per cent of all rail journeys in Britain either<br />

start or finish in L<strong>on</strong>d<strong>on</strong>. The PRESTIGE c<strong>on</strong>tract was designed to ensure that L<strong>on</strong>d<strong>on</strong> has a ticketing<br />

system that enables it to cope with heavy peak traYc loads. The Oyster smartcard system is an example of<br />

an integrated ticketing system that can h<str<strong>on</strong>g>and</str<strong>on</strong>g>le thous<str<strong>on</strong>g>and</str<strong>on</strong>g>s of passengers every minute <str<strong>on</strong>g>and</str<strong>on</strong>g> milli<strong>on</strong>s of<br />

passengers each day, <str<strong>on</strong>g>and</str<strong>on</strong>g> which allows L<strong>on</strong>d<strong>on</strong>ers to travel around the Capital <strong>on</strong> diVerent modes with<br />

greater ease.<br />

1.9 <strong>Transport</strong> for L<strong>on</strong>d<strong>on</strong>’s T2025 document anticipates that the predicted employment <str<strong>on</strong>g>and</str<strong>on</strong>g> populati<strong>on</strong><br />

growth in L<strong>on</strong>d<strong>on</strong> will result in a 30% increase in public transport passenger km travelled in the morning<br />

peak by 2025. 25 The speed of the Oyster smartcard allows 40 people a minute to pass through a ticket barrier,<br />

which is critical at times of peak passenger flow through busy stati<strong>on</strong>s.<br />

1.10 An integrated ticketing system would need to recognise the particular c<strong>on</strong>diti<strong>on</strong>s in L<strong>on</strong>d<strong>on</strong> if it was<br />

to be compatible with L<strong>on</strong>d<strong>on</strong>’s system <str<strong>on</strong>g>and</str<strong>on</strong>g> not cause delays <str<strong>on</strong>g>and</str<strong>on</strong>g> blockages at mainline terminals <str<strong>on</strong>g>and</str<strong>on</strong>g> major<br />

interchanges throughout L<strong>on</strong>d<strong>on</strong>. It must be able to safely, speedily <str<strong>on</strong>g>and</str<strong>on</strong>g> faultlessly h<str<strong>on</strong>g>and</str<strong>on</strong>g>le thous<str<strong>on</strong>g>and</str<strong>on</strong>g>s of<br />

passengers arriving at a stati<strong>on</strong> within a short time (eg due to simultaneous peak hour train arrivals <strong>on</strong><br />

several platforms, which may unload several thous<str<strong>on</strong>g>and</str<strong>on</strong>g> people in a couple of minutes).<br />

1.11 The further roll-out of Oyster Pay-As-You-Go (PAYG) to nati<strong>on</strong>al rail services in L<strong>on</strong>d<strong>on</strong> raises<br />

the propositi<strong>on</strong> of how far integrati<strong>on</strong> should extend out of L<strong>on</strong>d<strong>on</strong> to a commuter’s journey starting<br />

point—for example, <strong>on</strong>to local bus services in the Home Counties. This is a matter for transport policy <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

delivery authorities to c<strong>on</strong>sider.<br />

25 <strong>Transport</strong> 2025: <strong>Transport</strong> Challenges for a growing city, <strong>Transport</strong> for L<strong>on</strong>d<strong>on</strong>, June 2006.

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