10 Ideas: Ways to increase public transport revenue

Steve Pell

Steve Pell

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Nov 17, 2017 · 11 min read

You’ve been given a wide mandate to explore ways to increase the revenue
generated by passengers and the system as a whole. What ideas might increase
revenue?

This post is a collection of responses from the weekly 10 ideas email. If you’d like
to be more creative every week, you can sign up to receive the email here.

SOME OF MY FAVOURITE RESPONSES THIS WEEK:

The idea I wish I had: Coworking and meeting spaces on trains — rent a desk —
for commute, meeting or maybe full time / travel the rails all day — lunch in
Geelong today; Ballarat tomorrow

How do you feel about a virtual shopping train? Virtual supermarket carriages —
choose and pay — we’ll deliver (On this topic check out what Tesco have done in
Korea https://www.youtube.com/watch?v=fGaVFRzTTP4) Someone also took this
a step further with: Marketing carriages — travel in the Sonos carriage —
experience the products and meet the product reps, try and maybe buy.

For sheer creativity I liked telco extortion: Charge Telstra / Optus / Vodafone to
install signal rebroadcast systems in train / trams / bus carriages for faster data
speeds. If any of the networks refuse to pay, then run a pubic awareness campaign
so that everyone knows how much slower certain networks are when used on
public transport. Perhaps the signal rebroadcast could even slow or interfere with
the speeds of networks that don’t pay.

The data opportunity to track cross modal travel: Partner with toll road operators to
build an integrated map and analytics of how people move cross modal throughout
the city. Use credit card tap on to data match.This data can then be sold back to the
state government to make better decisions about future infrastructure. Can also be
sold to property developers — i.e. who is likely to move or commute from a
certain area and where can you currently find them.

A creative way to add network capacity without capex: Making the network faster
with dual crossovers and premium trains: max the number of people / hr in peak
with the minimum $ of capex by utilizing the ‘empty’ outbound track to run longer
trains that stop at each second station. Reduces the slow part of people getting on
and off.

This actually has the potential to generate a lot of $$$ (until the robots take over):
Use buses and trams equiped with smart sensor technology and cameras to monitor
for traffic violations. When a fine is issued the public transportation system retains
25% to reinvest in system / infrastructure.

THE FULL LIST

RAISING PRICES / NEW TICKETING OPTIONS

Put all fares up but add a safety net for hardship where you can claim back a rebate
(like the M4 rebate in Sydney). Use Opal data to maximise revenue / minimise
evasion

Congestion pricing for rail. If you want to travel at peak time, you pay more. If you
want to travel off peak, you pay substantially less.

Changes to the current ticket pricing system could include: time of day pricing
(lower fares when there is spare capacity), offering additional services at a
premium (seat selection for example) and/or introducing loyalty schemes.

become the card issuer for Opal cards and require all business tenants in train
stations to use it. Do the same with busses and then market the card to business
with proximity to bus stops — sell this business to a global major / bank /

Price differentiation for a guaranteed seat

Frequent user points and discounts

INCREASING CAPACITY / BETTER SERVICES

Duplicate platforms at the centre of town where trains stop every stop but then run
all trains every second stop on way in with a loop at stations — ie use looping to
cut out / reduce the slow part of people getting off and on — more important closer
to the centre and adds most value to the most people at the fringe who might
switch if ride is faster and who also pay more

Run longer trains and install crossovers at each end of each station — as a train
approaches a station it splits and the back half crosses onto the opposite side track
and expresses the station — ie it overtakes. You would use signals to stop any
approaching train short of the crossover so that there is no collision. The front half
then stops normally at the next stop and the process repeats such that you will get
roughly 2x the thru put on the way in. The full train would then need to stop twice
(due to length) at the big central stations but could then use single stops (ie ½ the
train) on the way out as not so many people. In this way you max the number of
people / hr in peak with the minimum $ of capex by utilizing the ‘empty’ outbound
track — you then use this capacity to lower prices but increase volume with the
overall impact of increasing revenue at minimal capex and 0 additional opex

Improve frequency and coverage of public transport so more people use services

Increase the speed of trains = more trains and a more attractive proposition relative
to personal transport = more people.

Build special peak hour trains and trams with no seats so you can increase capacity
and move more people.

