2009 marketing plan oct2 v6 - app06.ottawa.ca · Ottawa. Service, marketing and operating plans...

OC Transpo 2009 Market in

g P lan

A qual i ty exper ience

TA B L E O F C O N T E N T S

1 . I N T R O D U C T I O N

1.1 Background. . . . . . . . . . . . . . . . . . . . . . . . . . page 1.1

1.2 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . page 1.2

1.3 Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . page 1.4

2 M A R K E T D E F I N I T I O N

2.1 Transit usage . . . . . . . . . . . . . . . . . . . . . . . . . page 2.1

2.2 Demographic change . . . . . . . . . . . . . . . . . . page 2.2

2.3 Fare payment . . . . . . . . . . . . . . . . . . . . . . . . page 2.3

2.4 Off-peak market potential . . . . . . . . . . . . . . page 2.4

3 P R O D U C T D E F I N I T I O N

3.1 Convenience . . . . . . . . . . . . . . . . . . . . . . . . . page 3.1

3.2 Capacity and reliability . . . . . . . . . . . . . . . . . page 3.2

3.3 Affordability . . . . . . . . . . . . . . . . . . . . . . . . . page 3.4

3.4 Ease of use . . . . . . . . . . . . . . . . . . . . . . . . . . page 3.5

4 P R I C I N G

4.1 Fare level . . . . . . . . . . . . . . . . . . . . . . . . . . . page 4.1

4.2 Tickets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 4.4

4.3 Student eligibility . . . . . . . . . . . . . . . . . . . . . page 4.6

4.4 Upass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 4.7

4.5 Concession fares . . . . . . . . . . . . . . . . . . . . . . page 4.8

4.6 Seniors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 4.9

4.7 Ecopass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 4.9

4.8 Daypass . . . . . . . . . . . . . . . . . . . . . . . . . . . page 4.10

O C T r a n s p o M a r k e t i n g P l a n , C i t y o f O t t a w a , 2 0 0 9

1 4 O c t o b e r 2 0 0 8 , T r a n s i t S e r v i c e s B r a n c h ( i )

C O N T E N T S ( C O N T ’ D )

5 C O M M U N I C AT I O N S T R AT E G Y

5.1 2008 service improvements . . . . . . . . . . . . . page 5.2

5.2 Safety and security . . . . . . . . . . . . . . . . . . . . page 5.3

5.3 Customer appreciation . . . . . . . . . . . . . . . . . page 5.3

5.4 Transitway signage . . . . . . . . . . . . . . . . . . . . page 5.4

5.5 Web services . . . . . . . . . . . . . . . . . . . . . . . . . page 5.4

5.6 Park and Ride . . . . . . . . . . . . . . . . . . . . . . . . page 5.5

5.7 Environment . . . . . . . . . . . . . . . . . . . . . . . . . page 5.5

5.8 Cleanliness . . . . . . . . . . . . . . . . . . . . . . . . . . page 5.6

5.9 Events & community development . . . . . . . . page 5.6

5.10 Bayshore station . . . . . . . . . . . . . . . . . . . . . . page 5.7

5.11 Transplan 2009 . . . . . . . . . . . . . . . . . . . . . . . page 5.8

5.12 RCMP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 5.8

5.13 Off peak service . . . . . . . . . . . . . . . . . . . . . . page 5.8

5.14 Affordability . . . . . . . . . . . . . . . . . . . . . . . . . page 5.9

5.15 Priority seating . . . . . . . . . . . . . . . . . . . . . . . page 5.9

5.16 Consolidated point of contact . . . . . . . . . . . . page 5.9

5.17 Automated next stop announcements. . . . . page 5.10

5.18 Online trip planner integration with STO . . page 5.10

5.19 Christmas food drive - 25th year . . . . . . . . page 5.10

6 S A L E S TA R G E T S

6.1 Fare products . . . . . . . . . . . . . . . . . . . . . . . . page 6.1

6.2 Average price . . . . . . . . . . . . . . . . . . . . . . . . page 6.1

6.3 Other revenue sources . . . . . . . . . . . . . . . . . page 6.2

6.4 Establish advertising value. . . . . . . . . . . . . . . page 6.4


1 4 O c t o b e r 2 0 0 8 , T r a n s i t S e r v i c e s B r a n c h P a g e i i

• integrated service, communication and pricingstrategies

• increased customer-base

• increased revenue : cost ratio

• investment in service quality & convenience

• balanced fare media to attract new riders andreward existing riders

OC Transpo Market in

g P lan

2009

1 I N T R O D U C T I O N

1.1 Background

Marketing strategy and activities play an important role in retaining and attractingpublic transit riders in Ottawa. Marketing of transit services optimizes the mix ofprice, product, social responsibility, service delivery and promotion - in a way thatwill satisfy consumer needs for mobility as well as achieve the best possible balancebetween revenue and cost, and thus minimize dependency on municipal taxation.Successful marketing can maximize the potential for sustainable growth of publictransit, which will help reduce Ottawa's use of private automobiles, ease the require-ment for future investment in city roads, as well as reduce greenhouse gas emissions.

In late 2007 and early 2008, OC Transpo surveyed both employees and the publicto determine the attitudes of the providers, recipients and potential recipients of OCTranspo services. Results obtained from these two major surveys, as well as thenecessity of responding to population growth, transportation demands and signifi-cant changes in gas prices, form the basis for strategies outlined in the OC TranspoMarketing Plan for 2009.

There is a clear consensus in survey results that, for OC Transpo to succeed, con-venience, reliability, and high levels of service availability, must be the foundation fordelivering customer service excellence - and these in a way that is both friendly andaffordable.

The OC Transpo Marketing Plan considers problems and opportunities that havebeen identified in the market, existing and potential transit products, and an assess-ment of consumer needs and attitudes, including trends in purchasing behaviour.This analysis relies on measurement of Ottawa market characteristics, as well as basicmarketing and economic principles, and comparison with experiences in other tran-sit jurisdictions of similar size in Canada.

The transit market in Ottawa is strong in terms of ridership. Ottawa has always hada high modal split in favour of transit use amongst commuters, and comparesfavourably even to Toronto and Montreal, where subway service is provided. Since2001, there has been an average annual increase in public transit ridership of 2.4 %,and in 2008 ridership growth to the end of July was 4.8% over 2007 levels.

Some of this recent ridership growth is attributable to population growth, and to thetransit fare structure and price differential between various fare media, especially dis-counted or concession fares. The marketing plan is based on strategies that not onlyincrease mobility across the population, but also increase ridership in a way that


1 4 O c t o b e r 2 0 0 8 , T r a n s i t S e r v i c e s B r a n c h P a g e 1 - 1

increases revenue, as well as increase transit’s modal share and ridership per capita..

Opportunities exist in 2009 for continued growth and success of public transit inOttawa. Service, marketing and operating plans have been developed to build on thepatterns of growth established since 2001.

The 2009 version of the OC Transpo Marketing Plan extends to all products andservices provided under the ‘conventional service’ banner - i.e., it does not includePara Transpo services.

1.2 Overview

In 2008, ridership has increased at a rate higher than the increased investment inservice hours, and higher than the rate of population growth. This ridership increasewas influenced by several factors, including prior years service investment, highgasoline costs, increased traffic congestion, increased marketing and promotion, andeffective service design - i.e., effective positioning of service.

When growth is well planned and managed, the new customers it brings to transitwill become committed, long-term riders, willing to pay for high quality service. Thehigher service levels required to adequately meet demand will benefit all riders - newand existing - through an overall increase in capacity and reliability. This in turn willreduce the rate of ridership attrition, creating growth that is sustainable.

However, rapid growth like that experienced in 2008 also presents challenges -specifically:

i) in the areas of service availability and reliability, which are our ability to deliverservice that meets demand, and

ii) in the area of trip experience, which is the general impact of crowded buses andschedule disruptions on all riders.

These challenges are reflected in customer attitudes as measured by comments andsurvey results. Complaints about over-crowding and missed trips increased by 75%inthe period January to July 2008, compared to the same period in 2007. Poorly man-aged, rapid growth can create undesirable operating conditions and eventually dis-places as many riders as it attracts.

OC Transpo is nevertheless well positioned in 2009 to capitalize on a strong demandfor service, provided we invest in areas where we have the capability of deliveringservice consistent with our standards for quality, and provided we position new serv-ice where there is a known demand from identifiable market segments.



The opportunity also exists in 2009 for improving the revenue-cost ratio if we pro-vide new service where we can attract new customers that pay full fare rather thansimply providing more rides to existing customers. The marketing strategies outlinedin this plan are designed to expand the customer-base by:

i) providing and promoting valued service to potential new riders;

ii) delivering and communicating high standards of service-quality to retain exist-ing riders; and

iii) promoting the convenience and advantages of using less-costly service options,such as travel during off-peak times.

