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Smart TicketingLeading the way towards smarter public transport
July 2018
Contents
Foreword 01
Summary 03
05
07
09
11
13
15
16
1 PwC
This is the sixth edition of PwC’s annual Smart Ticketing Survey. This year we surveyed over 4,000 members of the public in the United Kingdom – doubling our sample from
ticketing in the public’s views of public transport provision. We asked them about their use of, and preference for, different public transport ticketing options and on what
survey results. We examine the market
– . This is
the opportunity to look back at the
public transport smart plans. Our ambition is that this report contributes
Foreword
2Smart Ticketing
3 PwC
Summary
This year’s survey results show smart ticketing has
normal when it comes to customers’ expectations. Since we began this survey in 2012, smart payment methods have taken hold across all aspects of our lives and our polling results now demonstrate how this is affecting the transport sector.
been in the mix with conventional paper
This rises to 25% when you remove those public transport services.
The is the potential
4Smart Ticketing
The key trends in this year’s Smart Ticketing report are:
1. The desire for and the current use of smart have both gone up, resulting in a smart demand gap nationally of 19% and of 25% when London
2. Price is key to incentivising adoption of smart. Trust,
loyalty are also important factors.
5. People value smart ticketing, but there are other factors that also need to be addressed if the
fully realised.
3. The future of ticketing will be more about smart and less about smart cards; but the key is to give customers a choice of
4. Features that people value the most in smart ticketing are
, followed by fairness and convenience.
5 PwC
Figure 1: Smart demand gap by frequency of public transport use
Results based on questions around customers’ current use and preference of smart ticketing for their journeys.
0 20 40 60 80
Veryfrequent
Frequent
Occasional
Infrequent
74%
67%
43%
28%
56%
39%
65%
6%
Preference Current
By frequency of travel Those who travel frequently
whilst ‘very frequent’ travellers
smart ticketing.
3
Compared with previous
use of smart ticketing have never been higher. Our survey results show that the smart
Further breakdown of the survey data by frequency of travel, age group and region provides insight into which market segments have the largest smart demand gaps.
The smart demand gap
1.
2.
• in the UK currently use a smart
2% use other).1
•
•
Note: We allocated respondents who use public
transport to the categories as follows: ‘Very
frequent’ = at least 5 times a week; ‘Frequent’
= 1-4 times a week; ‘Occasional’= 1-3 times a
month; ‘Infrequent’ = less than once a month.
6Smart Ticketing
What are smart tickets?
A dedicated transport smart card
A contactless debit or credit card
An app on a smartphone or
electronic device
A smartphone emulating a credit
or debit card
Figure 2: Smart demand gap by age
Results based on questions around customers’ current use and preference of smart ticketing for their journeys.
By age group Current use of smart goes up from older to younger customers, as does the desire to use smart. The smart demand gap is consistent across the age groups. There may be a mix of reasons behind this, from the younger age group’s desire to use electronic payment to the older group’s opportunity to take advantage of discounted or free smart card
0 20 40 60 80 100
18 – 34
35 – 54
55+
75%
65%
27%
47%
45%
55%
Preference Current
By region Market penetration in London is almost at saturation point. But
opportunities for growth of smart elsewhere, with the largest opportunities in the North of England.
Key:
Scotland
Northern Ireland North
East
North West
South East
East of England
London
Yorkshire & Humberside
West Midlands
South West
Wales
Figure 3: Map illustrating the size of the smart demand gap by region
East Midlands
7 PwC
Switching to smart
customers who currently
them more likely to use a
5
likely to use a smart option.
Lower prices
more. Greater trust
loyalty are also
important than a mere 5%
Figure 4:
think would make you more likely to use a non-paper “smart” ticket
than you are now?’
Price More customers will switch to smart at lower
is not enough. Our survey results indicate that 58% of customers who use paper tickets would switch to smart for a 10% discount (the largest
change), but only 15% would consider using more smart products for a 5% discount.
