Restrictions related to COVID-19 have deeply impacted public transport demand patterns and agencies can no longer rely on historical data. Decision-makers are keen to drive ridership and revenue, but there is often scant data to fully support fare and service changes.
As work patterns shift, monthly and yearly pass sales are falling all over the world, especially where the ticket-to-pass multiplier is high. Passes must be replaced with other solutions.
The reason why so many agencies retain a fare structure designed decades ago lies in the difficulty in making the case for change without good data, particularly on potential financial shortfalls of a new fare structure. Decision-makers will ask: how much more ridership and revenue will this create? Who will be impacted and how?
In most markets, FAIRTIQ is generally set up to scour the best available deal (caps, promotions etc) at the end of the day, but can be set to calculate the owed amount weekly or monthly.
Crediting - or cashback - is a relatively new concept in public transport, enabled by account-based ticketing. Customers pay the regular price for all their trips. Over a certain amount, they receive a credit usable only on public transport over the next month. Bonuses can also be offered based on consecutive days of use. Which agency has not heard “why can’t your fare system be more like my coffee app?” Now it can be.
Agencies around the world have shown interest in new types of fare such as fare by distance, or “beeline” fare structures based on experience in Japan, Australia, the Netherlands and elsewhere. However, the data is often missing to allow decision-makers to make the important decision to change the fare structure. The pandemic will make it even more difficult to use historical data to establish reliable forecasts, let alone with a new fare structure.
If recent data exists, FAIRTIQ can simulate the impact of various fare scenarios. Because nothing replaces actual customer input, FAIRTIQ allows agencies to test new fare structures such as zones and fare by distance with closed user groups (even concurrently) to collect the data needed to make a final policy decision. The result is actual customer input at a minimal cost.
Promotions can drive new ridership and revenue but the risk always exists that a promotion does not generate enough new ridership to make up for its cost. FAIRTIQ allows to test promotions with target groups and get the data needed to make quick decisions. Promotions with a positive ROI can be made permanent.
FAIRTIQ allows employers, universities, tourist and shopping destinations to target special pricing and promotions to specific groups, at specific locations and times. Employers can achieve significant savings compared to purchasing passes, popular destinations no longer have to worry about parking capacity. Public transport agencies benefit from a new source of revenue and ridership.