Ridership and revenue projections for 2009, shown in Figure 1.2, are based on a5.7% increase in service hours over 2008 levels, a 7.5% increase in fares effectiveJuly 1, 2009, and an increase in ticket prices effective January 1, 2009. This magni-tude of growth also assumes an increase in the transit customer base, resulting frompromotional campaigns and service positioning which are directed towards attract-ing new riders.



Projected 2009 ridership, revenue and service levels

Figure 1.2

ridership service hours fare revenue

increase increase millionsover previous year over previous year

2009 5.10% 5.70% $155.302008 4.50% 1.90% $135.502007 4.10% 3.20% $127.202006 2.60% 5.50% $118.30

1.3 Objectives

Revenue Cost Ratio

Ottawa city council has established a target revenue:cost ratio of 50% for transit.Between 1999 and 2008, the r/c ratio has in fact reduced from 58% to 48.8%, inspite of increased investment in service:

In 2008, the ratio has dropped even though ridership has increased. In 2009, how-ever, the marketing plan forecasts an improvement to 49.8%. Revenue opportuni-ties exist in four areas:

i) attract new riders at times when the cost to provide service is lower;ii) increase fares to keep pace with transportation costs; iii) adjust differential between fare products to take advantage of demographic

changes and purchasing habits, without undermining social objectives for con-cession fares; and

iv) develop sources of revenue other than fares.

Ridership

Ridership will increase by 5.1% in 2009, if population growth continues, economicactivity remains at current levels, and the cost of operating a car remains high. This5.1% is also based on service and operations plans that provide the right mix ofcapacity and reliability, designed to:

i) meet the current high demand for peak-period commuter service; andii) develop less-costly off-peak service at sufficient levels to attract new riders.



OC Transpo revenue : cost ratio

year

40.0%

50.0%

60.0%

70.0%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

OC Transpo image

The identity and public reputation of OC Transpo and associated services influencepeople’s decisions whether or not to use transit. Transit riders need positive rein-forcement that they have made the right choice, and potential new riders need tohave confidence that OC Transpo will be a good alternative to car travel.

Brand quality is continuously reinforced at every possible opportunity, from the qual-ity of transit publications, to vehicle cleanliness, livery design, and positive mediacoverage. In 2009, social marketing efforts will be concentrated in the followingareas:

i) technological innovation, such as mobile service information via the website;ii) positive environmental impact, including the Green Rewards program,

Virtucar, and hybrid diesel-electric buses;iii) Transitway identity, starting with 25th anniversary recognition in 2008, and

including a major re-design of signage at stations; iv) community relations, especially through development of partnerships with

events and major community destinations; v) profiling of positive and popular transit role models within the community; andvi) reinforcement of the desire to preserve a safe and secure travel environment.

Annual publication of performance levels will also contribute to a positive image ofOC Transpo. Customer satisfaction levels measured in the 2009 Usage and AttitudeSurvey will, it is expected, reflect a continuing improvement in the general reputa-tion and image of OC Transpo.

Simplify navigation

In 2008, 29% of infrequent riders believe the transit system is “difficult to figure outand use”, which represents a barrier to attracting new riders to transit. Wayfindingand navigational signage in Transitway stations will be redesigned, customized andupgraded in 2009, in an effort to:

i) simplify use of the system for new users, and encourage more use and moreefficient use of the system by all users; and

ii) improve the physical environment and commuting experience at stations.

Service design changes introduced in 2009 will also simplify the network by reduc-ing the number of schedule and route variations. The 2009 Usage and Attitude sur-vey will measure riders’ perception of the relative simplicity or complexity of theservice.



Develop social media

The internet has emerged in the past decade as the communication medium ofchoice for transit riders; this is clearly reflected in the usage rates at octranspo.com(Figure 1.3.2), a reduced demand for print and call-centre services, and a high satis-faction rating by octranspo.com users, 92 % of whom rated the site as either effec-tive or very effective.

Internet-based communication, however, is still in its infancy. Recent improvementsin the areas of high-speed access, wireless access, mobile devices, and the prolifera-tion of social media such as RSS feeds, mobile browsing, and e-mail alerts and blogs,are an opportunity for OC Transpo to continue to improve the convenience of tran-sit service for all riders. There is an intrinsic relationship between the characteristicsof internet social media, and the needs of transit riders, particularly the needs formobility, customization, and customer input.

In 2008, the octranspo.com web site is being migrated to a new web platform,allowing the development and provision of social media services and capabilities in2009. Internet communication channels, traffic levels and customer satisfaction rat-ings will continue to be measured through 2009.



2 M A R K E T D E F I N I T I O N

2.1 Transit usage

Figure 2.1 shows the distribution of travel mode choice across Ottawa in 2008. Intotal, 67% of travellers use a car as their primary travel mode, either as a driver or apassenger, and this segment of the population represents, in broadest terms, thepotential market for new transit customers. Many people in this 67% segment usetransit occasionally - once a week or less - but do not use transit to commute, sotransit is not their primary means of travel.

Commuting to and from work or school is the main reason people travel within thecity regardless of travel mode, and because of its high frequency, commuting choic-es ultimately influence important transportation commitments and decisions such asinvestment in a car, or in a second car, or in a transit pass; commuting options alsoinfluence geographic choice of residence. Once these major decisions are made byan individual or a family, the ability to influence or effect a change in modal choiceis reduced.

When an individual’s commuting circumstances change - either a new job or newresidence - they will typically re-assess transportation options, including choice oftravel mode.

Introduction and promotion of new transit services - such as new bus routes, sta-tions, or increased service levels - are important opportunities to attract new riders.Other variables such as cost, traffic congestion and concern for the environment alsopresent opportunities for people to reconsider their transportation options.

When considering options, it is the perceived convenience of transit, relative to a car,which most people say influences their decision. Convenience can be defined in



Primary means of transportation

Figure 2.1

OC Transpo Usage and Attitude Survey, April 2008

bike2%

walk5%

public transit26%

car67%

many ways, including travel time, speed, necessity of transfer, walking distance, fre-quency of service and waiting time.

After convenience and its related factors, affordability is the most compelling reasonfor using transit - mentioned by 32% of Ottawa residents.

2.2 Demographic change

Ottawa’s population is aging. By 2031, people aged 65 or older will make up 20%of the population, compared to just 12% in 2006.

Transit is currently over-represented by students and young people, who form a sig-nificant part of our customer-base, and is under-represented by seniors, who makeup only 10% of the customer-base.

Typically, student transit riders have rapidly converted to automobile use after theyenter the work force, and as their income increases. Student populations will contin-ue to be a significant captive ridership base in the future, and the challenge of retain-ing these riders as their commuting habits change, will also continue.

Meanwhile, the market segment for whom we provide the highest rate of subsidy(seniors) is expanding, which means that even if transit usage increases proportion-ally within this segment, revenues will decrease.

The conclusion drawn from predictions for demographic change in Ottawa, is thatthe best opportunity for real growth - that is, growth in per capita ridership and rev-



Allocation of population by age group,2006 to 2031

Figure 2.2

source: City of Ottawa Research and Forecasting

24% 22% 21% 20% 20% 20%

22% 22% 22% 21% 20% 19%

25% 23%22% 22% 23% 23%

18% 20%21% 20% 19% 19%

100% 100% 100% 100% 100% 100%

2006 2011 2016 2021 2026 2031

65 +

50-64

35-49

20-34

0-19

12% 13% 15% 16% 19% 20%

enue - lies in the middle, with commuters. Starting in 2008 and continuing for thenext 10 years and beyond, transit marketing strategies will pursue a larger share ofthe transportation market aged 20-64, in order to maintain current patterns of rid-ership and revenue growth.

2.3 Fare payment

OC Transpo customers can pay fare using cash, tickets, or period-passes:

In recent years, ticket usage has increased relative to pass usage. Tickets serve threeprimary purposes:

i) they make individual trip-payments affordable for economically disadvantagedriders, compared to cash

ii) they reduce the cost of processing and handling fare revenue, from boardingthrough to cash deposits.

iii) they provide a mechanism and incentive for ‘mid-frequency’ riders - (between1 and 8 trips a week) to commit to a certain level of transit use, even thougha period-pass may not be worthwhile. Effectively, tickets function as a short-term period-pass.

If a commuter rides the bus 20 days in a month, and pays with tickets, the price in2008 ($80) is almost the same as the price of an adult monthly pass ($81). Whereasin 2001, the price of a pass equated to only 17.5 days of ticket travel.