Younger customers are
shows that customers between 18-34 are most
0 20 40 60 80 100
18 – 34
35 – 54
55+
66%
55%
10%
51%
10%
21%
-10% price -5% price
who selected one of the following two options when asked: ‘what kind of tickets do you use most often for your….
8Smart Ticketing
Trust
33%
paper ticket users).
The option to use a ticket
Loyalty
84%
travellers.
9 PwC
Ticketing media
become available.
the same extent.
The use of smart ticketing media has increased between 2013 (35%) and 2018 (48%)
This has been driven by growth
smart media now in use.
Figure 5:
Paper 58%
Other 8%
Smart 35%
Paper 50%
Other 3%
Smart 48%
2%, A smartphone emulating a credit or debit card
31%, A dedicated transport smart card
2%, A contactless debit or credit card
7%, An app on a smartphone or electronic device
10%, A contactless debit or credit card
26%, A dedicated transport smart card
5%, A smartphone emulating a credit or debit card
2013 2018
10Smart Ticketing
29%buy their tickets on the vehicle (bus, train etc.).
15%buy their ticketsat the barrier/gate using a smart ticket.
28%buy their tickets at station (From the staff/counter, or from a ticket vending machine).
23%buy their tickets online
Purchase channels
buy their public transport tickets now.
7
sure that customers are able
anywhere.
Note: remaining 6% of respondents indicated ‘other’.
1 2 3
11 PwC
Prioritising features
5
6
7
8
5
7
8
6
Value of S
mar
t fea
tures
and payment history (63%)
information available on journey
Transparent and accessible
personal details (60%)
ticketing without registering
The a
bility to
use sm
art
Pers
onal
ised
info
rmat
ion
on
jour
ney
disr
uptio
ns d
eliv
ered
to
your sm
art d
evic
e (5
8%)
Ability t
o load pre-paid or season
tickets onto your smart ticketing
product (52%)
We asked all survey respondents to state how valuable
smart features ‘valuable’ to ‘extremely valuable’. However, there are certain smart features
implementing their smart offering.
The features demanded by respondents in a smart offering align to their incentives for smart adoption.
12Smart Ticketing
1
2
3
4
%
1
2
3
4
Value of Smart features
Discounted price compared with
paper tickets (72%)
Automatic refunds fo
r servic
e
delays and can
cella
tions
(72%
)
pay
the
low
est (
71%
)
capp
ed fa
res
so y
ou a
lway
s
Aut
omat
ic c
alcula
tion o
f
transport (63%)
products across all modes of
Ability to use smart ticketin
g
Smart features were generally ranked consistently across all age groups
13 PwC
People value smart ticketing and it will increase overall uptake. But there are other factors with greater power to incentivise customers to travel more often on public transport.
public transport travel.
14Smart Ticketing
. Reliability
.
This year’s survey results show that:
8 This is the market that
just under one
.
8%
7%
44%
price option.
30%Greater reliability
29%
29%
15 PwC
Survey respondents were asked to state three words that came to mind when they think about their journey by public transport (and they were asked
The most frequently recurring words used by respondents are illustrated in this word cloud.
Inaccessible
Fast
Unreliable
Necessary
Unpleasant
Delay
Timetable
Weather
InconvenientPublic
Delays
Quick Poor
DirtyReliability
HassleUnclean
Cheap
Reliable
Cancellations
OkayPain
Ease
AnxietyTime
Quiet
Availability
Access
Fun
GermsClean Free
NoisePrice
Punctual
Environmental
ConvenientCostly
Direct
Quicker
Timely
Full
Hot
Queues
Expensive
Our survey results show that the perception of public transport is tied to
cleanliness and convenience.
16Smart Ticketing
Easy
with Opinium. The survey was
(www.opinium.co.uk).
February 2018
The research was conducted with Opinium. Research overview:
