THNS – Shanghai – 10 -11 Nov. 2009 1 Marketing as a key point of public transport development...

THNS – Shanghai – 10 -11 Nov. 2009

1

Marketing as a key point of public transport development

Seconde conférence Franco-Chinoise sur les systèmes de transport urbains durables

Shanghaï, 10-11 novembre 2009

Christian Coddet, Vice-President

Christian Proust, President

Marc Rovigo, Director

Transports à Haut Niveau de Service pour des villes à faible émission de carbone


2Marketing as a key point of public transport

development

1- Introduction

2- Analysis of the situation

3- Political decisions

4- Actions

5- Results

6- Conclusion and perspectives

Content

Christian Coddet


3

Where are we ?

Introduction

France

Germany

Switzerland

Belfort


4 Who are we ?

A few numbers:

- 56 000 families

- 150 000 inhabitants

- 650 km2

Introduction

A public body in charge of all questions of public transportation in the region of « Territoire de Belfort » Belfort


5Our missions

Introduction

To developp, to organize, to finance public transportation

To provide:- Transportation for pupils

- Tranportation in the urban area (about 90 000 inhabitants)

- Transportation in the suburban areas (about 30 000 inhab.)

- Transportation in the remote areas (about 30 000 inhab.)

- Transportation of disabled persons


6

Analysis of

the situation

Observation of the new team in charge of the SMTC in 2006 :

A dramatic decrease (2 millions) in the number of passengers during the last 10 years, i.e. – 30% !

Less passengers

Lower revenueHigher

cost

Degraded service

?

The system was entered in a spiral of regression


7

Voiture particulière

68,2%

Analysis of

the situation

Others

0,9%

2 wheels

1,7%Public transport

5,6%

Walk23,7%

Cars

68,1%

An overwhelming role of private cars for daily travels


8Marketing expenses were extremely low

versus general commercial practices

Analysis of

the situation

2006 budget

7%

31%

49%

12% 1%

Subcontracting

Personnel

GeneralFuel and maintenance

Marketing: < 1%

People were considered as « users » rather than clients of the service; they desserved little attention


9Fares structure was very complex:

75 different rates !

Analysis of

the situation

Selling practices were also very counterproductive: a large number of inboard selling reduced dramatically the commercial

speed of buses

53%

13%

34%

Single ticket

Prepaid

Monthly pass


10Additional general observation

Analysis of

the situation

Public tranportation is an activity sector where production (a number of seats x km) is little or

even not valued.

Less than 10 % of the capacity is generally used !

The service is predominantly used by

- People dispensed from paying fares (social cases)

- School pupils

- People having no other solution (no car)


11

• Think service first rather than infrastructure• Restore the image of public transportation

• Incite rather than constrain

To get out of the decline, strong political decisions had to be taken

NB: The concept of « public service » has also to be precised: concerning transportation, it cannot be an equal opportunity for each citizen ignoring the reality

of the local situation.

Political

decisions


Since January 2008, more than 100 new passes are created

each week.

Citizen are waiting for a service; the offer should then be a mobility contract

with easy access.Therefore, the first decision was to create a free, life lasting pass : the “Pass Optymo”.Actions


13

PASS OPTYMO

Actions

- Free and simple : the bus as you wish and when you wish.

- Post payment : the client receives a monthly invoice.

- Limited payment : 0.8 €/travel with a maximum of 31 €/month full fare (from 39 rides, bus is free); there is also a reduced fare of 9 €/month for kids and social purpose (bus is free after 12 rides).


14To ease life: the post payment

Actions

Bank transfer

computercomputer

Calculation with limitation at 31 or 9 €

CashInvoice


15Public transport requires a dynamic

and positive image to be developped.

A brand name was thus created in order to promote the service.

Actions


Strong marketing actions were taken

Actions

Marketing budget was first multiplied by 4 for prospection, animation, clients rewards, partneships, …

Accordingly, the « product » was also « packaged » with a new look and reorganized (staying within the same global budget)


17

To sell more, fees were reduced

2006 2009 %

Single ticket 1.10 € 0.80 € - 27%

Maximun monthly fare 56.40 € 31.00 € - 45%

Actions

Once seats-km are produced, it’s better if they are used !

Please, get in !


18 Partnership is now being developpedwith companies and administrations

Comité d’Etablissement

Actions


19and also with shops and merchants

Tickets can be prepaid and offered by shop keepers in a special « gift » packaging

Actions


20

Nombre de Pass Optymo

2141217828

2316925624

28281

13457

9219

4247

0

5 000

10 000

15 000

20 000

25 000

30 000

11/2

007

12/2

007

01/2

008

02/2

008

03/2

008

04/2

008

05/2

008

06/2

008

07/2

008

08/2

008

09/2

008

10/2

008

11/2

008

12/2

008

01/2

009

02/2

009

03/2

009

04/2

009

05/2

009

06/2

009

07/2

009

08/2

009

Mois

No

mb

re

Nbre carte attribuée

Cumul

Results

The results

Number of Pass Optymo delivered versus time

Month

Nu

mb

er


21

The results voyages

5 808 825

4 886 920 4 833 253

0

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

2008 2007 2006

Results

1 million more passengers in 2008


22 For the first year (2008), the « Pass Optymo accounted for 85% of travels

Results

An average of 6500 invoices were edited each month (invoices are not emitted below 10 €)

– 2/3 were settled by bank tranfer– 1.25 % remained unpaid – The mean direct cost of an invoice was 0.14 €

- 25% were free rides for pupils

- 60 % were normal and reduced fares


23 Now a virtuous circle seems to have replaced the regression spiral

Demand: ride*km

+45%

Demand: ride*km

+45%

Cost per passenger:

-13%

Cost per passenger:

-13%

Offer: bus*km

+35%

Offer: bus*km

+35%

Conclusion

Numbers as in September 2009


24

24

And what next ?

Conclusion

- One objective is to reach 16% of transportation share within 10 years (from 5.6% in 2007).

- The other is to propose a real right to public transportation on all of the territory (with of course different systems and conditions between urban, suburban and remote areas).

New marketing methods are still being developped such as:

- Ticketing by SMS (already a success !)

- Modulation of fares

- …


Our project : to open in Belfort a new route for the development of public

transportation and thus move towards a more sustainable transportation system

Conclusion


Part of the studies and technical developments were made in partnership with UTBM, the University of Technology

of Belfort-Montbéliard

THNS – Shanghai – 10 -11 Nov. 2009 1 Marketing as a key point of public transport development...

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