Ridership and reveue by method of fare payment,2007

Figure 2.3

Ridership (trips)

Passenger revenueMethod of payment(people)

adultstudentecopasscommunity passseniorsdaypassother passes

all passescash

tickets

76%3%

21%

66%7%

27%

37%13%

50%

26%23%14%1%2%1%

0.1%

22%31%13%2%5%1%2%

all p

asse

s

2.4 Off peak market potential

Shift workers, service-industry workers, students and seniors travel predominantlyduring off-peak times, when transit is less convenient due to low frequency of serv-ice, and when car travel is more convenient due to reduced traffic congestion.

In general, there is more unused capacity in the transit system during off-peak times,schedule-adherence is good, and riders can get a seat. On the other hand, service isless direct for many trips, so more transfers are required, and frequency is low, so rid-ers wait longer for transfers and arrivals.

Off-peak commuters can be attracted to transit by offering higher frequency serviceduring off-peak times.

The 20% of post-secondary students who do not use transit regularly can also ben-efit from higher off-peak service levels, for travel to recreational activities and part-time jobs.

The convenience of off-peak service influences the overall net value of transit forfamilies with one car, or with secondary school-aged children who may have part-time jobs.

Although ridership potential is high amongst seniors, and operating costs for off-peak travel are relatively low, the revenue potential from seniors is also low becauseof the high level of subsidization offered to these pass holders.



3 P R O D U C T D E F I N I T I O N

The strategy to attract people to transit is always based on increasing convenience,affordability, and comfort, including safety and ease-of-use. Marketing efforts in2009 will focus on positioning service products to meet these needs, and definingthe products in these terms.

3.1 Convenience

In 2009, the OC Transpo service plan calls for an increase of 5.0 percent in servicehours within the urban transit area, plus an additional 0.7 percent to cover potentialservice increases outside the UTA in Stittsville, and a one-time operational costincrease related to construction at St. Laurent Station. The total 5.7% increase doesnot include any service reductions which may be required as a result of low per-formance on some routes. The increase in hours accompanies the growth of the busfleet and is intended to both accommodate increasing transit ridership and improvethe convenience and reliability of transit service to attract new customers.

More than half of the 5.0 percent increase planned for 2009 is allocated to attractnew customers or promote increased use of the system by current customers.

Most people - frequent, infrequent, and non-transit users alike - define the relativeattractiveness of transit versus automobile in terms of convenience.



Why former transit riders stopped using transit

Figure 3.1


Transit is inconvenient

24%

Bought or began using a car

25%Moved12%

Poor service/reliability

12%

Changed jobs8%

Transit too expensive

1%

Other18%

Even when the word “convenience” is not used, preferences are often expressed interms of speed, transfer time, waiting time, and walking distance, which are alsomeasures of “convenience”. Arguably, “moved” or “changed jobs” may also havemeant that transit became inconvenient as a result of the move.

When we try to quantify convenience, we find that almost half of transit users (fre-quent and infrequent - 45 %) feel that waiting 6 to 10 minutes for a bus is accept-able. This equates to a 12-20 minute frequency of service, because, on average, pas-sengers would arrive at a boarding location 6-10 minutes, or less, before arrival.81% of transit users say they would use the bus more often if wait times werereduced to 5 minutes, which equates to a 10 minute frequency.

Amongst non-transit users, wait times are identified by 48% of survey respondentsas a reason to switch their travel mode to transit.

The 2009 transit service plan proposes significant service improvements to increaseridership on major routes at non-rush-hour times and away from the Transitway.Increases are proposed in the midday, evening, and on weekends on services such asRoutes 86, 101, 106, 118, so that those routes run at least every 15 minutes at mosttimes. The hours of service on Route 95, the spine of the entire transit system, areproposed to be increased to 24 hours a day, 7 days a week. And earlier service in themorning and later service at night is proposed to and from the airport on Route 97.These changes will encourage increased use of the entire transit system at all timesof the week, and will improve service for shift workers, service workers, students,shoppers, seniors, and visitors.

Transplan 2009 will also begin to identify opportunities to exchange low-revenuepremium services, for a high-frequency, regular fare commuter service which mayrequire a transfer. Where overall travel time and wait times are reduced, a reliabletransfer is not a barrier to commuting by transit.

3.2 Capacity and reliability

Of the planned 5% increase in 2009 service, more than a quarter is allocated toincrease capacity on routes on which ridership is growing, and approximately one-sixth is allocated to improve the reliability of service, in response to increasing traf-fic congestion and travel times on some city streets.

The capacity of service will be increased on busy routes to accommodate observedincreases in ridership. In the early part of the year, this will mean service increases onservices such as Routes 1, 7, 8, 24, 70, 86, 95, 96, 97, and 118. Additional capacitywill be provided starting in mid-2009 to the new RCMP headquarters in Barrhaven.



The routes on which service capacity will be increased in September 2009 will be iden-tified from passenger counts to be taken in the fall and winter of 2008-09.

New and increased service will be provided from the four new park and ride lotsunder construction, at Millennium, Chapel Hill, Leitrim, and Riverview. Three ofthese lots are at locations off the current rapid transit route network, and new routeswill be developed through the Transplan 2009 planning and consultation process.Construction at each of the four lots is expected to be complete for the first phaseof each of the lots to open in September 2009.

The Transplan 2009 planning and consultation process will also address possible serv-ice changes:

i) in Orleans, in response to continuing urban development; ii) in the Westboro and Carlingwood area, to be coordinated with the transporta-

tion management implementation plan approved by Council to be conductedstarting in 2008; and

iii) in other growing areas and other parts of the City where travel needs arechanging.

Bus travel through the central area, on Albert and Slater streets, is detrimental toservice reliability, commuting comfort, and operating cost. Street capacity restrictionsin the central area increase pressure to optimize vehicle capacity and cost-effective-ness for all peak-period travellers. Low-performing routes with unused capacity canbe replaced with a more reliable, quicker, more frequent, less expensive servicewhich may require a transfer, but will not discourage existing riders from using tran-sit. Transplan 2009 will consult with riders about these concepts.

Other initiatives to mitigate travel conditions in the central area include electronicbus arrival signs, improved boarding platforms, and improved streetscapes at wait-ing areas.

In addition to the 5% service increase identified above, the 2009 service plan alsoincludes an allowance for improved service from Stittsville, which will be the subjectof consultation this fall, and a one-time amount for additional operating costsrequired as part of an infrastructure rehabilitation project in 2009, at St. LaurentStation, to be funded from the project budget.

Fleet availability will be increased in 2009, providing a greater number of buses fromthe active fleet during weekday peak-periods, thereby improving service delivery andschedule reliability, and also supporting the 5% service increase without additionalbuses.



3.3 Affordability

After convenience, cost is the biggest consideration for people in their modal choiceassessment - and in Ottawa, most people recognize that transit is inexpensive:

In July 2008, transit fares were increased by an average of 7.5%, but the demandfor service and purchase of passes has not been noticeably affected. The high costof gasoline and other rising transportation costs have created a market where thereaction to transit price increases of this magnitude, is relatively inelastic.

Automobiles are an increasingly expensive luxury for those commuting to and fromwork. This is especially true if costs other than gasoline are considered such as insur-ance, parking, maintenance and repairs, and the rising cost of new vehicle financing.In 2008, many large North American car makers announced the discontinuation ofcar leasing options. This will inhibit many car buyers from obtaining no money down,low interest monthly car payments.

The current and increasing cost advantage of transit is an opportunity to adjust pricestructures and premium service offerings without discouraging existing riders.

Also in 2008, Council identified a probable 7.5% fare increase for both 2009 and2010. In 2009, this increase is the basis for forecasted revenues.



Why transit riders stopped using other modes of travel(percent of respondents; multiple reasons permitted)

Figure 3.3


9

1

1

1

1

2

3

3

3

4

4

13

14

14

14

14

32

38Transit more convenientTransit less expensive

Better for the environementNo access to a car

Parking not availableTransit is faster

Parking too expensiveTransit serves my area well

Transit suits my scheduleNo other choice

TrafficWeather

Feel safe on public tansitToo far to walk

Punctual & reliablePrice of gasLess stress

Other

3.4 Ease of use

Improved transitway wayfinding and mobile web services will be introduced in 2009,to simplify travel. Improved access to information provides riders with the flexibilityto travel more frequently, and also provides the ability to use the service more effi-ciently. This can result in faster travel times, reduced waiting, and ultimately, moreindependence and control over the whole travel experience.

The investment in transitway wayfinding is important mainly to new and infrequentusers, and by simplifying their initial experience with the system will help convertthose users to regular transit riders. Simplified, customized wayfinding also encour-ages all riders to confidently use the system for more than routine trips.

Mobile transit information services add a measure of convenience for all users, andalso facilitate navigation. Automated next stop announcements, e-mail alerts, andcell-phone access to automated travel planning services will all be offered in 2009,and will be featured in 2009 marketing campaigns.

