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Research
Travellers’ changing needs offer an opportunity to unlock untapped revenue streams for
rail operators says Mark Elliott
For years, Toc's have dictated
the kinds of services offered
to customers, such as booking
methods and pricing strategies.
Less time and money has been invested in
getting to know customers. Now, thanks
to new technology and deregulation,
travellers have greater power. And in this
changing landscape, operators may find
it difficult to adapt their businesses and
stay on track if they fail to understand the
needs and expectations of their customers.
A Western European rail survey from
Accenture shows that travellers have high
expectations of technological change for
travel 1 . Many are expecting to be using
their mobile as an electronic ticket as
early as this year and they anticipate that
public transport companies will step up
communications via social media.
The survey, of passengers in the
UK, Belgium, France, Germany, Italy,
Spain, Switzerland and the Netherlands,
demonstrates many customer expectations
– something that operators need to
understand if they are to capitalise on
current opportunities and challenges.
It revealed five key findings that
should be considered by those seeking to
grow their share of the deregulated and
increasingly competitive rail market:
1: Travellers want a one-stop booking
platform on their PC's - and will likely
expect the same on their mobile devices
Online has become the norm, with 71 per
cent of respondents saying they frequently
use the internet on their computers to
purchase tickets. In fact, passengers are
more satisfied with online booking than
with any alternative method.
In addition, 17 percent of those
surveyed, particularly younger passengers,
said they frequently book tickets using
their mobile devices. If other technologies
are any indication, the early adopters will
set the trend for mobile booking, making
it a channel for companies to prepare for.
The survey indicated that in two years’
time, mobile devices are likely to be an
increasingly important booking option.
When it comes to mobile ticketing,
rail operators trail other consumer-facing
industries such as entertainment and
airlines. So the gap between the number
of respondents currently using mobile
devices to book tickets and those who
would like to do so in the future may have
more to do with rail companies’ ability
to offer relevant mobile services than a
reluctance in passengers to use them.
2: Pricing transparency and ticket
refunds pose the biggest challenges for
passengers
Consumers want consistent and clear pricing
offers
Traditional yield management pricing
1. Accenture: High Performance in Public Transport May 21, 2013
July/August 2013 Page 71