Urban public transport

Public transport industry is facing challenging times. Fuel costs are rising meanwhile subsidies are decreasing and in addition, the economic crisis and new mobility trends are putting more pressure into the system with higher demand. Raising revenues and reducing cost is a mantra for all public transport operators: it is now time to do more with less but with more customers. Providers are changing trying to go beyond their local borders (merging in major groups), improving travel experience (real time and mobile communications) and diversifying revenues sources (advertising and consultancy). In most developed country we are observing a strong change in urban mobility trends that reflect a less intensive use of cars. For the first time we are recording decreasing number in license holding among younger generation. Furthermore it was noticed that driving distance reached a peak at the beginning of 2000 and after a period of stability is now declining. This put a stronger pressure on PT operators that has to meet customer expectation with shrunken budget. Due to new financial cuts, many companies should also work to maximise revenues. Some are just starting to establish interactions with customers using mobile technologies. This could allow collecting data and conducting surveys at lower costs, in order to get a better insight into the demand and provides new services according to specific travel needs of the citizens. In addition using smart technologies, as e-ticketing, could lead in the future to have the opportunity to set dynamical fare scheme (peak and off-peak tickets). Analysis of travel applications based on open data clearly shows that the added value created for third parties, helps to enhance the travel experience (e-ticketing, travel planner, on time app) and to shape mobility (promotions, personalized fare). Lowering of public subsidies is forcing operators to rethink their business model, seeking new revenues streams. Diversification of economic sources could help avoiding fares increase and service cuts. Some operators are trying to expand into the consultancy sector selling their expertise in traffic systems or in project managing. Others are increasingly considering advertisement solutions in stations or in the rolling stock. Ultimately, transport companies are moving from simply local operator towards a more complex, bigger industry providing additional services and retail investment opportunities. The chapter shows that the future outlook of urban public transport will be influenced by three main pillars: budget pressure (decreasing budgets, cost control, new business model), mobility pattern changes (increasing in public transport demand) and new technologies (social media, smart apps).

VANNACCI Lorenzo;  NAVAJAS CAWOOD Elena; 

2016-01-01

Routledge

JRC91970

978-1-138-78282-2,