Ticketing and fare strategies

Pierre Bourbonnière

Consultant, Transportation Marketing expert

Canada

Forms of payment in North America

Traditional tickets

Token

Mag stripes

Smart cards – Conventional and pre-paid

Mobile ticketing NFC

Mobile ticketing – Bar codes and visual

Honor system

Trend : Leapfrogging

RIDERSHIP IS BACK !!! RECORD RESULTS

Public transit by conviction!Public transit by conviction!

Public transit for convenience and no stressPublic transit for convenience and no stress

BMW..Bus, Métro, Walking..Hate cars!BMW..Bus, Métro, Walking..Hate cars!

I have no choice but to use public transit I have no choice but to use public transit

Public transit since it is more affordable…

Public transit since it is more affordable… Prefer my car….but

occasionnally, at festivals or hockey….

Prefer my car….but occasionnally, at festivals or hockey….

Occasionnal The constraintIn transit

Active urban

The practicalThe urban Montrealer

Marketing objectives

Business models – Revenue vs Ridership

Acquisition vs retention

Stopping attrition

Increase utilization specially during shoulder and off-peak

Improve customer experience

Buy-up : Single tickets to monthly passes to yearly passes

Diversified payment and fare options

Customer Relationship Management

Customer Journey

Fare Strategies Personalizing the fare structure to customer segments

The occasional customer Return trip (2 tickets) Unlimitted evening Unlimitted week-end

The practical needing more flexibility 10 passages

The In-transit - Students 4 Consecutive months

Tourists with short journeys 1 jour-24h 3 jours

Families and children Groupes Family fares

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Customer Relationship Management

Fares best suited for events

Major events Ensures fluidity with large crowds during events Allows for visual validation without loosing revenue Makes it easy for Occasionnal users

Fare solutions for conventions and private events Special Fare grid allowing for volume discounts for convention organizers Encourages longer stays and promotes tourism Fare allowing unlimitted access to Airport service and 24 hours use

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The OPUS Card :One card with multiple possibilities

Before OPUS• Monthly pass (CAM)

• Weekly pass

• 1 ticket

• 6 tickets (strip)

• Touris Card

After OPUS• 10 tickets (strip)

• 4 months pass (reduced)

• Group ticket

• Day pass 24h

• 3 day pass

• 2 tickets

• Unlimited evening pass

Fare structure evolution

New occasional pass

Targeted products

Transportation Cocktail

• Complementarity to PT to delay decision to purchase a car or second car• Partnership with Communauto, Bixi and others

CAMPUS

• Partnership with Université de Montréal and FAÉCUM• Universal pricing and universal contribution

Sorties en famille (Family pack)• Up to 5 children can travel with one adult at no additional cost• Partners such as La Ronde and Museums offer entry discount

Subscription based programs generate loyalty

Yearly subscription for individuals

Employer programme

No more line-up at the beginning of the month !• Monthly passes are renewed automatically• Payments made via bank debit and credit cards

RETENTION, RETENTION, RETENTION !

1. IMPROVE THE CUSTOMER EXPERIENCE

2. PAMPER / RECOGNIZE / REWARD / LEVERAGE PARTNERS

3. INCREASE THE FREQUENCY OF UTILISATION + OFF-PEAK

4. MIGRATION FROM INDIVIDUAL TICKETS TO MONTHLY AND YEARLY SUBSCRIPTIONS.

5. INNOVATE AND CREATE (DEFY TRADIONNAL PROGRAMS, DEVELOP A NEW LOYALTY MODEL WITH A FOCUS ON INSTANT GRATIFICATION, ENSURING RELEVANCY WITH URBAN MOBILITY)

6. UNTAP THE POTENTIAL OF THE

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THE BIG IDEA !

Launch a unique reward & recognition program that allows our customers to

receive geolocalized and in real time, personalized, relevant, exclusive

information, offers and promotions, based on their profile, wants, usage

habits and location, through a mobile application.

THE RIGHT PRODUCT, AT THE RIGHT TIME, AT THE RIGHT PLACE FOR THE

RIGHT CUSTOMER

MY PERSONNAL OFFERS

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Elsewhere in the world… Simplification of fare models

Reduction of fare zones – Ile de France went from 8 to 5 zones

Towards a Navigo all Zone proposed in France – with subsidies from suburbs

Off-peak fares « early bird » fares for bus network – Australie

Free before 7h45 am – Singapour

Fare differentiation – evening and week-ends – Vancouver

No zones on week-ends – Ile-de-France

Ancre the habit of using Transit with certain groups U-Pass type fares for students – Germany, USA, Canada

Susbsidied fares b y employeursfor workers – Seattle

Free transit for one week when moving - Allemagne

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Elsewhere in the world… Ticketing trends

Electronic wallet (tap-in/ tap-out)

Moble ticketing validation NFC – Bar Code – Toronto – Boston, Portland, San Diego

Web ticketing – Montreal - Toronto

Smart card payment diversification

Integrate all modes of transportattion

Car sharing , Bicycling sharing, etc. Germany - Canada

PT, Car sharing – Zurich

Some cities integrate parking – Hong Kong

In Europe and Asia, some cities include other usage of smart card

Movie theatres, phone, shopping

Improving the customer experience and being efficient while using Public transit

Application allowing to borrow e-books while on the bus – Transdev

Grocery shopping while waiting for the subway – South Corea

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Thank you !