Booking and Payment Systems

Summary

Driver description
Interactions with the Technology Domain
Interactions within the Social Domain
Interactions with the Economy Domain
Interactions with the Environment Domain
Impacts on Mobility and Transport

Driver description

  • “(...) all transport modes should be interlinked, as part of one integrated system. (...) The current planning and ticketing systems are not really capable of addressing this concern.” (Ref: CO_0284)
  • “This group of solutions concerns the provision of integrated pricing and/or ticketing for the individual components of long distance journeys: pre-paid tickets or cards allowing unlimited local travel; simple tariff structure for local transport services; provision of integrated tickets for local journeys; competitive pricing of integrated tickets; integrated ticketing for air and rail & within mode; pre-booked ticket for parking and public transport; integrated ticketing for long-distance rail & local public transport; inclusion of local taxi journeys in rail or air tickets; smart cards; payment via mobile telephone text messages; virtual tickets on smart phones.” (Ref: CO_0283)
  • “Smartcard technology is being implemented around the world as a substitute for cash transactions in various capacities. When applied to public transport fare collection, smartcards eliminate the need for commuters to queue for tickets and reduce the burden on transport providers to process fare transactions.” (Ref: CO_0292)
  • “As well as providing more efficient transport services to commuters, smartcard ticketing systems enable service providers and transit authorities to collect comprehensive data on the travel behaviour of commuters. With this information at hand service providers are able to cater to the needs of commuters, and allocate resources more efficiently. In spite of these benefits, experience has shown smartcard ticketing systems are prone to early implementation problems, as commuters adapt to the new technology, and it is tailored to meet the needs of unique transport systems.” (Ref: CO_0292)
  • “Smartcards are typically the size of a credit card, and contain a microchip that stores and transmits data using radio frequency identification (RFID), enabling it to communicate with a device within ten centimetres of the card without physical contact. (...)There are two categories of smartcards that can be used for public transport ticketing – a single purpose transit pass and an electronic purse (e‐purse) card with multiple applications beyond fare payment, such as small retail transactions and personal identification. Both involve a prepaid account managed by the card holder. Recent innovations in smartcard technology have concentrated on developing e‐purse applications to enhance the appeal and accessibility of smartcard ticketing to infrequent commuters or tourists” (Ref: CO_0292)
  • “The need to combat road traffic congestion and the desire to find new revenue sources for transport investments have stimulated the interest in schemes where charges for road use are introduced, such as parking fees and charges to allow vehicles to use certain roads.” (Ref: CO_0289)
  • “The various European electronic road toll systems introduced at local and national levels from the early 1990s onwards were, and generally still are, non-interoperable. They oblige drivers to affix several electronic tags inside their vehicle in order to take advantage of the various systems encountered on their itinerary.” (Ref: CO_0253)
  • “Directive 2004/52/EC and related Decision 2009/750/EC aim to achieve the interoperability of all the electronic road toll systems in the European Union in order to avoid the proliferation of incompatible systems.” (Ref: CO_0253)
  • “The directive therefore stipulates that a European Electronic Toll Service shall be set up, which covers all the road networks and tolled (infra)structures in the Union on which road-usage is declared electronically by means of a single on-board equipment, and defines the allowed technological solutions for carrying out electronic toll transactions, namely 5.8 GHz microwave and satellite positioning coupled with mobile communications.” (Ref: CO_0253)
  • “The European Electronic Toll Service (EETS) will ensure interoperability of tolling services on the entire European Union road network. EETS will enable road users to easily pay tolls throughout the whole EU with only one subscription contract with one service provider and a single on-board unit.” (Ref: CO_0253)
  • “(...) electronic fee collection is expected to be used by nearly half of all vehicles (about 46 %) by 2020, compared with 3.7 % in 2005.” (Ref: CO_0280)
  • “The traditional distinction between actors in the transport supply chain will progressively become blurred by a shift towards more integrated mobility solution providers. Future mobility integrators will act as ‘one-stop shops’, coordinating the functions of vehicle manufacturers, transport providers, service providers, technology providers and telecom operators. One European auto-maker, for example, has launched a scheme that enables holders of a special pre-paid chipcard to rent vehicles from its own range, including bicycles, scooters, cars and vans, stocked at the premises of its agency and dealership network. Subscribers can also use the card to hire accessories, or to pay for travel and accommodation via a common call centre.” (Ref: CO_0260)

Interactions within the Technology Domain

Technology development in general and innovation diffusion

  • “(...) the EETS[1] on-board equipment functionalities can be used by various other added-value telematic applications and services, such as eCall, real-time traffic and travel information. EETS will therefore contribute to further strengthening the competitiveness of the European information and communications technologies industry in this sector, already at the international forefront.” (Ref: CO_0253)
  • “Another aspect is to improve the quality of time spent waiting at security checks or for connections, for example by providing e-mail access.” (Ref: CO_0284)

[1] European Electronic Toll Service

Information systems

  • “A challenge for researchers will be to develop the data exchange protocols and standards required to ensure the modal and geographical interoperability of such far-reaching ICT applications. However, the high take-up of smart devices such as the Apple iPhone is expected to provide ample scope for independent companies to build and launch their own personalised ‘apps’ to provide such services.” (Ref: CO_0260)
  • “Smart payments also can provide valuable data on behaviour and mobility patterns of users.” (Ref: CO_0285)
  • “As well as simplifying fare payments, the smartcard’s capacity to track and record travel data has the potential to revolutionise public transport delivery. With virtual real‐time information on the demand side of the transport market, service providers can optimise the supply of services and fare prices to ensure optimum asset utilisation.” (Ref: CO_0290)

