Maike Puhe (KIT – ITAS) On behalf of the ETAG Consortium

KIT – University of the State of Baden-Wuerttemberg and National Research Center of the Helmholtz Association

INSTITUTE FOR TECHNOLOGY ASSESSMENT AND SYSTEMS ANALYSIS (ITAS)

www.kit.edu

Maike Puhe (KIT – ITAS)On behalf of the ETAG Consortium

Integrated urban e-ticketing for public transport and touristic sitesDrivers and barriers for implementation

2 European Technology Assessment GroupITAS DBT FCRI ISI IST ITA TC RathenauETAG

Ticketing – Integrated Ticketing – Smart Ticketing

Different types of tickets, based on the mode, the area of travel and the technology

Users, especially when travelling abroad, are likely to loose overview

Integrated tickets are valid for all modes in that area and/ or for more than one operator

They are not necessarily “smart”

Smart tickets/ e-tickets usually store information electronically and pursue a multiservice approach

| Maike Puhe | ITAS | EP, STOA, 16.10.2013|

Terence Ong

3 European Technology Assessment GroupITAS DBT FCRI ISI IST ITA TC RathenauETAG| Maike Puhe | ITAS | EP, STOA, 16.10.2013|

Integrated ticketing has been on the agenda of EU Transport Policy for over a decade:


2001 White Paper: changing transport modes for passengers “highly problematic”, integrated ticketing “to facilitate transfers from one network or mode to another”

2006 Action Plan on Urban Mobility: assistance for urban ITS applications, promise to “launch a study on improving the interoperability of ticketing

2009 EC Communication “A sustainable future for transport” notes “Transport documents and tickets should be made electronic and multi-modal, while preserving privacy of personal data”

2011 White Paper: “Smart inter-modal ticketing, with common EU standards that respect EU competition rules is vital.”


Technical view on e-ticketing – Fare Media

Basically, two forms of e-ticketing media:


Smart Cards Most common e-ticketing medium, not only in transport Modern smart cards either equipped with RFID or NFC Communication with the reader either:

Contact-based Contactless

Mobile ticketing: Virtual ticket is sent to a mobile device, textual or graphical content Location independent Three technical solutions exist:

SMS based transactional payments Optical character recognition (OCR), e.g. QR code Near Field Communication (NFC)

5 European Technology Assessment GroupITAS DBT FCRI ISI IST ITA TC RathenauETAG|Maike Puhe | ITAS | EP, STOA, 16.10.2013 |


Most tourist destinations offer “destination card”, combining relevant tourist attractions on one card, often including public transport

Europe: no complete interoperability, several national organizations exist, European Alliance for interoperability has been set up in 2012

Many cities are experimenting with integrated e-ticketing, issuers are mainly public transport operators

High one-time investment costs, mainly beard by public transport operators and/ or authorities

Increasing importance of intermediaries: financial service providers and telecommunications operators opening up new business models

Situation today:


E-Ticketing example:

Nation wide approach for rail network and 8 local public transport networksCheck-in/ check-out NFC tag or QR code: GPS detection Mobile phone acts as a ticket machinePaying in advance for each trip is replaced by subsequent and monthly paymentAutomatic fare calculation Based on duration, length, discounts System allows best price calculation No tariff knowledge needed


Touch & Travel, Germany


Summary

Technology is available, but still no all encompassing solution for Europe

Various cities and regions in Europe are setting up e-ticketing schemes, mostly initiated by public transport operators

High one-time investments can be reduced significantly by applying modern technologies

Multi-service approach seems to have considerable attractiveness

most successful schemes in Asia already offer multiple services

Different types of e-ticketing media and identification technology exist

not yet clear which technology makes the run

likely that customers desire different payment options

Implementation problems must be caused by other factors



Socio-economic view on e-ticketing


Public transport operators and authoritiesRole:• Offer a well-established market segment• Inform users about products, tariffs and additional services

Possible benefits:• Increasing passenger levels• Reduces operating costs• Accurate data acquisition