Service design considerations such as the number of routes operating in one area,variations in schedules by day or by season, variations in routing, and route namingpractices, all contribute to the relative simplicity or complexity of the transit service.Although transit demand is not consistent at all times, and service must be adjustedto meet demand, operating efficiencies and refinements also are balanced againstthe advantage of making service consistent, understandable and predictable. InSeptember 2008, simplified and more direct transit routes were introduced in south-east Ottawa. In 2009, similar design improvements will be developed for theWestboro community.

Service levels have typically been adjusted 4 times per year to reflect changes indemand - in January, April, June and September. Even a small change in the servicelevel - as in April - ripples through the network and affects bus schedules on manytrips, including all express commuter trips. In 2009, the April service change will belimited to only those few routes which serve colleges and universities. Service levelson other routes will be maintained at their January levels, through until June, whenprimary and secondary schools are out. This approach will add only a few servicehours to the annual budget, but will eliminate one seasonal schedule change formost riders.



4 P R I C I N G

4.1 Fare level

Transit fare media pricing has historically been organized on the basis of:

i) rewarding and retaining more frequent and longer term users of transit; ii) recovering 50% of operating costs through the fare box;iii) responding to the needs of individuals who require economic assistance;iv) providing higher-priced premium services which offer reduced travel time or

fewer transfers.

By the end of 2007, average transit fare per ride was $ 1.30, and in July 2008 afterthe introduction of new transit fares, increased to $ 1.40 per ride. The average farepaid in Ottawa compares favourably to the average fare paid at cities across Canada.

The average operating cost of each ride provided by OC Transpo in 2008 is almost$3.00, and like all transportation costs in Ontario is rising - due mainly to the con-tinuing rise in transit fuel costs, but also due to increasing commute distances, traf-fic congestion, and labour and fleet costs.

The Ontario transportation price index (Figure 4.1.2) is comprised of costs associat-ed with the purchasing, leasing rental and operations of both public and privatevehicles. Transportation costs are rising in the transit sector, which increases the pres-sure on fares, but are also rising in other transportation sectors, which increases theattractiveness of transit.



Average fare paid at Canadian cities,2007

Figure 4.1.1

source: Canadian Urban Transit Association

$0.50 $1.00 $1.50

$1.30

$2.00

Vancouver

Montreal

Hamilton

Gatineau

Ottawa

Winnipeg

Calgary

Toronto

Edmonton

To maintain a desirable revenue cost ratio approaching 50%, it is necessary that tran-sit fares also continue to increase.

In 2008 Ottawa City Council anticipated that an average 7.5% fare increase wouldbe required in 2008, 2009 and 2010; this requirement is confirmed by the analysisand pricing strategy developed to support the 2009 marketing plan. The 7.5% fareincrease in July 2008 did not discourage many people from using transit; transitprice-sensitivity in the current marketplace is relatively low, especially within thelarge commuter segments.

If fares are increased by 7.5% in 2009, it is expected that the net ridership increasefor the year will be 5.1% greater than in 2008, taking into account both the demandelasticity resulting from the fare increase and the planned additional hours of serv-ice. After July 1, 2009, the average fare collected per ride will be $1.51, contribut-ing to an overall 2009 revenue:cost ratio of 49.8 %.

Figure 4.1.3 shows the new prices for transit passes to be recommended for intro-duction July 1, 2009. The relative distribution of prices across the many categoriesof passes is designed to generate the highest possible revenue, without discouragingprice-sensitive riders.



Change in fares, inflation, and personal transportation costs,2002 to 2007

Figure 4.1.2

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

cumulative percentage increase

2001 2002 2003 2004 2005 2006 2007

Average transit fare, Ottawa

Consumer price index, Ottawa

Personal transportation costs, (CPI)Ontario

In January 2009, ticket prices should be adjusted from $1.00 to $1.15. Cash faresshould not be increased at any point in 2009. Figure 4.1.4 shows the resulting cashand ticket fares to be paid in each ride category.



Figure 4.1.4

Ticket and cash prices,January 2009 July 1,

2008January 1, 2009

Percentage increase

2.25

3.004.005.001.50

2.003.004.001.00

$

$$$$

$$$$

$

$$$$

$$$$

2.50

3.004.005.001.50

2.303.454.601.15

11.11%

0.00%0.00%0.00%0.00%

15.00%15.00%15.00%15.00%

O-Train ticket

Adult cashExpress cashRural cashChild cash

Adult ticketExpress ticketRural ticketChild ticket

Figure 4.1.3

Pass prices,July 2009

July 1, 2008

July 1, 2009

Percentage increase

$7.25 (on the bus) $6.50 (pre-purchased)

84.75106.00131.75895.00

1119.00

65.2576.50

103.00242.00283.50626.40734.40

31.75335.25

30.40

7.00cancelled -

74.5893.28

115.94

4.6 %5.0 %4.6 %2.3 %2.6 %

4.6 %4.2 %4.3 %4.2 %4.3 %4.2 %4.2 %

4.4 %- 8.1 %

0.0 %

- 3.4 %

7.1 %7.4 %7.0 %

Adult Regular PassAdult Express Pass Adult Rural PassAdult Annual Regular PassAdult Annual Express Pass

Student RegularStudent ExpressStudent RuralStudent Regular SemesterStudent Express SemesterStudent Annual RegularStudent Annual Express

Senior PassAnnual Senior PassCommunity Pass

DayPass

EcopassEcopass ExpressEcopass Rural

81.00$$$$$

$$$$$$$

$$$

$$$

$$$$$

$$$$$$$

$$$

$$$

$

101.00126.00874.80

1090.80

62.6573.4098.75

232.25271.90601.44704.64

30.40364.80

30.40

69.6686.86

108.36

4.2 Tickets

Since 2001, ticket prices have increased at a lower rate than pass prices, with theresult that monthly passes are an increasingly less attractive option compared to tick-ets. Figure 4.2.1 shows how, by 2008, 20 days of ticket use in a month cost aboutthe same as a monthly pass - and for commuters facing an average 21 work dayseach month, pass purchase and ticket purchase are roughly equivalent.

To keep pace with an average 7.5% higher price, tickets must be priced at $1.08,which, to simplify sales transactions, would result in a $1.10 purchase price.However, to restore the attractiveness of monthly pass purchase, tickets shouldincrease by more than passes - hence the recommended $1.15 price.

In 2008, it is evident that current low ticket prices are eroding pass purchases. Thiseffect is undermining the strategy that converts infrequent and moderate frequencyriders, into committed transit users who are willing to purchase a photo ID andmonthly pass.

When ticket pricing has the effect of drawing down pass purchases, previously committedtransit riders move onto a less firm transit footing, and are more likely to reduce their tran-sit use, either through occasional exposure to alternate means of travel, or through con-sideration of the fact that they are paying for each ride and want to economize, or both.



Figure 4.2.1

Ticket value in round trips, compared to monthly pass price,2000-2009

16.0

16.5

17.0

17.5

18.0

18.5

19.0

19.5

20.0

20.5

Equi

vale

nt n

umbe

r of

rou

nd t

rips

Regular adult pass price / month58.50$ 59.50$ 60.50$ 61.75$ 63.00$ 65.00$ 71.25$ 73.00$ 81.00$ 81.00$ 84.75$

Regular ticket fare / trip1.60$ 1.70$ 1.70$ 1.70$ 1.80$ 1.85$ 1.90$ 1.90$ 2.00$ 2.30$ 2.30$

2000

2000

2001 2002 2003 2004 2005 2006 2007 2008 2009jan-jun

2009jul-dec

2001 2002 2003 2004 2005 2006 2007 20082009

jan-jun2009

jul-dec

Tickets have no expiry date, so rides not taken in a particular month are equivalentto lost revenue. Passes, however, are fully paid in advance, and like any subscriptionprogram reward both the user - by offering more service at no additional cost - andthe provider, by securing a minimum level of revenue.

Given the current high demand for transit, the competitive price advantage overcars, and the necessity of restoring a preference for transit passes, the recommend-ed ticket price change should occur as soon as possible - on January 1, 2009.

A January 1st implementation date will also have the effect of attaining a portion offorecasted 2009 revenues prior to the July 1st pass price increase, and thereby min-imizing the negative impact on ridership resulting from the July 1st increase.

For adult riders, OC Transpo tickets are priced at 67% of the corresponding cashfare; across Canada, on average, this ratio is closer to 78%. The Canadian UrbanTransit Association (CUTA) reports that in Winnipeg, for example, tickets are pricedat 87% of cash fares; this compares to 84% in Calgary, 82% in Toronto and 73% inMontreal. At $1.15 each, and with no change in cash fares, OC Transpo ticket priceswill be 77% of the adult cash fare.

