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

March 2007
1. Summary
Transport Committee: Evidence Ev 159
ticketing not only across types of transport but also over areas <strong>and</strong> regions. Schemes using ITSOcompliant
smartcard technology ensure complete interoperability <strong>and</strong> eYcient management of the
movement of people <strong>and</strong>, if applied nationally, would ensure a “seamless journey” for the traveller
regardless of mode or LTA boundary.
Memor<strong>and</strong>um from Transport for London (TPT 29)
1.1 The Oyster smartcard has provided substantial benefits to passengers on all TfL modes since it was
introduced in 2002. Passengers can move faster around the city. TfL’s losses from fraud have been reduced.
And it has been the foundation for a transformation in TfL’s relationship with its regular customers. But it
is important to recognise that Oyster may no longer represent a state-of-the-art smartcard system, as
developments in related industries open up attractive alternative models.
1.2 TfL actively tackles fare evasion through the provision of dedicated revenue protection teams <strong>and</strong>
believes that these teams generate net revenue. But it is still not satisfied with the rigour applied to revenue
protection especially on buses. Further steps can be taken to make the law in this area more relevant to
modern technologies.
2. Introduction
2.1 TfL welcomes the opportunity to respond to the Committee’s inquiry into <strong>Ticketing</strong> on Public
Transport. With four year’s worth of experience in running the Oyster smartcard system alongside its older
paper ticket system, TfL feels it has useful perspectives to oVer on the subjects of smartcard technologies
<strong>and</strong> revenue protection. TfL has also contributed to a separate submission by the Mayor of London that
focuses on integrated ticketing <strong>and</strong> concessionary travel.
2.2 Overall, TfL considers that the introduction of the Oyster smartcard has been unambiguously
positive. It has improved the customer experience in many ways. Certainly customers can proceed through
TfL stations <strong>and</strong> board TfL buses much more quickly than used to be the case, <strong>and</strong> they are unanimously
positive about this. But that is only the start. Customers now have a wider choice of travel products including
the Oyster Pay As You Go stored value product which was impossible to deliver using paper tickets. They
can also register their possession of a given Oyster card with TfL <strong>and</strong> thereby access an improved range of
customer services <strong>and</strong> benefits. There is no interest within TfL in returning to paper tickets.
2.3 The Transport Policing & Enforcement Directorate’s (TPED’s) Bus Enforcement section is
responsible for operational <strong>and</strong> procedural bus enforcement, including managing TfL’s approximately 295
Revenue Protection Inspectors 29 (RPIs), ticketing <strong>and</strong> policy input on revenue, <strong>and</strong> investigation <strong>and</strong>
prosecution delivery for Surface Transport. Public transport providers have a duty to ensure that public <strong>and</strong>
private monies are protected <strong>and</strong> paying customers are supported through eVective revenue protection <strong>and</strong>
prosecution activities.
2.4 The pattern <strong>and</strong> methods of fare evasion have changed to adapt to new technology <strong>and</strong> ticketing
requirements, particularly in the last two years. Fare evasion has also increased on the bus network over
the same period. This has been driven by operational <strong>and</strong> ticketing changes which reinforce the need for
appropriate legislation <strong>and</strong> eVective sanctions delivery. Fare evaders are often involved in other forms of
crime. EVective fare evasion detection provides judicial access to these oVenders.
3. The Use of Smartcard Technologies
3.1 The Oyster contactless smartcard was launched by TfL in 2002 <strong>and</strong> since then has grown to be the
largest transport smartcard scheme in the United Kingdom. To date, more than 11 million cards have been
issued to TfL customers, <strong>and</strong> they use their cards for almost 7 million journeys on TfL <strong>and</strong> train operating
company services every day. 82% of journeys on TfL services are now made using Oyster. But such a scheme
does not come cheap: TfL pays its PFI contractor substantial service charges to provide <strong>and</strong> operate the
Oyster system. There are broadly three lessons from London’s experience with Oyster.
3.2 First, Oyster has allowed passengers to move significantly faster around the city by reducing queues
both for ticket purchase at ticket oYces <strong>and</strong> retail outlets <strong>and</strong> for London Underground gate-lines <strong>and</strong> bus
entrances (maximum throughput for gates was increased from 15 passengers per minute to 40 on the
29 The main aims of RPIs are to:
— Detect <strong>and</strong> minimise fare evasion on the London bus network.
— Develop <strong>and</strong> eVectively use technology to ensure eVective resource targeting <strong>and</strong> data analysis.
— Provide a visible, uniformed presence to deter fare evasion <strong>and</strong> other criminal behaviour.
— Provide staV <strong>and</strong> passenger safety <strong>and</strong> security reassurance <strong>and</strong> to assist <strong>and</strong> guide as needed.