Use new carriages with faster ingress / egress so make more trains go faster

Train to Melbourne airport

More express trains to/from outer suburbs that express the inner suburbs

Run premium express services on outer suburban lines that take half the time but
cost 4x the price. Should be possible to facilitate with next generation signalling
without slowing down existing trains.

Run point to point express buses from all major centres to the airport (i.e. Box Hill,
Dandenong, Werribee). These Skybus systems are super profitable and there’s no
reason they couldn’t cheaply be extended to 10 points across the city
REDUCING COST BASE

Introduce driverless vehicles to reduce the cost base

Cut costs — automate trains/buses/light rail and cut the number of drivers by 50%.

SELLING DATA

Partner with toll road operators to build an integrated map and analytics of how
people move cross modal throughout the city. This can be done with credit card
matching. This data can then be sold back to the state government to make better
decisions about future infrastructure. Can also be sold to property developers —
i.e. who is likely to move or commute from a certain area and where can you
currently find them.

Remove the need to have a separate card to tap on to public transport, and just let
everyone tap on with their credit or eftpos card. This then opens up big data
matching opportunities as well.

Sell the ticket use data (Opal) to 3rd parties eg Quantium who can use it to better
target advertising / products to corporates

FINES AND EVASION

Increase charges against individuals behaving badly on public transport, including

those littering and disturbing other passengers.

Eliminate fare evasion. Facial recognition on trains, trams and buses to eliminate
fare evasion. Your face is linked to your credit card.

Sensor cards that know when you’re using the system and automatically debit your
account — removes the ability to ride for free

Use buses and trams equiped with smart sensor technology and cameras to monitor
for traffic violations. When a fine is issued the public transportation system retains
25% to reinvest in system / infrastructure.

NEW FINANCING OPTIONS

In Australia, it might be possible to use private superannuation funds to finance

infrastructure projects. This would probably need to be in combination with new
tax and infrastructure reforms that would allow for lower average cost of capital
for eligible projects, lower compliance costs and greater certainty for
investors/super funds.

Restructure transport funding. Instead of roads being paid from car registration and
council rates, transportation is funded holistically based on where you live. Both
property owners and users pay a transportation levy that funds public transport,
roads, cycleways in proportion to local usage and desired usage.

ON TRAIN EXPERIENCE

Marketing carriages — travel in the Sonos carriage — experience the products and
meet the product reps, try and maybe buy.

Sponsored on-train entertainment events like the viral train rave

Transport operators provide mobile phone plans in partnership with telcos

Coffee on Board

Bars on board!

Themed services eg hospital, old age, youth,party

Premium / Silent / Dining train carriages

ONBOARD SERVICES

Telco extortion. By far the biggest activity on public transport is mobile data
consumption. Charge Telstra / Optus / Vodafone to install signal rebroadcast
systems in train / trams / buses for faster data speeds. If any of the networks refuse
to pay, then run a pubic awareness campaign so that everyone knows how much
slower certain networks are when used on public transport. Perhaps the signal
rebroadcast could even slow or interfere with the speeds of networks that don’t
pay.

Install wifi on all vehicles and sell monthly wifi subscription with streaming
options — audio books / movies / podcasts / tv shows

Provide free wifi on board so more people use services

Fee based WiFi access

Virtual supermarket carriages — choose and pay — we’ll deliver

Get a wifi provider (eg Superloop, Skifi) to pay for right to provide wifi in cars.
Grant them the right to use rail owned fibre networks for backbone (they would
pay for that)

Headphone sales for wifi / streaming services

Free WiFi provided by a sponsor business (they get to advertise)

Free wifi and sell insights data

REAL ESTATE DEVELOPMENT

Property developments at and around public transport stations is the obvious one.
Be it commercial, residential and/or retail spaces (e.g. shopping centers, office
towers, restaurants, car parking, markets, childcare centers) located at or within
walking distance of transport hubs. These can be newly constructed or
redevelopments of existing structures.

Rebuilding every station with a supermarket and apartment building on top. Turn
every station into a community centre. The train station could be a community hub
with a post office, police station (given already guarded at night). Most have
reasonably good car parking. Already has police support, car parking and generally
good transportation links. We could have a for profit government authority that just
rebuilds train stations for profit and invests the proceeds back into better public
transport.

Large scale value capture. Building new underground train lines in conjunction
with buying up real estate in these areas, and benefiting from the development of
new suburbs/ activity centres.

