thns – shanghai – 10 -11 nov. 2009 1 marketing as a key point of public transport development...
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THNS – Shanghai – 10 -11 Nov. 2009
1
Marketing as a key point of public transport development
Seconde conférence Franco-Chinoise sur les systèmes de transport urbains durables
Shanghaï, 10-11 novembre 2009
Christian Coddet, Vice-President
Christian Proust, President
Marc Rovigo, Director
Transports à Haut Niveau de Service pour des villes à faible émission de carbone
THNS – Shanghai – 10 -11 Nov. 2009
2Marketing as a key point of public transport
development
1- Introduction
2- Analysis of the situation
3- Political decisions
4- Actions
5- Results
6- Conclusion and perspectives
Content
Christian Coddet
THNS – Shanghai – 10 -11 Nov. 2009
3
Where are we ?
Introduction
France
Germany
Switzerland
Belfort
THNS – Shanghai – 10 -11 Nov. 2009
4 Who are we ?
A few numbers:
- 56 000 families
- 150 000 inhabitants
- 650 km2
Introduction
A public body in charge of all questions of public transportation in the region of « Territoire de Belfort » Belfort
THNS – Shanghai – 10 -11 Nov. 2009
5Our missions
Introduction
To developp, to organize, to finance public transportation
To provide:- Transportation for pupils
- Tranportation in the urban area (about 90 000 inhabitants)
- Transportation in the suburban areas (about 30 000 inhab.)
- Transportation in the remote areas (about 30 000 inhab.)
- Transportation of disabled persons
THNS – Shanghai – 10 -11 Nov. 2009
6
Analysis of
the situation
Observation of the new team in charge of the SMTC in 2006 :
A dramatic decrease (2 millions) in the number of passengers during the last 10 years, i.e. – 30% !
Less passengers
Lower revenueHigher
cost
Degraded service
?
The system was entered in a spiral of regression
THNS – Shanghai – 10 -11 Nov. 2009
7
Voiture particulière
68,2%
Analysis of
the situation
Others
0,9%
2 wheels
1,7%Public transport
5,6%
Walk23,7%
Cars
68,1%
An overwhelming role of private cars for daily travels
THNS – Shanghai – 10 -11 Nov. 2009
8Marketing expenses were extremely low
versus general commercial practices
Analysis of
the situation
2006 budget
7%
31%
49%
12% 1%
Subcontracting
Personnel
GeneralFuel and maintenance
Marketing: < 1%
People were considered as « users » rather than clients of the service; they desserved little attention
THNS – Shanghai – 10 -11 Nov. 2009
9Fares structure was very complex:
75 different rates !
Analysis of
the situation
Selling practices were also very counterproductive: a large number of inboard selling reduced dramatically the commercial
speed of buses
53%
13%
34%
Single ticket
Prepaid
Monthly pass
THNS – Shanghai – 10 -11 Nov. 2009
10Additional general observation
Analysis of
the situation
Public tranportation is an activity sector where production (a number of seats x km) is little or
even not valued.
Less than 10 % of the capacity is generally used !
The service is predominantly used by
- People dispensed from paying fares (social cases)
- School pupils
- People having no other solution (no car)
THNS – Shanghai – 10 -11 Nov. 2009
11
• Think service first rather than infrastructure• Restore the image of public transportation
• Incite rather than constrain
To get out of the decline, strong political decisions had to be taken
NB: The concept of « public service » has also to be precised: concerning transportation, it cannot be an equal opportunity for each citizen ignoring the reality
of the local situation.
Political
decisions
THNS – Shanghai – 10 -11 Nov. 2009
Since January 2008, more than 100 new passes are created
each week.
Citizen are waiting for a service; the offer should then be a mobility contract
with easy access.Therefore, the first decision was to create a free, life lasting pass : the “Pass Optymo”.Actions
THNS – Shanghai – 10 -11 Nov. 2009
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PASS OPTYMO
Actions
- Free and simple : the bus as you wish and when you wish.
