10 Innovative ticketing systems for public

The CIVITAS Initiative is a European that supports cities in the implementation of an integrated sustainable, clean and energy efficient transport policy. Lessons learned during the planning, implementation and operation phases of the activities are summarised in twelve Policy Advice Notes and give an idea on how to cope with urban transport problems which cities of the European Union have to face in the future. Policy AdviCe Notes Innovative Ticketing Systems for

Innovative ticketing systems for public transport Facilitating access to public transport by offering an integrated ticketing and payment system

Within CIVITAS II (2005 – 2009) different Overview measures were implemented in which innovative ticketing and payment sys- D e s c r ip t i on of the mea s u r e s tems for public transport were devel- To enhance the use of public transport, cities oped in order to increase the attrac- should aim at making the ticketing system at- tiveness of this transport mode and to tractive and easy to understand for everyone. increase the share of travellers using The pricing system should be coherent and simple with a reasonable number of tickets that this mode. Comprehensive information takes users' needs into account. The basis for about the implementation processes should be transparent and easy to under- stand. Tickets and payment facilities should be and results were collected and are widely available, for example: summarised in this Policy Advice Note • At sales points distributed throughout the city to inform politicians and decision-mak- • At ticket vending machines at various plac- ers interested in these actions. es (e.g. at stations, at main stops or in vehicles) • On the internet (e.g. subscription for holders) • Via mobile phones

Integrated ticketing and tariff policies between different public transport operators (e.g. lo- cal public transport and the national railway) should be offered to make tickets valid for all public transport modes and for a whole region.

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Easy and attractive payment methods should save money because the best price for the trips be offered. For example, innovative smart card is calculated automatically (e.g. after a certain systems can be implemented, which can be amount of trips passengers get a price reduc- used for contactless payment of integrated tion). If ticket vending machines are provided at fares. They may also serve as an important bus stops or in vehicles the time for element of marketing public transport. Smart diminishes and the reliability and efficiency of payments also can provide valuable data on public transport services increases due to the behaviour and mobility patterns of users. fact that tickets are not bought from the driver. An important issue is also the availability of sales points for different user groups (e.g. eld- Ta r g e t g r o u ps erly people or people with reduced mobility).

The main target groups of the measures are For companies current and potential public transport users, Private companies and their employees can but the measures can be targeted at different profit by the new systems when sale and sub- specific groups, such as schoolchildren, stu- sidy of public transport fares for the employ- dents, families, tourists, visitors etc. Targeting ees are simplified. Public transport companies the young can be especially valuable in foster- especially benefit from this measure by an in- ing appropriate mobility habits in later life. creased number of passengers generated by the service. By offering tailor-made tickets for specific users groups new markets could be I m pac t s a n d b e n e f i t s developed. Additional sources of information about customers are being created, provid- Many potential benefits from public trans- ing valuable data for further analysis for public ticketing measures were explored transport companies. during CIVITAS II, and the general findings and impacts are reported here. F ramework con di t i o n s For the public f o r s u c c e ss The ease and convenience of purchase af- forded by innovative ticketing systems in a city The key-factor for success is the development should attract more public transport passen- of a user-friendly and simple system. For ex- gers, resulting in less private cars entering the ample, the function of new ticket vending ma- urban area and greater passenger satisfaction. chines should be designed in a self explanato- The accessibility of public transport in general ry manner so that no further help is necessary. is enhanced with the introduction of a ticket They should offer a multilingual service for for- valid for all services and vehicle types. eign tourists and visitors. For the introduction of a smart card system it is advisable to use a For individuals standard architecture, e.g. the ITSO (Integrated Each public transport user can benefit from a Transport Smartcard Organisation). One issue new ticketing system as the new offers are bet- that has to be resolved is the division of ticket ter adapted to the needs and patterns income between the different operators (e.g. of each person. When using a smart card or between rail operator and urban public trans- mobile phone, public transport passengers can port operators).