At $2.30 per trip, adult ticket prices will be closer to the STO ticket price in Gatineau,which is $2.70. OC Transpo express ticket fares - at $3.45 - would be 25 cents high-er than the express fare charged by STO. This adjustment to OC Transpo ticket pric-ing provides for better parity in fares between STO and OC Transpo.

OC Transpo ticket vendors, paid a 1% commission on ticket sales, will benefit froma slight increase in revenue beginning January 1, 2009, partly compensating for



Figure 4.2.2

Fare revenue from tickets, compared to adult regular passes,2004-2007

Ann

ual s

ales

rev

enue

($

mill

ions

)

$0

$5

$10

$15

$20

$25

$30

$35

$40

2004 2005 2006 2007

Tickets

Adult Regular Passes

reduced fare media sales in recent years, lost to increases in demand for EcoPass,annual, community and semester passes.

4.3 Student eligibility

In Ottawa, OC Transpo does not limit the age of students entitled to receive dis-counted transit fares. The STO in Gatineau, on the other hand, limits student eligibil-ity at 21 years of age, as does Winnipeg transit. In Toronto, transit fare discounts arenot offered to post-secondary students, so the effective age limit is less than 20 years.

Figure 4.3.1 shows full time student enrollment by age at the universities of Carletonand Ottawa, and Algonquin College.

If Ottawa was to cap eligibility for full time student transit fares at 21 years of age,it is estimated transit revenue would increase by approximately one million dollarsannually. However, 49% of Ottawa’s 60,000 post-secondary students would beaffected, and would no longer be eligible for a discount.

In order to more appropriately align the eligibility of concession fares for full timestudents, it is proposed that eligibility in 2009 be capped at 24 years of age, effec-tive with the 2009-2010 school year. This action will increase transit fare revenue byapproximately $350,000, annually, and by $175,000 in 2009.

Figure 4.3.2 shows that income is low for young people, including students, and therequirement for subsidization is presumably higher. The need for fare concessions isconsiderably less for people over the age of 24.



Figure 4.3.1

University and college enrollment by age,2007-2008

Full-time enrollment in 2007/2008

Students aged 21 or older Students aged 25 or older

Number% of enrollment

University of Ottawa 55% 6,331 22%Carleton University 40% 3,327 18%Algonquin College 50% 2,702 21%

Total 49% 12,360 20%

28,92918,85213,200

60,981

15,7857,4646,586

29,835

Number% of enrollment

4.4 Upass

For several years, universities and colleges in Ottawa have discussed the introductionof a Universal Transit Pass (UPass) with OC Transpo. The UPass would be mandato-ry for all full-time post-secondary students, and be paid at the time they pay theirtuition. To offer such a program without reducing net transit revenue, in 2008/2009the monthly pass price would have to be $50 per full time student.

Many students in Ottawa reside in Gatineau; any UPass offer must necessarily bedeveloped in conjunction with the STO. Based on market research conducted to dateand discussions with STO, this monthly pass price would be acceptable to STO.



Figure 4.3.2

source: 2001 Census

Income distribution by age of household maintainer,Ottawa

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

under 25 25-44 45-64 65+

Age of Household Maintainer

Perc

enta

ge

of

Ott

awa

po

pu

lati

on

Low IncomeMiddle IncomeHigh Income

College and university student transit usage in Ottawa

Figure 2.4

source: 2003-4 surveys, Ottawa Transit Services Branch

University of OttawaCarleton UniversityAlgonquin CollegeCité collegiale

58% 81%60% 84%52% 73%39% 66%

Full-time students using transit as primary travel mode to/from campus

Full-time students using transit once a week or more for any travel purpose

While the monthly price of $50 is much lower than the current regular monthly stu-dent pass price of $ 62.65, student leaders have felt that a mandatory transit passpurchase is not desirable. Currently transit use is very high among Ottawa studentsattending universities and colleges, as shown in Figure 4.4. The introduction of stu-dent semester and annual passes has also provided students with significant dis-counts - 10% and 12% respectively.

If a UPass were to result in increased ridership, additional budget would be requiredto meet the demand for service.

4.5 Concession fares

In recent years, ridership has grown more rapidly within the market segments usingdiscounted and concession fares, than it has in segments paying full fare. Just over38% of transit rides taken in 2007 were paid at a concession rate, with an averagefare paid of less than $1 per ride. This includes seniors, students and community passusers. In total, these riders contributed approximately 25% of 2007 fare revenues.As with tickets, concession fare prices have not increased at the same rate as annu-al passes (Figure 4.5).

Students and community pass holders are the most price-sensitive transit consumers,and 2009 fare increases for these markets are planned at a lower rate than the aver-



Figure 4.5

Cumulative fare increase for concession and discount media,compared to adult regular passes,2006-2008

0%

4%

8%

12%

16%

20%

24%

2006 2007 2008 2009

Senior

Community Pass

Pass

Student Regular Pass

Adult Regular Pass

Regular Ticket Price

Perc

enta

ge

incr

ease

ove

r 2006

age 7.5% increase, to reduce the risk of losing ridership, and to respect the fact thatpeople in these markets have lower income.

Concession fares that do not involve transit price discounting are also offered, in theform of free tickets provided by OC Transpo to the City's Employment and FinancialAssistance Branch, amounting to 27,000 tickets a month or $324,000 in 2008.

4.6 Seniors

The July 1 2009 monthly pass price for seniors will be increased at the same rate asother adult monthly passes. Relative to other market segments, the seniors discountfor monthly passes, at 67%, is as great as the Community pass. Seniors’ relativehousehold incomes are higher than students, and seniors also can take advantage ofan additional 12% discount by purchasing an Annual Seniors Pass.

In 2007, the Senior’s Summer Special was introduced, offering free bus service toseniors on Wednesdays, in July and August. In 2008, this program was expanded toinclude Wednesdays in June. Reception in both years was very positive, with numer-ous testimonials about the effectiveness of the program in increasing the mobility ofpeople who are frequently isolated withing the community, and are not recentlyaccustomed to taking transit.

In both summer programs, the free service on Wednesdays did not reduce thedemand for monthly seniors passes. Numerous other social and recreational pro-grams for seniors also are scheduled on Wednesdays.

In 2009, the Marketing Plan calls for an expansion of this program to run year-round, with seniors allowed to ride for free on every Wednesday. This will providean uninterrupted opportunity to promote and coordinate transit-incentive programsfor seniors, and also will facilitate the operation of other seniors-oriented programsthroughout the year. If conventional transit is successfully positioned as an intrinsicpart of daily life for seniors, the demand for ParaTranspo service will also be reduced.

4.7 Ecopass

Ecopass subscribers receive a discount on their monthly pass purchase. In December2007, a motion by City Council was approved to set the Ecopass discount at 14%on July 1, 2008, 13% on July 1, 2009 and 12% effective July 1, 2010. At the sametime, the discount on annual passes would increase from 10% in 2008, to 11% in2009 and 12% in 2010. Thus at about the time smartcards become available, alllong-term pass subscriptions would have an equivalent discount, and the distinctionbetween Ecopass and annual pass purchase would simply be a preference formethod of payment.



The 2009 OC Transpo Marketing Plan includes a price structure which sets theEcopass discount at 12%, effective July 1, 2009, and similarly applies a 12% dis-count to all other adult and senior annual passes on July 1, 2009.

This action will:

i) still maintain a reasonable price benefit for these passes;ii) recover the increasing cost of administration brought about by rapid growth in

Ecopass;iii) align the Ecopass discount closer to the STO’s current discount of 10%;iv) reduce the proportion of the overall 7.5% fare increase to be borne by other

riders;v) not significantly reduce the demand for Ecopass subscriptions;vi) assign a greater proportion of increasing Express bus operating costs to Express

bus users.

At the end of August 2008, there were 23,364 subscribers in the EcoPass program,65% of whom were federal government employees. The EcoPass program current-ly provides over $ 22 million in annual revenue.

Two programs are required to manage federal government and private sectorEcoPass participants, which, with rapid program expansion in the past two years,adds to administrative costs.

4.8 Daypass

Daypass advance-sale vouchers have been available for sale for almost 10 years at OCTranspo authorized vendors or sales offices. OC Transpo buses also provide Daypasstransfers, in exchange for cash payment made on the bus or deposit of the Daypassvoucher. Vouchers have been priced 75 cents lower than the on bus purchase - whichis currently $ 7.25. This difference was intended to encourage development of a mar-ket for day passes that was similar to tickets, but there has been limited uptake.

On Sundays and stat holidays, Daypasses are eligible to be used as a Family Pass.

In 2009, the Marketing Plan calls for discontinuation of the advance-sale vouchersin favour of a reduced on-bus price of $ 7.00. It is expected that this action willincrease revenue as well as lower cost.