Tourism sectorRole:• Offer a well-established market segment

Possible benefits:• Provides branding and marketing opportunities• Accurate data acquisition• Additional features (e.g. Smartphone guided city tours)




Financial service providersRole:• Development of interoperable application software• Issuing and promotion of contactless cards

Possible benefits:• Replace small cash transactions/ reduce cash handling costs• Driving forward the general acceptance of e-payment• Offers potentials for additional transactions




Telecommunications operatorsRole:• Development of NFC applications for mobile devices• Provide access to customers mobile devices

Possible benefits:• Additional services might attract and preserve customers• Additional fees for GSM/ UMTS transactions




Governments and other administrative authoritiesRole:• Provide strategic leadership• Support the roll-out

Possible benefits:• Reduces congestion and car-based emissions• Provides identity to the community • Increases economic conditions for companies




Existing and potential end-usersRole:• Purchase the product based on their willingness to engage

Possible benefits:• Enhanced ease of use• More flexible mode choice and easier interchange• Time and cost savings

... BUT


Socio-economic view on e-ticketing - Existing and potential end-users

Source: Flash Eurobarometer 312 (2011)

What‘s the market for integrated ticketing?

AECOM study, Flash Eurobarometer, EU Transport White papers, all indicate a „latent public support“ for integrated e-ticketing

...BUT


Socio-economic view on e-ticketing - Existing and potential end-users

Transport behaviour depends on:Purposes: commuting, leisure, business travelFrequencies: daily, regular, occasionalDistances and destinations Routines, attitudes and preferencesTechnological media

Modal choice does not depend on technical media alone

Most likely users: regular users and those not familiar with all tariffs (e.g. tourists)

Integrated tariff systems indeed encourage car users to try out public transport, but other attributes, such as accessibility or reliability must be provided to sustain modal shift


Conclusions


Variety of stakeholders with different interests and drivers – integration of additional services means increase in complexity

Several studies and surveys indicate that uncoordinated institutional action is seen as a major barrier for implementation

Exact nature of schemes should be left to local level, in respect to local circumstances, subsidy models and transport networks

The EU can encourage the use of existing standards, provide model agreements, facilitate the sharing of best practices, development of model designs and quality indicators

Apart from enormous dynamics in the market, user needs are particularly important for the success or failure of the schemes

There is reason to doubt that integrated ticketing alone will increase public transport usage, lack in empirical knowledge on user needs, expectations and (privacy) concerns


Many thanks for your attention!

|Maike Puhe | ITAS | EP, STOA, 16.10.2013 |


Project Design

|Maike Puhe | ITAS | EP, STOA, 10.10.2013 |

Phase 1: (01.01.13 – 15.06.13): Comparative overview of current ticketing systems used for public transport and touristic sites

Overview of existing and emerging e-ticketing systems Analysis of drivers, barriers and potentials of involved stakeholdersAnalysis of behaviour, perceptions and attitudes of end-users

Methodology: Desktop research

Phase 2 and 3 are optional Initiated when findings of phase 1 confirm the need for further researchInitial idea was to analyse the key factors to inspire the implementation and to give policy recommendations

Recently published studies have similar focus and give clear policy recommendations and guidelines

19 European Technology Assessment GroupITAS DBT FCRI ISI IST ITA TC RathenauETAG|Maike Puhe | ITAS | EP, STOA, 10.10.2013 |

Technical view on e-ticketing – Identification Technologies

• Global standard for credit and debit payment cards, including card accepting devices (e.g. ATMs)

• Members include Visa, MasterCard, American Express, JCB, China UnionPay

QR Code

NFC

EMV

• Usually attached to an item (e.g. a poster), containing information about it

• By scanning the code with phone, users receive marketing information

• Advancement of RFID technology (existing technology can be used)

• Integration of different independent payment services possible (electronic wallet)

Documents

Maike Puhe (KIT – ITAS) On behalf of the ETAG Consortium