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• Approval by the traffic / transport depart- Implementation steps ment and/or urban community council on ○○ Modification of the pricing system and timeline ○○ Choice of new technologies depending on the costs and technical complexity For a successful introduction of new ○○ Procurement and location of self-service ticketing systems, the following working machines and ticket validators steps, supporting measures and time- • Partnership agreements on the usage of the frames have to be considered. smart card for other purposes (entrance to museums, for sport and leisure activities, etc.) WORKING STEPS 3. Elaboration of the ticketing system 1. Collection of data required • Definition of prices and designing of the • Investigation of legal requirements (e.g. ticket products according to the user needs concession rights, subsidy system, division • Agreement on the technical aspects of of income etc.) cards, vending machines and ticket vali- • Study of the target area (e.g. of the current dators (considering needs of handicapped state of the public transport network, of the people and the availability of different lan- existing ticketing system, of the policy on guages) mobility of the city, extension to regional or • Identifying framework conditions for the networks, status of different op- availability, registration, payment and deliv- erators' systems) ery of tickets • Behavioural survey and market research on • Agreement on monitoring and management customer needs (travel habits, perception of strategies different modes, satisfaction, usage of par- • Selection of other services to be integrated ticular types of tickets, investigation and se- into the system (e.g. car-sharing, public lection of potential applications for different bikes, parking, etc.) tickets, etc.) • Agreement on graphical user interface and • State of the art analyses of pricing and tick- software configurations eting • Collection of experiences from comparable 4. Tendering and negotiation with ticket- cities ing suppliers

2. Formal decisions 5. Implementation and installation • Agreements on a joint system between all • Connecting the central management system transport operators, especially on financial for the ticket integration (ticketing server) to contributions from the operators and rev- the other transport operators management / enue distribution afterwards pricing systems • Discussions whether the participating oper- • Adoption of the software for the internet ators need to pay commission from the be- (e.g. for online subscription of smart cards) ginning of the project or only after a certain • Production and distribution of the machines running time has taken place (for ticket vending, ticket validators, etc.)

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• Establishing a partnership with shopkeep- The preparation phase can last up to 16 ers, hotels, etc. where tickets can be bought months (design study, elaboration of the sys- • Training sessions for the control inspectors tem, formal decisions, selection of locations, from the passenger transport unit, the dis- etc.). Within CIVITAS II the following time peri- tributors and retailers ods were needed: • Market research to investigate the needs of 6. Promotion of the new services and the customer takes about two months their advantages • Initiating a study on payment possibilities requires about five months 7. Evaluation and monitoring of system • About one month is needed for negotiations with public transport operators, but this time depends on the attitude of the stakehold- Ac c o m pa n y i n g m e a s u r e s to ers towards the measures and the number a m p l i f y p o si t i v e e f f e c t s and types of operators involved (e.g. nego- tiations with a railway operator may require If the following measures are implemented in longer period due to different legal regula- parallel with the introduction of new ticketing tions) systems, the success of the actions can be enhanced and positive synergy effects can be The implementation phases vary between 2 achieved: and 10 months according to the system to be • Offering a wide range of other services to installed. Within CIVITAS II the following time the public transport users and/or smart card periods were needed: holders (e.g. access to car-sharing or bike- • 2 to 6 months for the implementation of in- sharing, cultural and leisure activities) tegrated public transport ticketing products • Discounted prices for bike-sharing and/or and payment methods park and ride schemes in the cites • 8 months for the establishment and adjust- • Introduction of a travel planner (e.g. on the ment of the equipment for a smart card sys- mobile phone) to find the right route, means tem (changing the software on the valida- of access, and to order the ticket for this tors; installation of antenna and interface on route at the same time each vehicle; installation of an antenna on • Installation of security monitoring systems the bus terminal’s main , connection (e.g. cameras), which can protect machines with the ticketing server; ticketing server up- from vandalism dating) • 4 months for the development and adop- tion of a public transport ticketing system at T I m e f r a m e park and ride sites • 10 months for the development and adap- The experiences of CIVITAS II provide insight tion for an internet tool applicable for the into the typical duration of the planning and im- subscription of smart cards plementation phases. All in all the introduction • Training sessions for integrated ticket dis- of a new ticketing system requires about two tributors requires about two months years.