- Post payment : the client receives a monthly invoice.
- Limited payment : 0.8 €/travel with a maximum of 31 €/month full fare (from 39 rides, bus is free); there is also a reduced fare of 9 €/month for kids and social purpose (bus is free after 12 rides).
THNS – Shanghai – 10 -11 Nov. 2009
14To ease life: the post payment
Actions
Bank transfer
computercomputer
Calculation with limitation at 31 or 9 €
CashInvoice
THNS – Shanghai – 10 -11 Nov. 2009
15Public transport requires a dynamic
and positive image to be developped.
A brand name was thus created in order to promote the service.
Actions
THNS – Shanghai – 10 -11 Nov. 2009
Strong marketing actions were taken
Actions
Marketing budget was first multiplied by 4 for prospection, animation, clients rewards, partneships, …
Accordingly, the « product » was also « packaged » with a new look and reorganized (staying within the same global budget)
THNS – Shanghai – 10 -11 Nov. 2009
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To sell more, fees were reduced
2006 2009 %
Single ticket 1.10 € 0.80 € - 27%
Maximun monthly fare 56.40 € 31.00 € - 45%
Actions
Once seats-km are produced, it’s better if they are used !
Please, get in !
THNS – Shanghai – 10 -11 Nov. 2009
18 Partnership is now being developpedwith companies and administrations
Comité d’Etablissement
Actions
THNS – Shanghai – 10 -11 Nov. 2009
19and also with shops and merchants
Tickets can be prepaid and offered by shop keepers in a special « gift » packaging
Actions
THNS – Shanghai – 10 -11 Nov. 2009
20
Nombre de Pass Optymo
2141217828
2316925624
28281
13457
9219
4247
0
5 000
10 000
15 000
20 000
25 000
30 000
11/2
007
12/2
007
01/2
008
02/2
008
03/2
008
04/2
008
05/2
008
06/2
008
07/2
008
08/2
008
09/2
008
10/2
008
11/2
008
12/2
008
01/2
009
02/2
009
03/2
009
04/2
009
05/2
009
06/2
009
07/2
009
08/2
009
Mois
No
mb
re
Nbre carte attribuée
Cumul
Results
The results
Number of Pass Optymo delivered versus time
Month
Nu
mb
er
THNS – Shanghai – 10 -11 Nov. 2009
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The results voyages
5 808 825
4 886 920 4 833 253
0
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
2008 2007 2006
Results
1 million more passengers in 2008
THNS – Shanghai – 10 -11 Nov. 2009
22 For the first year (2008), the « Pass Optymo accounted for 85% of travels
Results
An average of 6500 invoices were edited each month (invoices are not emitted below 10 €)
– 2/3 were settled by bank tranfer– 1.25 % remained unpaid – The mean direct cost of an invoice was 0.14 €
- 25% were free rides for pupils
- 60 % were normal and reduced fares
THNS – Shanghai – 10 -11 Nov. 2009
23 Now a virtuous circle seems to have replaced the regression spiral
Demand: ride*km
+45%
Demand: ride*km
+45%
Cost per passenger:
-13%
Cost per passenger:
-13%
Offer: bus*km
+35%
Offer: bus*km
+35%
Conclusion
Numbers as in September 2009
THNS – Shanghai – 10 -11 Nov. 2009
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24
And what next ?
Conclusion
- One objective is to reach 16% of transportation share within 10 years (from 5.6% in 2007).
- The other is to propose a real right to public transportation on all of the territory (with of course different systems and conditions between urban, suburban and remote areas).
New marketing methods are still being developped such as:
- Ticketing by SMS (already a success !)
- Modulation of fares
- …
THNS – Shanghai – 10 -11 Nov. 2009
Our project : to open in Belfort a new route for the development of public
transportation and thus move towards a more sustainable transportation system
Conclusion
THNS – Shanghai – 10 -11 Nov. 2009
Part of the studies and technical developments were made in partnership with UTBM, the University of Technology
of Belfort-Montbéliard