Also, to support the planned additional Saturday bus service on weekends, it is rec-ommended that a Family Daypass be made available on Saturdays, as well asSundays and holidays. This new marketing feature will not only encourage transit useon weekends, thereby increasing ridership, but it will benefit retailers and eventorganizers who will be in a better position to promote transit use.


1 4 O c t o b e r 2 0 0 8 , T r a n s i t S e r v i c e s B r a n c h P a g e 4 - 1 0

5 C O M M U N I C AT I O N S T R AT E G Y

Communication efforts supporting the marketing plan are either:

i) part of a targeted marketing campaign that connects a specific, narrow marketsegment with a specific product offering; or

ii) part of a social marketing campaign that influences brand quality, image andreputation.

Most campaigns contain elements of both: for example, an event staged at theopening of a new park & ride lot will be targeted towards a specific subset of com-muters in the vicinity of the lot. Media coverage of the event, however, might talkabout the place of that lot within the City’s broader transportation plan, or about thecomfort provided by security features at all park & ride lots.

In both cases, regular ‘commuters’ - whether commuting to work or school or otherregular daily activity - are the primary and most sought-after market segment. Oncecommitted to transit travel, commuters contribute to sustainable growth in a travelroutine which can potentially last for decades.

Targeted campaigns

Each new station, park & ride lot, rapid transit route, schedule increase or informa-tion service planned for 2009 is an opportunity to promote transit to potential newriders, or promote better service to existing riders.

Decisions about the relative convenience or inconvenience of transit are partly basedon very specific, individualized travel options - for example, specific walking dis-tances and conditions, particular departure and arrival times, travel times comparedto a specific car trip, individual parking options, comfort levels on the bus or at atransfer location - and so on.

Informed decisions about the convenience of transit require access to this individu-alized level of information. This requirement tends to run contrary to the massiveamounts of routing and schedule information which are published to riders andprospective riders.

A successful transit promotional campaign must therefore be targeted in a way thatconnects a specific, narrow market segment with a specific product offering: forexample, employees at the General Hospital campus, connected with high-frequen-cy off-peak service to the new Millennium Park & Ride lot in Orleans. Targeted mar-keting of transit services is effective because it offers customization to the individ-ual’s level - simple points of access to the service which eliminate the complexity anduncertainty of a large system.



Incentives such as coupons or prizes will be offered to encourage trial use of theservice. A targeted incentive is generally followed by a targeted sales offer. Forinstance, a smartcard or Ecopass sales promotion and registration at the GeneralHospital would logically follow an incentive campaign in the example above.

Social campaigns

Higher-level social marketing initiatives are a necessary and effective strategy forsupporting and encouraging decisions to try transit. Brand quality and reputationgreatly influence consumers’ decisions, through their view of the credibility of ourservice offers, their level of trust and confidence in our ability to perform, andthrough the degree of control and influence they feel they will retain over their trav-el experience.

Many social marketing messages can be delivered indirectly through the quality andstyle of the media we develop in support of our Targeted campaigns. The style andperceived status of transit within the community can be influenced simply by thedesign and media choices developed around routine communications.

Other messages - for example safety and security awareness - must be supportedthrough active and explicit communication campaigns which are expressed acrossthe entire brand.

5.1 2008 Service improvements

Transplan 2008 introduced new bus service in south-east Ottawa that is designed tobe simpler and more reliable than the bus routes that operated previously. Marketingand communication efforts have concentrated on reaching commuters with the mes-sage that high-frequency, direct rapid transit service is now available.

In September 2008, major cross-town bus routes 84, 85 and 111, each comprised ofseveral distinct branches and sections, were split apart to form 7 shorter, distinct busroutes, each assigned to a separate service branch or community. The Elmvale, AltaVista and Greenboro communities all benefited from a simplified service design,which provides each specific location with higher-frequency service on fewer num-bered routes. Two of the new routes - 98 and 106 - were created as part of the corerapid transit network. All travel corridors affected by these changes are now servedby shorter bus routes, which will improve service reliability and schedule adherence.

The new 2008 service was promoted through many OC Transpo communicationchannels: i.e., web pages, web-links from employer web sites, radio ads, pamphletson buses, posters, maps and pamphlets distributed at work-sites, and notices andposters at on-street locations. Existing riders were reached through these media and



the presence of customer service personnel and customized signage at Hurdman andSt. Laurent Transitway stations.

Follow up information sessions at the hospital complex on Smyth Road will be organ-ized in early November, 2008, in a continuing effort to reach potential off-peak com-muters now served by high frequency rapid transit route 106.

In January 2009, similar changes to routes 2 and 3 will result in four shorter, morereliable routes, addressing some long-standing schedule adherence problems onthese routes.

5.2 Safety and security

A Transport Canada program initiated in 2007 has provided funding to OC Transpoand STO for a major communication campaign on the theme of transit security,designed particularly to:

i) raise awareness of safety and security measures already in place;ii) reassure travellers that ample support is provided by personnel from all pro-

tective service agencies, including both transit agencies, police, medical andpara-medical services; and

iii) raise awareness of potential security risks when travelling in public transit.

The communication program will be launched in January 2009, featuring on-busposters, radio and newspaper ads, and on-street posters. Community surveys willmeasure awareness and comfort levels before and after the campaign.

5.3 Customer appreciation

December 2008 marks the 25th anniversary of the Transitway: operations began atfive stations and two Transitway links on December 11, 1983.

An anniversary program will begin in October 2008, featuring public contests, tree-planting ceremonies, speaking events, commemorative souvenirs and publications, apainted bus, employee recognition, and media features focused on stories of human-interest and personal history.

Five customer appreciation events will be held at selected stations during the weekof October 27th, featuring giveaways, prizes, customer feedback opportunities.

Messages and themes are: retrospective, success, innovation, foundation for future.



5.4 Transitway signage

Wayfinding and identification signs in Transitway stations are being redesigned toreflect a new navigational model for rapid transit services. The current black-and-white design will be replaced by a system which makes greater use of colour; phys-ical sign manufacturing processes will change as a consequence.

A capital budget request has been submitted to complete 10 large and 5 small sta-tions in 2009. Design decisions in Q1 2009 will be followed by a tendering processfor manufacture and installation later in the year. Substantial changes will be in placeby September 2009, and new stations and Park & Ride lots completed in 2009 willalso incorporate the new sign systems.

Transitway identity is not confined to stations and dedicated roadways: manyTransitway ‘routes’ also provide service along bus lanes and on some major arterialstreets. Bus stops and shelters will be modified at these locations to reflect the pres-ence of rapid-transit service.

5.5 Web services

In November 2008, the octranspo.com website will be reconstructed on a new plat-form which, in addition to offering a new design and focus, will offer new servicesand functionality:

i) advances in mobile computing will improve access to information for cus-tomers in transit, and will initiate the creation of a mobile ‘community’ shar-ing common transit interests and common technology, such as text-messag-ing.

ii) website users will be able to customize the content they see on the site - forexample recalling only the routes and stops situated in a specific geographicalarea of interest - and thereby avoid the vast amounts of transit information notrelevant to the way they use the service.

iii) web-notifications such as e-mail alerts and RSS subscriptions will let ridersreceive transit service updates at the e-mail or text account of their choice,without having to actively surf the site.

iv) interactive forums, faq lists and blog entries will improve the current methodsfor capturing and responding to customer feedback.

Overall, as these new capabilities are developed through 2009, the site will becomemore community-oriented, with active links to other sites, events and activities inOttawa.



5.6 Park & Ride

Four new park & ride lots opening in 2009 provide new travel options for residentsin the south and east. Commuters travelling to downtown Ottawa, Gatineau andTunney’s Pasture who need the convenience of their car for part of their commute -eg., shopping, or picking up children at school - nevertheless may be attracted to aconvenient, affordable bus trip for the other part of their commute.

Communications will consist of: local newspaper ads, roadside signs, opening eventpublicity, a radio promo featuring opening day giveaways, direct mail and householddistribution of information and incentive coupons. Workplace messages will also bedistributed through posters and web links at federal government locations and othermajor central area employers.

Messages will be directed towards commuters, and in addition to the travel conven-ience and affordability of transit, will emphasize personal and property security at thelots, and convenient association with commercial partners in the vicinity of the lots.

Timing will coincide with service availability at the lots - i.e., the fall of 2009.

5.7 Environment

Each year, OC Transpo participates in many environmental-oriented campaigns,events, and programs, such as Environment Week, Clean Air Day, and Car Free Day.In the past year, new programs have arisen in Ottawa, as many organizations andcompanies develop new ‘green’ initiatives. Transit is always a welcome participant inthese events, and it is important to reinforce the social and environmental benefitsof public transit when opportunities present themselves.

In 2009, new initiatives include the Green Rewards points program, Vrtucar, and theacquisition of Hybrid diesel-electric buses.

Partnerships involving Green Rewards and Vrtucar are beneficial business alliancesfor OC Transpo because they offer discounts or rewards to OC Transpo customers,reinforcing the decision to use transit, and contributing to the development of a val-ued transit community.

OC Transpo will be a redeemer for Green Rewards, meaning that as points are accu-mulated through the Green Rewards Program, they can be used to buy OC Transpofare media. A second, future stage of this program will be to allow riders to accu-mulate Green Rewards points through their purchase of OC Transpo fare media. Thiswill especially be a possibility with the introduction of transit smartcards.



Vrtucar is another alliance that will enable OC Transpo Annual Pass holders andEcopass subscribers to enroll in Vrtucar membership without providing the standard$ 500 deposit. Vrtucar complements public transit by providing another alternativeto car ownership. Approximately 50 Vrtucars are now available within the City ofOttawa. OC Transpo’s affiliation with the program will also generate incrementalrevenue to transit.

A media launch of two trial hybrid buses will occur in October 2008, in preparationfor 95 additional vehicles in mid-2009.

Each of these new programs provides it’s own messages, incentives, and benefits,but also is an opportunity to remind people about the significant existing environ-mental benefits of any degree of public transit.

5.8 Cleanliness

Cleanliness of the travel environment contributes to people’s overall comfort level,as well as their perception of the quality of our service. These perceptions areextended to any other aspect of service delivery, including reliability and conven-ience.

A pilot program has been developed in 2008 to reduce the amount of newspaper lit-ter on buses and at transit stations. Recycling containers will be provided at majorstations, and an additional clean-up on buses will be scheduled at the conclusion ofthe morning peak-period.

Metro and 24 Hours have both contributed towards the cost of the recycling program,and have indicated that they will dedicate space in their publications to promote recy-cling. The OC Transpo marketing group will develop a campaign and messages, andwill produce other materials - eg., signs or posters - to promote the program.

The results of the pilot will be evaluated in the Spring of 2009.

5.9 Events & community development

Transit’s relationship with community events and programs influences people’sunderstanding and perception of the necessity of OC Transpo in the provision ofmobility, and also of the role OC Transpo plays as part of the community fabric. Themarketing strategy in developing these relationships is to always attempt to defineor position OC Transpo as “part of the destination”, whenever people consider trav-elling in the city.

Strong partnerships and associations exist with festivals, sporting events and per-



formance venues - eg., Scotiabank Place, the Senators, Lansdowne Park, the Ottawa67’s, the NAC, the NCC, Canada Day, Winterlude, Jazz Festival, Blues Festival, FolkFestival, and Tulip Festival. Requirements to provide service each year are an oppor-tunity to reinforce OC Transpo’s role and contribution, and also to introduce non-rid-ers to transit in a context where it is relatively easy for us to deliver a positive travelexperience. Parking challenges, costs, anxiety about unfamiliar travel, comfort andsafety can all be addressed in a positive context which, potentially, opens the doorto securing more regular transit travel.

The octranspo.com redevelopment will concentrate in 2009 on positioning the web-site as a portal or contact centre for numerous activities and events within the com-munity, starting with the familiar large-scale events, but also extending to contactsand relationships at the neighbourhood level.

Staff will continue to participate in community outreach programs including infor-mation and customer service booths at community events and venues, and also ourproactive ‘school program’ where security and customer relations staff promote tran-sit and educate young riders about the service.

OC Transpo’s Travel Training program provided individualized travel training to morethan 2,000 new riders in 2008, building a strong and positive relationship with thedisabled community in Ottawa, removing pressure from Para Transpo, and improv-ing mobility and quality of life for many individuals. The benefits of this programaccrue to OC Transpo’s image and reputation.

5.10 Bayshore station

In late 2009, construction will be completed on a major expansion of BayshoreStation and the station’s integration with a new Transitway link from Pinecrest toHolly Acres Road.

Kanata commuters taking transit to destinations east of Bayshore, including down-town, will benefit from shorter travel times and less traffic congestion. Kanata resi-dents whose destination is in the vicinity of Bayshore, will benefit from a much high-er frequency of service for return trips from Bayshore to Kanata. All Kanata-boundriders will benefit from a more direct, quicker trip on Transitway Route 96.

Communication efforts will be concentrated in local Kanata media, including com-munity newspapers, as well as at Bayshore Shopping Centre. A station opening eventwill be developed in partnership with the shopping mall management.

The double decker buses that will operate on some Kanata express routes will be fea-tured in the commuter promotional campaign.



5.11 Transplan 2009

Route and service changes in 2009 will be planned for areas in eastern Orleans,Westboro, and the vicinity of four new Park & Ride lots. Public consultation willbegin in the early winter, 2009, culminating with new route implementation inSeptember, or as construction concludes in the fall.

Principle objectives will be to streamline and simplify services in the same manner asoccurred in 2008 in south-east Ottawa.

Planners will also investigate the possible consolidation of some express service inOrleans. Street capacity limits in the central area continuously increase pressure tooptimize vehicle capacity. Low-performing routes with unused capacity can bereplaced with a more reliable, quicker, more frequent, less expensive service whichmay require a transfer, but will not discourage existing riders from using transit.Consideration is given to overall travel time, including walking, waiting, riding andtransferring, as well as to reliability, which riders factor into each component of theoverall travel time.

5.12 RCMP

In mid-2009, employees at RCMP headquarters on the Vanier Parkway will be relo-cated to a new facility in Barrhaven, at the former site of JDS-Uniphase. New busroutes will be introduced to provide direct links from employee residential commu-nities in Orleans and Gatineau to the new Barrhaven location.

A high proportion of employees at the current location are transit riders, and a majorinterruption to their commuting routine such as this move, does present a risk thatwe will lose these people as transit customers.

Information and incentives will be offered to transit riders through their employerand on site at the current location. Website links will be created, if possible throughthe RCMP employee intranet, and the OC Transpo online travel planner will be cus-tomized to feature the new RCMP destination.

5.13 Off peak service

Targeted promotional campaigns in 2009 will be conducted through employmentcentres in health care - i.e., at the Civic, General, Riverside, and Children’s hospitalcampuses, all of which have benefitted from recent improvements in off-peak serv-ice, or will benefit from improvements as part of the 2009 service investment.

Employees at Ottawa International Airport will also be reached through a Targeted



campaign to be conducted in the fall, in conjunction with service-level improvementsplanned for route 97.

Post-secondary students will see a campaign which highlights improved mobileaccess to travel information, combined with improved off-peak and all-night transitservice. Campus publications and posters and the internet will be the primary com-munication media

5.14 Affordability

An exterior-bus and street-poster campaign will direct high-level messages about theaffordability of transit, to car drivers. High gas prices, low transit prices, and theavailability of the transit income-tax credit will be featured messages.

Advertising contracts with Clear Channel and Pattison provide free access to promi-nent exterior locations, and a cost-effective method for delivering high-level mes-sages to car drivers.

Billboard displays are also an effective way to reach the same audience, and will beexplored as an option in this campaign.

Cross-messaging potential also exists in conjunction with the Bayshore station open-ing. The effectiveness of a message about the affordability of transit is increased if itcan be delivered in a context where car drivers also experience traffic congestion.

5.15 Priority seating

The provision of priority seating areas on buses arose in 2008 as an issue and poten-tial barrier to attracting seniors to transit.

Policies and procedures around the definition and communication of this service arecurrently under review by transit operational staff. Recommendations for improvingor possibly expanding the service are expected, and will be developed as part of acommunication effort to attract and reassure seniors about the comfort and safetyof OC Transpo travel.

Communication will be coordinated with any changes resulting from the proposal toextend the campaign which offers free Wednesday bus service for seniors.

5.16 Consolidated point of contact

Telephone access to staffed and automated transit services are available through manydifferent public phone numbers: 560-1000 for IVR service, 741-4390 for information,842-3600 for customer service, plus different numbers for security, administration,



accessible services, as well as Para Transpo information, registration, and booking.

Some or all of these services should be available through a single telephone point of con-tact, without the necessity of manually transferring callers from one service area to anoth-er. In 2009, technical options for consolidating telephone services will be investigated.

Any consolidation which can occur on the existing telephony base will result in ahigher, more responsive level of customer service in 2009. Any system changesrequired will be indentifed for further consolidaton in 2010.

5.17 Automated next stop announcements

OC Transpo’s policy requiring bus operators to call out major approaching bus stopshas been the focus of considerable effort and assessment in 2008. Customers haveresponded positively to the initiative, and have expressed appreciation for theimproved service level resulting from the effort.

In 2009, procurement of an automated announcement service will conclude, andautomated systems will be installed on the fleet. This will result in a more consistent,fully bilingual, more reliable service which announces all approaching bus stops on aroute. Visually impaired customers will have significant, direct benefit from the serv-ice, but new customers or customers travelling to new destinations will also experi-ence a higher level of comfort and less uncertainty about the service.

5.18 Online trip planner integration with STO

OC Transpo’s automated trip planner has been available since August 2004 onoctranspo.com, and is used by approximately 12,000 people each day. In 2009, STOin Gatineau will also offer an online trip planner, in a format which can be integrat-ed with OC Transpo’s. Customers will be able to use either website to plan a contin-uous trip using buses from both transit companies. This single point of service willalso be available to agents working in each transit call centre, simplifying access totransit for riders from both cities.

5.19 Christmas food drive - 25th year

OC Transpo’s annual Christmas food drive is one of the year’s biggest events for theOttawa Food Bank. In addition to supporting the food bank, this event reinforces thepositive and integral role OC Transpo has within the community, builds staff morale,and generates goodwill amongst riders.

In 2009, the 25th anniversary of the food drive will be recognized and promoted,celebrating the important contribution of this event and, hopefully, setting newrecords for food donations.


1 4 O c t o b e r 2 0 0 8 , T r a n s i t S e r v i c e s B r a n c h P a g e 5 - 1 0

6 S A L E S TA R G E T S

6.1 Fare products

Based on the pricing, service design and marketing strategies outlined above, rider-ship and revenue targets for 2009 are forecast as follows:

6.2 Average price

In 2008, the average fare paid by OC Transpo customers will be $1.41 per ride,which is average compared to all other Canadian cities of a similar or larger size.


1 4 O c t o b e r 2 0 0 8 , T r a n s i t S e r v i c e s B r a n c h P a g e 6 . 1

Figure 6.1

Annual revenue and ridership targets by fare type,2009

Fare Type 2009 Reven($ millions) (millions of trips)

ue Target 2009 Ridership Target

Adult Regular Monthly Pass 27.681$ 17.946

Adult Express Monthly Pass 7.893$ 3.715

Student Regular Monthly Pass 22.880$ 22.109

Student Express Monthly Pass 1.625$ 1.311

Senior Monthly Pass 3.161$ 4.629

Adult Rural Monthly Pass 0.633$ 0.238

Student Rural Monthly Pass 0.079$ 0.049

Ecopass 25.773$ 16.077

Annual Student Regular Pass 2.615$ 3.035

Annual Student Express Pass 0.421$ 0.435

Annual Adult Regular Pass 0.636$ 0.423

Annual Adult Express Pass 0.152$ 0.075

Semester Pass Regular 4.308$ 4.190

Semester Pass Express 0.747$ 0.646

Community Pass 1.772$ 2.592

Annual Senior Pass 0.021$ 0.033

All Cash Fares 9.944$ 3.596

All Ticket Fares 43.565$ 21.153

O-Train Ticket 0.458$ 0.192

DayPass 0.861$ 0.804

Other 0.071$ 1.627

Total 155.297$ 104.876

Note: Other' transit customers include: Canada Post Letter Carriers, OC Transpo

Employees, OC Transpo Retirees, Police Officers, and CNIB Customers.

Compared to national inflation rates and province-wide transportation costs, theaverage fare collected has been losing ground since 2001.

In 2009, the average fare is projected to be $1.51 per ride, based on the pricing andmarketing strategies outlined in the 2009 Marketing Plan.

6.3 Other revenue sources

Sources of transit revenue other than the fares are expected to generate $4.3 millionin 2008. The 2009 targets for these other sources are as follows:

Business programs supporting and generating this revenue include:

Advertising

The City's 'Integrated Street Furniture' initiative will potentially consolidate advertis-ing opportunities under one contract, which is expected to increase the net amountof revenue generated by various sources - specifically bus, shelter, bench and wastereceptacles.

Photo IDs

Photo IDs, used to validate proof of payment, are both a cost and revenue flow totransit. A major cost is associated with the delivery of new student photo IDs in thefall of each year, resulting in long pass office line-ups and high administration costs.In 2009, a change in student age eligibility will help ease demand for photo IDs

A discount pricing option is planned for 2009 which will offer the lower price stu-



Figure 6.3.1

Sundry $ 756,525 17.5 %

Total $ 4,336,525 100 %

Park & Ride $ 130,000 3.0 %

Charter Services $ 215,000 5.0 %

Advertising $ 2,685,000 62.0 %

Photo IDs $ 550,000 12.5 %

Non-fare revenue targets,2009

Source 2009 Revenue targetPercentage of non-fare revenue

dents pay for Photo IDs ($4), only to those students who acquire new IDs betweenMay and July. Those who purchase Photo IDs in the fall will pay the full $8 price.

Park & Ride

Park & Ride revenue comes from the “Gold Permit” program, which allows transitriders to reserve a parking spot for a monthly fee. Currently, “gold” parking is limit-ed to 20% of all Park & Ride space in any particular lot. A certain degree of over-subscription is permitted and closely monitored to ensure maximum use of availablespaces.

At some lots - e.g., Greenboro - there is customer demand for more than 20% ofthe lot, and customers are currently denied Gold Permit parking. It is suggested thatGold Permit spaces should be allowed to expand to whatever extent is required ateach lot, to meet the demand. This will provide all customers will access to the pro-gram, and occupancy will continue to be optimized in the same manner as it is today.

The marketing plan also has identified Gold Permit parking as a suitable rewardmechanism for Annual pass holders and Ecopass subscribers. Permits would beoffered to these clients at a 20% discount. Plans to offer this reward in previousyears were inhibited by the 20% capacity limit, which required that permits beoffered on a first-come, first-served basis only.

Charter Service

Bus charters generate incremental revenue, but are limited by constraints on busavailability during peak periods. While not a major source of revenue, charter serv-ices support community events and social obligations. However, pricing for charterservices will increase in 2009, to more appropriately reflect the challenges of secur-ing bus service, as well as encourage the use of private sector charters.

Sundry

'Sundry' revenue is derived from rights being issued for the placement of newspaperboxes, concession outlets, automated teller machines (ATMs), sale of visitor passesand pass protection. These items account for 85 % of Sundry revenue.

In 2008, revenue from visitor passes will exceed $ 100,000. Visitor passes are soldto groups of individuals whose requirement for transit does not correspond with OCTranspo monthly period passes, such as convention guests. The price of visitor pass-es varies by group size and duration. In 2009, it is proposed that the price of visitorpasses be increased, as shown in Figure 6.3.2.



In 2009 an RFP will be prepared to select providers of vending machine services attransit stations. These will improve convenience for transit customers, and provideadditional revenue.

As a pilot project between 2002 and 2005, Group Home and Automobile Insurancewas offered by the Personal Insurance Company to Ecopass subscribers.Unfortunately, there were too many limits on the ability for The Personal to markettheir program, and it did not continue beyond the pilot. The concept of offeringautomobile insurance at a discounted price to frequent transit users is neverthelessstill valid, given the lower risk transit users represent to insurance companies. In2009, an RFP will be prepared and released inviting insurance companies to makebusiness proposals for a program that offers insurance to frequent transit users.

In 2009 gift cards will be made available for customers. These secure cards could beused to purchase transit passes, and would be marketed during holiday periods suchas Christmas, and around graduation. The sale of gift cards is an innovative approachto marketing transit and conveys a positive message about the delivery of a sociallyresponsible gift, which benefits both OC Transpo and the recipient.

6.4 Establish advertising value of transit assets

OC Transpo conducts an extensive communications and marketing program in manymedia channels, but the advertising potential of these assets has never been clearlyassessed. Occasionally, ads are sold on maps or fare media, although these opportu-nities are not pursued consistently and in any event, the potential and market valuesare not known. In 2009, advertising expertise will be sought to establish marketvalue for potential transit advertising that is not already contracted to third partyadvertising vendors such as Pattison, Clear Channel and Creative Outdoor. Thepotential assets for advertising might include tickets, passes, schedules, maps, elec-



Figure 6.3.2

500-9991,000 +

100-499

Visitor pass pricing

Quantityof passes

2008 prices 2009 prices

$ 3.00 $ 2.50 $ 2.00$ 3.50 $ 3.00 $ 2.50$ 4.00 $ 3.50 $ 3.00

1 day 2 days 3+ days

$ 4.00 $ 3.50 $ 3.00$ 4.50 $ 4.00 $ 3.50$ 5.00 $ 4.50 $ 4.00

1 day 2 days 3+ days

tronic signage, web site, database use, event sponsorship, distribution capabilities onplatforms and buses, handout capabilities, sampling of product corridors, etc.

Transit's role in the City's Integrated Street Furniture Program is to provide significantnew or existing opportunities to advertising sponsors. In 2009, an advertising mediasales strategy will be developed in the area of electronic signage, including real timerelay of text and video presentations on buses, in shelters and at transit stations,potentially involving current news, weather, sports, schedule information and adver-tising.



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