The new discount model from the A-Welle fare association

The A-Welle fare association in Aargau, Switzerland and FAIRTIQ joined forces to develop and market-test new digital discount models aimed at attracting occasional and frequent passengers for whom buying a season ticket does not make financial sense. A-Welle’s key aim was to offer attractively priced digital solutions that would better respond to changing customer needs and drive ridership. The results of market tests demonstrate that discounts based on the customer's total monthly spend lead to more regular public transport use and generate additional revenue for the fare association. Based on these findings, A-Welle decided to introduce the 'premyo' discount model on the FAIRTIQ app as of 1 December 2024. The following case study documents the solution, challenges encountered, and the positive results.

The A-Welle fare association coordinates a wide range of transport services including buses and trains across the canton of Aargau and in parts of neighbouring Solothurn. Since 2017, anyone travelling on the A-Welle fare network has been able to purchase their tickets via the check-in/check-out FAIRTIQ app. Four years later, A-Welle became the first fare association in Switzerland to introduce a monthly cap, which it hoped would be more compatible with shifting mobility patterns and appeal to frequent users who no longer want to commit to a season pass. The purpose of the market test was to identify pricing models that responded most effectively to evolving needs, particularly customers who feel that a season pass no longer offers compelling value for money.

💡 Monthly cap: A-Welle's existing fare product for frequent users

When passengers travelling on the A-Welle network spend above a set amount during a given calendar month, all fares beyond this threshold are credited to their FAIRTIQ account, which incentivises public transport use. Following the successful market test of the fare cap, A-Welle decided in 2023 to extend the project indefinitely.

Increased customer loyalty aufbauen

Attractive discount rates combined with the FAIRTIQ app's ease of use incentivise recurrent public transport use and boost passenger loyalty.

Optimised fare products thanks to behavioural analysis

Digitalised discount schemes offer transport providers deep and valuable insights into passenger behaviour and enable them to continuously optimise their fare models.

More journeys and more sales revenue

Fare discounts motivate customers to use bus and train services more frequently, which in turn leads to increased revenue for the transport providers.

Enhanced appeal of regional passenger transport services

Fare discounts make public transport a more attractive proposition for occasional and frequent users, facilitate access to these services and improve the passenger experience.

Flexible pricing design

Unlike traditional, zone-based multi-journey tickets, the new discount model is based on the user's total spend which makes it easier for providers to design fare products that are more flexible and tailored to the needs of specific user groups.

🔎 'Premyo' – a brief description

From 1 December 2024, passengers on A-Welle services who use the FAIRTIQ app will enjoy a discount of up to 25% on their fares. The discount rate varies depending on how often they travel on public transport over a given calendar month. The more bus and train journeys they make, the higher the discount they receive. This new solution offers passengers greater flexibility without the long-term financial commitment that a season ticket entails, making it an interesting option for users for whom a season ticket represents poor value for money.

🎯 A further aim of the new discount model

In addition to bolstering customer loyalty and making public transport a more appealing option for frequent users who do not have a season ticket and occasional customers, A-Welle sees 'premyo' as a means of driving the shift away from conventional paper tickets towards simple, user-friendly and resource-saving digital ticketing solutions. This new digital fare product also cuts the costs associated with the procurement and maintenance of expensive infrastructure like ticket validators, ticket machines and on-board bus ticket sales.

Experience with experimental fare models

FAIRTIQ has extensive experience when it comes to developing and trialling new fare models. It has the expertise needed to conduct small-scale pricing experiments and analyse their results with a high degree of precision thanks to randomised distribution across test and control groups.

Direct communication with users

FAIRTIQ serves as a channel of communication between A-Welle and its customers. As a result, the operator is able to respond quickly to feedback and use automatic push notifications to nudge its customers directly on their mobile to increase their public transport use.

Revenue optimisation

Innovative discount solutions can increase revenue and improve profitability.

Valuable data analysis for future models

Cooperation opens up the possibility of analysing the data collected during the project and using these insights at a later date to develop new fare models.