Travelers recognize role of technology in delivering better service and are willing to pay

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Kelly French
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1 Travelers recognize role of technology in delivering better service and are willing to pay

2 2 Public Transport Technology Review

3 Consumers, aided by mobile technology, expect easy, efficient customer transactions in all spheres of their lives. They want their door-todoor public transport journey to run as smoothly as if they had driven there themselves and expect technology to pave the way. Respondents to a global Accenture survey on public transport confirmed this trend and highlighted the important role that technology has to play in attracting and retaining riders by offering greater customer satisfaction and ease. 1 Travelers in Seoul, Sao Paulo, Barcelona, Berlin, London, Paris, New York, Los Angeles, and Washington, D.C. anticipate that price, technological change and consumer demand will drive the provision of integrated, ticketless travel. What s more, the majority said they are willing to pay for the convenience. Not only do travelers want technology integrated into their transport infrastructure, they also want more frequent communication from and greater access to the transportation providers via social media. TRANSIT PASS 1 The consumer survey was conducted by Coleman Parkes Research on behalf of Accenture. It was carried out online in September 2012 in multiple languages in South Korea, Brazil, the United States, France, Germany, Spain and the United Kingdom. All 4,500 respondents were over 18 years old. Modes of transport surveyed include subways, taxis, boats, cars, trains, trams and buses. Public Transport Technology Review 3

4 Travelers see the benefits of an integrated, ticketless journey Survey respondents globally (76 percent average) believe a ticketless system using contactless payments or proof of purchase on mobile devices would encourage some drivers to start using public transport. That figure is even higher in London (79 percent), Washington, D.C. (79 percent), New York City (78 percent) and Los Angeles (86 percent), compared to just 69 percent in Berlin. An overwhelming 92 percent of total respondents agree that ticketless travel is appealing. When asked about what would motivate them to turn to ticketless travel, 88 percent cited time savings, the biggest factor across all respondents. The survey also revealed that nearly all of respondents (93 percent) are interested in a single ticket for multiple modes of transportation, with 69 percent believing it would help increase riders. Two-thirds of travelers said they would use an integrated ticket daily, with the highest percentages in London, Seoul, New York and Sao Paulo. Although it may be difficult to integrate new technology into existing operations, customers expect it. And they want it fast: 77 percent of global respondents expect to purchase tickets on their mobile devices in the next two years, particularly those in Los Angeles, New York, Sao Paulo and London. Although about one in three respondents believe they will be purchasing travel tickets via a mobile device by 2013, 66 percent do not believe that they currently have the option to purchase tickets using their smartphone. Survey respondents apparently see a cost-benefit trade-off for ticketless travel. It found that 52 percent of respondents would be willing to pay at least 10 percent more for travel if it generated technology improvements, such as the ability to use a smartphone as a ticket while traveling, an app from transport providers, and/or a ticketless travel option. Only 10 percent (on average) of respondents said they would be unwilling to accept any price increase to pay for new technology. Travelers willingness to pay for the technology can help defray implementation costs plus potentially generate revenue by attracting and retaining riders over the long term. 4 Public Transport Technology Review

5 Technology seen as key to improved communication Integrated, ticketless travel is not the only technology consumers want transport agencies to employ. Survey results indicate that consumers want transport providers to communicate more frequently via social media to learn about the latest prices, promotions and scheduling changes. Only 22 percent of respondents on average said they receive communication from public transport companies via social media on a daily basis. However, more than 90 percent of those respondents are interested in receiving information on the latest transport prices and promotions, late running trains and alerts, and changes in timetables and new technology all through social media. The survey also showed little difference by age when it comes to using social media for public transportation-related information; 63 percent of respondents over 65 years old intend to, or already, follow public transport providers on Facebook, and 42 percent on Twitter. The same group is also open to receiving notifications via social media. However, only about half say they receive communication via social media on a weekly or daily basis from transport providers. U.S. respondents were among the highest users of social media with transport providers, identifying this as a good method of communication. The survey revealed: In New York and Los Angeles, 75 percent of respondents already follow or intend to follow public transportation providers on social media In Washington, D.C., 71 percent of those surveyed reported they receive information on a daily and weekly basis from public transport providers The desire for connected travel and greater communication extends into other areas. Respondents also say they want to use a smartphone while en route, download an app from transport providers, and have the option of electronic ticketing. These are just a few of the survey findings suggesting that consumers expect transport agencies to employ technology to deliver a more convenient travel experience. Through technology, public transport providers have an opportunity to address ridership and revenue challenges that continue to impact performance. But doing so means developing technology-driven strategies that offer consumers the kind of superior travel experience they will increasingly come to expect. For more information on this research, please visit publictransportation. U.S. respondents were among the highest users of social media with transport providers, identifying this as a good method of communication. Like Public Transport Technology Review 5

6 Contact: Philippe Guittat Michael J. Wilson Methodology The consumer survey was conducted by Coleman Parkes Research on behalf of Accenture. It was carried out online in September 2012 in multiple languages in South Korea, Brazil, the United States, France, Germany, Spain and the United Kingdom. All 4,500 respondents were over 18 years old. Modes of transport surveyed include subways, taxis, boats, cars, trains, trams and buses. Copyright 2013 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 261,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, Its home page is

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