Sell the airspace over the top of train tracks for residential/commercial properties
(create above ground tunnels)

Air-rights to construct above a transport hub could be sold to property developers

and/or advertisers.
When build rail lines always put forward 2 routes and make councils bid for a
route that goes thru their area. A new train will add to economic value (ie land)
over 50+ years so get them to agree a long run council train tax on property within
the 1km to the station that phases in over time. Better still buy the land yourself
and then rent it

Build a series of islands in the bay that are only connected via fast subway to the
city. Profit via real estate development and ongoing transportation.

Become an attractive partner for real estate developers. When a new estate or
building is being built, the PTC has the ability to become a co-investor (vending in
local area transportation). Ability to capture windfall profits when new areas are
developed, with much better access to transportation.

Connection charges — property developers pay a fee to be connected to the transit

system.

Introduce demand shuttles to move people between their homes and train stations,
than the park and ride parking spaces can be repurposed and sold.

ON DEMAND / LAST MILE TRANSPORT

Uber style buses

On demand services door to door

Introduce ‘Uber’ style service for traveller’s last mile

Provide bicycle service at train stations

Offer free bike insurance + 3rd party property insurance if you leave your bike at
the station and get the train. If your bike gets stolen you get a new one. You could
also start buying and renting bike fleets at high use / low parking stations on the
outskirts. Combine with idea #2 for a faster overall service

Home pick up / drop off service — perhaps UBER connect services — charged to
Myki or equivalent synchronised to meet public transport

Membership services eg: develop PTV partnership with car sharing services (eg:
Car Next Door) to provide vehicle available for hourly usage at all stations
Build an autonomous vehicle integration so people can drop off a car at the station
and then pick up another car at the other end. The whole thing can be charged to
their credit card without having any separate check in.

ADVERTISING

Increase advertising revenue with electronic ads/screens on vehicles

Ads on back of pay-on-spot tickets

Video advertising

Increase advertising revenue — through better design of apps, websites &

billboards.

Use onboard passenger information displays for advertising

Sell advertising on the outside of the train + sell advertising on the inside of the
train

Allow local businesses to advertise at their local station

Digital ad boards — target messaging for location-specific businesses as the train

moves along

STATION IMPROVEMENTS

Introduce ‘airport lounge’ styled offer at major transport hubs

Partner with someone like Blue Apron so people can have dinner waiting for them
when they step off the train at the station. Pick up and you’re ready to cook dinner
without having to stop at the supermarket.

Partner with either Coles or Woolworths or Amazon for Integrated grocery

ordering and pickup. You get a reminder as soon as you get on the train to order
for tonights dinner and it’s waiting for you in a refrigerated locker as soon as you
arrive at the station.

Meal packs — Pepperleaf / Marley Spoon type food pre-ordered for pickup at
destination station
Paid premium traveller lounge at stations — simple airport type breakfasts /
snacks/ coffee / teas / water

Become a facilitator of last mile logistics for retail deliveries. Why couldn’t you
colocate a post office at every train station. There’s a lot of things that could be
conveniently delivered to the local train station.

Use tram and bus stops as locations for a network of coffee carts.

Offer charging for electric vehicles parked at the station.

Charging a daily car parking fee at train stations

CAR RESTRICTIONS AND CHARGES

Congestion charging could be introduced in Sydney, Melbourne, Brisbane & Perth

to curb road congestion and encourage more people to use public transport rather
than their cars.

No car zones

Raise parking fees

City entry charges

Induce greater use of public transport by increase parking cost at destination

Increase\introduce congestion tax in civic centres

increase fuel tax

Reduce number of parking places in civic centres

Lobby for much higher road tolls / carbon taxes / congestion charges/ tax offset for
public transport — will improve use based on relative price

TOURISM

Focus on tourism maybe Victorian Tourist Tours (better name required) — sell
statewide experiences / the best of Victoria eg: Exploration Tours for Chinese
tourists — transport / accomodation / events / entry / guides etc
COWORKING ON TRAINS

Coworking and meeting spaces on trains — rent a desk — for commute, meeting
or maybe full time / travel the rails all day — lunch in Geelong today; Ballarat
tomorrow;

No-internet co-working. When you really need to get something done, you can rent
a desk on a train that leaves at 8am in the morning and doesn’t get back to the city
until 8pm at night. No wifi. Blocks all data signals (like airplane mode for the day).
Coffee, lunch, snacks, but no internet. Perfect for writers or creatives who just need
to GSD.