Energy efficiency

  • “If ticket vending machines are provided at bus stops or in vehicles the time for boarding diminishes and the reliability and efficiency of public transport services increases due to the fact that tickets are not bought from the driver.” (Ref: CO_0285)

Interactions with the Social Domain

Population ageing

  • “An important issue is also the availability of sales points for different user groups (e.g. elderly people or people with reduced mobility).” (Ref: CO_0285)

Urbanisation

  • “To enhance the use of public transport, cities should aim at making the ticketing system attractive and easy to understand for everyone.” (Ref: CO_0285)
  • “Public transport in rural areas suffers from low levels of patronage, and therefore has to be flexible to compete. Research highlighted the potential of using the Internet and mobile phones in the operation of both regular and on-demand services. Combining passenger and goods transport, for example by integrating the booking of passenger trips with the scheduling of goods deliveries, also looks promising.” (Ref: CO_0289)

Planning

  • “Implementing smartcard ticketing, on the other hand, presents an opportunity for governments to significantly influence the demand for public transport. With access to comprehensive travel data on the demand side, transport operators are able to develop and improve ticketing as a consumer product. This may include offering discounts on travel to and from certain areas at various times to stimulate the spread of demand across a network, maximising its revenue earning potential and encouraging increased patronage in off peak periods.” (Ref: CO_0290)

Tourist flows

  • “Continual innovation in smartcard ticketing systems will undoubtedly increase their appeal, as consumers opt for the convenience of using one card for multiple applications. One of the major beneficiaries of this technology will be international tourists who potentially could use one credit card on public transport services in different cities around the world.” (Ref: CO_0290)

Change of lifestyle and values

  • “(...) pricing technologies should be able to communicate service consumption to travellers on a regular and automated basis, as this will influence their travel behaviour.” (Ref: CO_0289)
  • “Smartcard technology demands an element of public compliance to ensure successful implementation. As such, smartcard ticketing systems are is prone to encountering early implementation problems as commuters are required to change their everyday behaviour in order for the system to succeed. For smartcard technology to work on transit modes such as bus and light rail, commuters must swipe on when boarding, and off when alighting the vehicle. This can cause problems if commuters forget to swipe off, and the potential arises for penalty fares to be issued in cases of genuine human error.” (Ref: CO_0290)

Interactions with the Economy Domain

Availability of public and private resources and investments in the transport sector

  • “When using a smart card or mobile phone, public transport passengers can save money because the best price for the trips is calculated automatically (e.g. after a certain amount of trips passengers get a price reduction).” (Ref: CO_0285)
  • “The development of integrated e‐purse payments for public transport fares and small value purchases raises opportunities for new revenue streams for retailers, the financial sector and transport service providers. Employing the payment systems expertise of financial service providers delivers cost savings to all stakeholders, enabling transport agencies to focus more resources on service provision.” (Ref: CO_0290)

Interactions with the Environment Domain

Pollution levels and emissions standards

  • “Electronic Toll Collection (ETC) systems have advantages for individual drivers as well as for the overall road system. The immediate advantage to the individual driver is that with ETC it is no longer necessary to stop at toll barriers - the toll can be paid while vehicles are still in motion. The indirect advantage is an overall decrease in delays at toll barriers for all vehicles, even those that are not using ETC devices. In this way overall pollution is reduced as a result of reducing the level of stop-and-go traffic.” (Ref: CO_0281)

Impacts on Mobility and Transport

Achieving a seamless transport system

  • “(...), ticketing and payment portals (...) will enable people to move seamlessly and efficiently from door to door. With the help of technology, entire transactions can be electronically scheduled, managed and implemented at the click of a few buttons.” (Ref: CO_0260)
  • “The introduction of electronic ticketing has various advantages for travellers and transit companies. For travellers, there is no need to queue at ticket machines and ticket offices. Further, it involves payment via direct debit and online accounting on the traveller’s personal page. For suppliers, it may reduce ticketing costs and opportunities for value added services are created. Moreover, the supplier will be able to monitor the actual traveller’s behaviour more closely. In addition, electronic ticketing yields possibilities for more flexible fares, offering, for example, opportunities to transform a zone-based fare system into a distance-based one. Another opportunity is the creation of flexible subscription rates, for example, intermediate rates between those for weekly-based and monthly-based season tickets.” (Ref: CO_5040)
  • “Smartcard ticketing systems enable commuters to carry one durable card for use on all transit modes. A single multi-purpose ticket makes using multiple transport modes much simpler and less time consuming. In turn, this facilitates the multimodal travel behaviour that is encouraged by operators and transport planners. In this regard, smartcard ticketing facilitates a genuinely seamless multimodal transport system.” (Ref: CO_0290)

Reducing congestion

  • “By limiting cash transactions at toll stations and eliminating cumbersome procedures for occasional users, EETS will facilitate daily operations for road users, improve traffic flow and reduce congestion.” (Ref: CO_0253)

Increasing the use of public transport

  •  “The use of public transport is facilitated by personalised information systems, accessible vehicles and pedestrian access, affordable fares and a user-friendly payment system.” (Ref: CO_0004)
  • “E-ticketing may increase the convenience of public transport.“ (Ref: CO_0034)
  • “The ease and convenience of purchase afforded by innovative ticketing systems in a city should attract more public transport passengers, resulting in less private cars entering the urban area and greater passenger satisfaction. The accessibility of public transport in general is enhanced with the introduction of a ticket valid for all services and vehicle types.” (Ref: CO_0285)
  • “Additionally, public transport operators can increase their effectiveness and reduce the overall operational costs by using the logistics and positioning tools, particularly benefiting from the diminished time needed for management. As a long-term benefit, an increase in the number of passengers can be expected due to the better service and reliability of public transport.” (Ref: CO_0279)