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However, it has to be considered that certain What are costs can be avoided by introducing the meas- ures. Each transport operator can reduce costs the investments for distributing and selling tickets because all involved? operators use the same tickets and share the same ticketing machines, resulting in more fa- vourable procurement terms. Due to high oper- Costs vary greatly according to the type of sys- ational costs a common service provider may tem implemented, to the number of ticketing take over these tasks. Technical developments machines/validators as well as the number of of applications for mobile phones or PDAs may vehicles to be equipped with new technolo- lead to a more cost-saving way of ticketing. gies. However, the following costs categories need to be considered: • Costs for specifying and developing a new ticketing system (consultant, involvement of Main drivers that transport operators, etc.) • Software for integrated ticketing systems (to serve as precursors connect the systems of different operators, to success internet tool for subscriptions, user software with an easily understandable interface, etc.) • Equipment for vehicles, stops and stations Within CIVITAS II the following factors (antennae, ticket vending machines, valida- were identified as the main drivers for the tors, etc.) initiation as well as for an efficient and • Maintenance costs for the equipment successful implementation of the meas- • Maintenance agreement for software, if pro- ures described above: prietary • Costs for updating the system and the soft- • Price discounting for integrated public ware transport tickets (as compared to individual • Additional costs (e.g. for the development of tickets) a monitoring system) • Good cooperation with the public transport operators (local, regional and national) The following experiences, concerning the lev- • A strong partnership among various stake- el of funding necessary were made within the holders interested in encouraging the use of CIVITAS II measures: public transport 1. EUR 13,000 investment costs for hard- and • Strong political support, e.g. for adapting software for an integrated ticketing system the ticket system to different user needs 2. EUR 712,500 for the purchase of 16 ticket • A good promotional and marketing strategy, vending machines with associated back- tailored to the different target groups office central management system • Clear, comprehensive and accessible infor- 3. EUR 60,000 maintenance costs per year for mation on the new system 16 ticket vending machines • Knowledge exchange with other peer cities 4. EUR 10,000 spent for marketing, promotion using the same or a similar ticketing system and training activities on a new ticketing providing the opportunity for joint procure- system ment of technical equipment

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• Changing government rules to favour the clear strategy on how to distribute the revenues introduction of integrated ticketing schemes among the public transport operators has to be • Opening ticketing to other transport services, agreed to ensure that all parties are benefiting including park and ride, bicycle parks, etc. without any net loss of revenues caused by the introduction of an interoperable ticket. To enhance comprehension, it is important to develop easily understandable systems (e.g. Strategies structure and transparency of the tariff system, user-friendly software interfaces, etc.), to com- for a successful municate and promote the benefits of the of- implementation fers, as well as to provide informational mate- rial on its use.

During the implementation phases dif- Financial management ferent barriers can occur. To overcome Ensure funding obstacles the entire implementation and For the introduction of an integrated ticketing planning process should be accompanied system by different transport operators, it is by regular discussions and working group advantageous that the main transport operator meetings concerning different issues, is responsible for the purchase and installation such as those described in the following of the equipment, such as the ticket vending paragraphs. machines. In doing so, smooth and rapid intro- duction is ensured. The most effective solution Political Support is to implement the system through the trans- In order to ensure political support, it has to be port authority or transport department which is determined that the majority of the public trans- interested in the wider aspects of mobility in port users benefit from a new and transparent the city and in the participation of the different system, in particular by improving accessibil- transport operators. ity or by offering tailor-made tariffs for specific user groups. Politicians’ presence should be en- Ensure the usage of new tickets gaged from the beginning of the planning proc- Effective promotion and marketing campaigns ess to assure sustained support for the meas- can ensure that the new offers are used and ure. They should be familiar with the advantages that a certain level of revenue, due to ticket of implementation of the system, underlining its sales, can be maintained for the operators. coherence with strategic, long term-policy doc- This can avoid the subsequent withdrawal by uments already adopted (e.g. strategy for city public transport operators due to lack of use. development, transport plan or transport policy). Limited amount of technical equipment Acceptance For medium-sized cities, which usually buy only Support of the transport operators and their a limited number of ticket vending machines, acceptance needs to be guaranteed. Consul- ticket validators, etc., it is recommended that tations and communication are necessary in other cities interested in the system be identi- order to explain the aims and benefits of the fied, if possible. Together a joint procurement new system and to assess the impacts and can be accomplished and the technical equip- benefits which occur for all parties involved. A ment can be purchased for a lower unit price.

