Strategy Saves $85.0M - Free Travel on Rail Before 7.00am in Melbourne!!

[Mozz]

http://www.theage.com.au/national/sleepy-commuters-doing-bit-to-save-state-85m-20090926-g76y.html

We can hope and pray that more research like the one above will help to change the mindsets of the decision makers and force some innovations in public transport here in sunny queensland.

I can't abide by some of the current economic rationalist excuses being rolled out to prevent innovative strategies.

The prime example is that of free travel for seniors on weekends. Weekend services have spare capacity and run regardless however the excuse used to prevent this type of initiative is that each passenger is a cost of $x dollars regardless so even a "free" passenger on an existing service is assigned a dollar value and this must be paid for by someone.

This type of excuse is one dimensional at best and doesn't factor in the community and health and other benefits of such an initiative. Nor does it consider the potential increase in fare paying customers that may well flow from those seniors who currently don't catch public transport.

Feel free to contribute your thoughts.

[ozbob]

The Queensland Government and the TTA are unable to grasp the big picture.

This is an excellent study Mozz, thanks for highlighting it.

RAIL Back On Track has constantly called for innovative fares - the go card IS capable of any fare structure that would be desirable - we have a stalemate.

Might be time to highlight again.

[ozbob]

Media Release 27 September 2009

SEQ:  Early bird travel in Melbourne huge success, innovation stalemate Brisbane

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport commuters has said the early bird scheme in Melbourne has been a huge success (1).  Brisbane has the go card, which provides a simple means to introduce incentive fares, early and late peak and off peak.  Why do we languish in a fare backwater?

Robert Dow, spokesperson for RAIL Back On Track said:

"The experience in Melbourne with free early bird travel has confirmed that innovation in public transport does save money and improves efficiency."

"It is clear from public feedback, our observations and actual go card experience that the major stumbling block for uptake with the go card is the fare structure. It is time that our investment in the go card system is turned into improved public transport efficiencies. To drive go card uptake a fare structure for the go card that matches and betters the present paper tickets in innovative ways is needed.  Early, late, and off peak discounts with capping to match daily, weekly and monthly tickets is what is needed to drive uptake and continued use of the go card. Such a fare structure will also assist in congestion management."

"A high uptake of the go card will reduce overall ticketing costs and provide more funding for urgently needed services.  Accurate real time loading data will be available which will also allow TransLink and the operators to fine tune timetables to match services with the actual demands.  Reduced loading times for bus particularly will assist greatly in speeding up overall route journey times."

"Other states have introduced free travel options for Seniors as well, apart from the concession fares (2). Smart states actually do innovation,  the 'Smart State' just drowns in its spin.  Is it not time that something was done?

References:

1.  Sleepy commuters doing bit to save state $85m http://www.theage.com.au/national/sleepy-commuters-doing-bit-to-save-state-85m-20090926-g76y.html

2.  Call for free Sunday TransLink travel for Seniors on Go Card and the reintroduction of a weekend 'family' ticket!
    http://backontrack.org/mbs/index.php?topic=2555.0

Contact:

Robert Dow
Administration
admin@backontrack.org

[#Metro]

What a beautiful, practical study.
Yes! When early morning trains would usually transport air, people are using them. That is efficiency!

Sticks and carrots...
Passengers during the peak hour take up ever scarcer space on the train.
There is high demand, an low supply. Therefore rationing automatically takes place.

Time rationing
In the absence of a peak hour fare, the train gets full and some people can't fit on. They are left at the platform because the train is only so big. "the quota" is filled.  They get a time penalty, and that costs them. It is also inefficient as earlier trains are carrying air, and there is no distinction between passengers who really need to travel at that time and passengers who don't.

Price rationing
In the presence of a peak hour fare (and or free/reduced pre-peak fares), those people who really need a seat will pay the higher price. Those who don't will be discouraged, and will elect to to catch the earlier train. Everyone gets a seat, and the gov saves money.

There are all sorts of different ways have a fare structure. Like $1 flat fare from anywhere in the pre-peak. I think you could get a similar effect by increasing the peak hour fares, and at the same time, decreasing pre- and post- peak fares. It might even work better in the presence of a congestion road toll. But of course, the politicians can't say that, it's an ugly truth

[ozbob]

 

[#Metro]

... the excuse used to prevent this type of initiative is that each passenger is a cost of $x dollars regardless so even a "free" passenger on an existing service is assigned a dollar value and this must be paid for by someone.

Mozz, you are right. Whoever offered this explanation to you, doesn't seem to understand basic economics.
The passenger doesn't have a dollar value. But the space accommodating the passenger (seating, standing space) does.
It is what has value, and it is what the passenger pays for. If a passenger does not pay to occupy that space, then the transport company makes a loss, because the train will transport air instead. And, trust me, air does not pay anyone any fares.

The cost of running a train is virtually fixed. It only matters if there are so many people that you need another one.
This is hardly the case on a weekend. It costs the same to run the train, whether full or empty.

In these situations, it is better to lower fares (sometimes to zero) and make some money (or in this case, give some public benefit as PT is subsidised) rather than run an empty service. In an (ideally) efficient service, no train would be empty, and no train would be over-full. Everyone would have a seat, and nobody would miss out.

This is the logic behind off-peak fares, because, as you said Mozz, the cost is practically the same.

[Mozz]

Translink's economic rationale - head of translink provided the advice to the Minister and this is the position of both - have actually been in the room having discussions with them on the issue and this is their position.

[somebody]

I don't know if anyone had ever thought of offering free fares before 7am before.  Wasn't it done mostly to solve critical overcrowding in the peak due to a shortage of trains?  The test will be when the new trains arrive if it's still successful.

[#Metro]

Sounds more like an irrationale.
The only case that I can think of, is:

If pensioners already catch the train, and
giving them free transport would have no effect on their numbers (i.e they all travel free, when previously they all paid).

Still. If Melbourne can do it, and the sky hasn't fallen down, what's  holding up Queensland?
Melbourne has had whole days where transport is free (New Years and other public holidays I think).

We could do with a Graham Currie in Qld.

[ozbob]

Part of our rationale for free travel on a red go card on Sundays is that it will encourage Seniors to make the change.  Then, during the week as folks travel around they are more likely to use the red go card for their concession travel.  When I have gone out to the suburbs on various bus runs I have noted that in the City many go cards but as you track out into the suburbs most local commuters are paying cash.  This is frustrating as it does slow things up.  Plus the usual hassles with change.   The small loss in direct fare revenue on a Sunday would be more than offset by improved efficiency gains at other times.  Our initiatives in this area has always be strongly supported by Seniors' groups (as may well be expected).

It is worth noting that ALL mainland states have various public transport schemes for seniors above the standard concession fares.  All except Queensland.

Bring it on!

[dwb]

I was at the bus stop the other day and a pensioner started talking to me about how cheap PT is for him. He was delighted at being able to travel around so cheaply already, out of peak. there is no need to make it free for this type of passenger only. with changes in demography it will only lead to payment imbalance.

i'd rather see fares generally come down outside of peak and probably go up in peak.

[ozbob]

I am with you on  the differential fare pricing DWB, simple to implement with the go card.  There are indications that Melbourne will be doing something similar with the myki.   

Giving red go card users free travel on a Sunday is not going to distort anything but will encourage go card uptake.  Good vibes for all.