MARKETING BUS TRAVEL BY PRE-PAYMENT FARE SCHEMES - AN ASSESSMENT OF THEIR IMPACT

In recent years public transport operators have initiated a variety of schemes where people purchase their tickets prior to travel. This paper examines some of the objectives claimed for such schemes. It considers the two main types of prepayment ticket: travelcard, which generally gives unlimited travel within a defined area and time of validity; and multi-ride tickets, which provide for a fixed number of rides. The paper concentrates largely on greater Manchester PTE, whose prepayment ticketing schemes comprise "Saver Seven", a weekly or monthly travelcard, and "Clipper Card", a 10 trip multi-ride ticket. The effectiveness of these tickets is examined by considering the levels of ticket sales and market penetration. The types of user and nature of the journeys made are examined. Such tickets enable a sales strategy based on market segmentation and offer the opportunity for differential pricing. By considering the response to changes in the price of such tickets and in the general level of fares an estimation is made of the price elasticity for prepayment travel. The revenue implications for operators of prepayment in the short term is examined using this information. Such "costs" are compared with the benefits arising from faster boarding times and improved cash flow and revenue security. Conclusions are drawn regarding the relative merits of the different types of prepayment scheme to the operator, the travelling public, and in terms of wider transport policy goals. These are related to the type of use made of such tickets and the policy followed in relation to their sale. (Author/TRRL)

  • Availability:
  • Supplemental Notes:
    • Public Transport Planning and Operation. Proceedings of Seminar L held at the PTRC 11th Summer Annual Meeting.
  • Corporate Authors:

    PTRC Education and Research Services Limited

    110 Strand
    London WC2,   England 
  • Authors:
    • BOYLE, R M
    • LING, D J
  • Conference:
  • Publication Date: 1983

Media Info

  • Features: Figures; References; Tables;
  • Pagination: p. 99-116

Subject/Index Terms

Filing Info

  • Accession Number: 00382771
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • ISBN: 0-86050-112-4
  • Report/Paper Numbers: Volume P240
  • Files: ITRD, TRIS
  • Created Date: Apr 30 1984 12:00AM