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Technical aspects should be conscious that these initiatives are Interoperability technically complex and require significant in- State of the art studies and tests should be im- vestments in terms of time and money. But if a plemented to ensure the interoperability of the complex tariff structure is introduced and nu- various technical systems. Additional manage- merous transport operators are involved, then ment support, financial resources and staff as- the systems are efficient tools to address these sistance as well as an improved risk manage- problems and to make the system more user- ment should be offered. Furthermore, regular friendly. The measures all need a continuous updates of the software and manual checking mobilisation of stakeholders and efforts to con- of the ticketing system have to be undertaken. vince new sales points to take part. It is important at the specification stage to set To ensure a clear distribution of responsibilities requirements on interoperability and to consid- and to regulate the commitments of the differ- er an "open systems" approach, anticipating ent partners and stakeholders (public transport the possibility of later upgrades and expansion authorities, public transport operator, car park to other modes / operators. manager, public bikes manager, etc.) the co- operation and dialogue between these different Data security parties have to be strengthened and supported Much effort has to be deployed to ensure the in meetings organised by the measure leader. security of personal data and bank details where tickets can be paid for with cash cards and/or credit cards at ticketing machines and on the in- K e y e l e m e n t s to b e ternet. Therefore, a redesign of the public trans- c o n sid e r e d port operators’ websites may be necessary. • The pricing system should be coherent Maintenance and simple with a reasonable number For adequate maintenance of the technical of tickets that takes the user's specific equipment and services a contractor has to be needs into account found with appropriate skills and knowledge. • The decisions on the type of joint sys- tem as well as on the division of the Legal framework condition financial contributions and the ticket in- It is important to ensure, from the beginning of come have to be clarified between the the project, that the scheme design complies different operators at the beginning of with national and local legislation. It must be the project clear that the competition regulations are con- • In order to reduce costs medium sized sistent with the integrated ticketing service cities especially should look for other when different transport operators are involved. cities with the same interests with which In some countries (e.g. United Kingdom) the joint procurement can be accomplished law prohibits the formation of transport asso- and the technical equipment can be ciations which offer integrated tickets in order purchased at lower unit prices to ensure fair competition frameworks. • State of the art studies and tests should be implemented to ensure the interop- Organisation erability of the various technical sys- All cities (especially medium-sized cities) which tems aspire to develop a smart payment system

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Who are the key people to be involved?

Sta k e h o l d e r s Decision makers The leading role for the measure providing pol- The following stakeholder organisations / indi- icy guidance is generally assumed by the local viduals should be involved as informal advisors city administration (e.g. the transport or traffic or supporters: department). Also the main transport operator or the public transport authority responsible for • Public transport users participating in meet- the entire public transport in the region should ings and/or contacted by surveys to gain manage the measure as project leader. In many information on their specific needs. Users countries it is the city council that approves should be given the possibility to test differ- budgetary expenditures for investments in ent tickets, tools and equipment. public services, so its role should be consid- • Different specific target groups (students, ered separately for each country. people with reduced mobility, elderly peo- ple, employees etc.) to collect special re- Operators quirements and needs The operators of the ticketing service are the • NGOs focusing on sustainable mobility (e.g. public transport providers. green organisations) which might cooperate in promotion activities for this measure Financers • Public enterprises to contribute to the de- The measures are initiated and financed by the sign, implementation and promotion of the local administrations, but the transport opera- new system as well as to build a strong local tors will be asked to contribute financially to partnership the project in the future and this will require • Associations of hotels, museums as well as some negotiations. The investment costs other leisure and retail sites contributing to could be monitored by an independent organi- the development of special ticket offers for sation, in particular if public money is used the tourists and visitors audit court of the country may take over the • Local and regional politicians responsibility. • The cooperation with providers of the tick- eting machines and technical specialists is Other partners important for an on-going technical support For the execution of the different studies and surveys required (such as databases), universi- ties or similar research institutions can be ap- M a i n p r o j e c t pa rt n e r s pointed. Private companies and consultants can support the measure leader in the project The involvement of the following partners is management and the technical development of critical to the successful implementation of the the system. Private enterprises are needed for measures: the service and maintenance of the technical equipment.

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Enumeration of practical examples from CIVITAS II

Within CIVITAS II 7 cities implemented measures dealing with introducing new ticketing systems:

Malmo (Sweden): Mobile internet information on services in connection to bus information

Krakow (Poland): Integrated ticketing and tariffs

Toulouse (France): Innovative multimodal public transport contracts, services and electronic ticketing

Norwich (United Kingdom): On-street ticket vending machines

La Rochelle (France): Development of an integrated pricing system, implement further integration of ticketing as well as smart card system

Ploiesti (Romania): Development of a new ticketing system for public transport

Preston (United Kingdom): Implementation of integrated public transport ticketing as well as an integrated transport ticketing system

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10 Policy AdviCe Notes Innovative Ticketing Systems for Public Transport

CIVITAS Policy Advisory Notes – All topics at one glance

Ac h i e v i ng more eff i c i e n t ca r u s e New forms of vehicle use and ownership 01

C l e a n e r v e h i c l e s a n d a lt e r n at i v e f u e l s Reduction of pollutant emission of road traffic 02

Cyc l e - f r i e n d ly c i t i e s Fostering environmental friendly and healthy mobility 03

I n t e g r at i o n o f pa r k i n g a n d ac c e ss management Improving the living quality of urban spaces in sensitive areas of the city 04

Lo g ist i c s a n d f r e i g h t dist r i b u t i o n Environmentally friendly goods distribution in cities 05

S m a rt m o b i l i ty management mea s u r e s Successful ways to influence people’s mobility behaviour 06

P r i o r i t is at i o n o f p u b l i c t r a n sp o rt i n c i t i e s Establishing a fast and reliable environmentally-friendly mode of transport 07

P r o m ot i ng a new mob i l i ty culture i n c i t i e s Information, marketing and education 08

Innovative information systems for public transport Facilitate access to public transport by providing reliable information 09

Innovative ticketing systems for public transport Facilitate the access to public transport by offering an integrated ticket system 10

Enhancing the quality of public transport services Making public transport more attractive for citizens 11

Information technology services for traffic control Innovative tools for optimising traffic management 12

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In addition, you get in-depth knowledge of more than 650 innovative showcases from the CIVI- TAS demonstration cities.

Visit the CIVITAS website and search for prime ex- amples of experiences in sustainable urban trans- port currently being undertaken in cities. If any of the ideas suit your city, or you are just interested in learning more, you may then contact the relevant person responsible for this measure.

Publisher: CIVITAS GUARD – Evaluation, Monitoring and Dis- Contact semination for CIVITAS II. Author: Institute for Transport Stud- ies, University of Natural Resources and Applied Life Sciences (BOKU), Vienna. Layout: FGM-AMOR – Austrian Mobility Re- CIVITAS Secretariat search. Sources: All photos are provided by the CIVITAS cities C/o The Regional Environmental Center and the CIVITAS GUARD team (unless otherwise noted) and ap- for Central and Eastern Europe (REC) proved for reproduction in this publication. Figures and values Ady Endre út 9-11, 2000 Szentendre provided are mainly based on the outcomes of the CIVITAS dem- HUNGARY onstration projects, reported by the participating cities. Further information from literature has been used, where appropriate. Edition 2010. Printed in Austria. E-mail: [email protected] Tel: +36 26 504046, Fax: +36 26 311294 Neither the European Commission, nor any person acting on be- half of the Commission, is responsible for the use which might be made of the information contained in this publication. The views expressed in this publication have not been adopted or in any way approved by the Commission and should not be relied upon as a statement of the Commission‘s views.

The CIVITAS Initiative is co-funded by the Energy and Transport parts of the EU’s RTD Framework Programme.