Gorshkov´s blog

As we move through 2009 we can look back at a problematic year that will be regarded as one of the worst in global financial and commercial markets. We are all looking at ways and means of economising as well as generating new revenue streams.

Passenger ticket price rises are unpopular but a very necessary action in response to the financial downturn we have seen during 2008. In my own rail region in the south west of the UK we will see significant ticket price rises which, regrettably, the long suffering commuter will have to bear. But what else can be done to capture additional monies as well as protecting existing revenues?

With fare prices on the increase there will be an inevitable increase in ‘fare dodging’ or attempts to evade purchasing a ticket. The increased use of automated ticket barriers on platforms and stations will aggravate this problem, but if you have a conventional station and platform architecture there are further technology methods that operators can undertake to help protect revenues, especially important if you do not have the luxury of a high-cost electronic ticket barrier system.

The first of these is to consider the way in which onboard tickets are checked by the inspector. Many operators still use a simple ‘punch’ or ‘pencil’. While cost-effective, these methods are outdated and cannot cope with types of fraud like the use of counterfeit tickets, especially those from online sources.

Improved ticket validation on board is just one method of revenue protection that can be used.

For persistent dodgers the onboard CCTV system can be used and advertised as part of the enforcement regime to prevent revenue loss. CCTV systems are now widespread on transit systems although operators would need to consider the effectiveness of existing or older systems to evaluate if these are of the correct resolution and frame rates to provide an effective identification of a fare dodger.

Try a CCTV consultant to test the system against a Rotakin test target to see how effective your CCTV is – no bad thing to do on a regular basis anyway. To use the CCTV system in this way would only be realistic for ‘example’ prosecutions of determined offenders. However, the odd example of this kind can be very valuable as part of an overall revenue protection scheme.

I mentioned that some operators are increasing the use of electronic turnstiles at stations. Well, one method of securing online ticket purchasing is via the use of mobile (cell) phones to purchase and receive travel ‘credits’. These credits can then be used through the mobile phone at the turnstiles, or on the train itself, to register a ‘start point’ of a journey. The introduction of the ‘near field communication’ (NFC) protocol into the mobile phone market has enabled this option to be considered by operators as a potential online or remote payment method of delivering travel credits to passengers who can then use them on their NFC-enabled mobile phone.

The mobile phone is effectively swiped as a passenger enters and exits the train or platform and credit is deducted as if the passenger were using a credit card, based on the original start point in the travel network. Credits can also be arranged for fixed-fee journeys such as used by some tram or metro operators.

Electronic money can also be sent to a mobile phone in the form of a secure 2D barcode that can be displayed on the mobile phone screen and swiped over a reader used at the turnstile or by an inspector. This method is already in use by a number of cinemas to send ‘tickets’ to customers in an electronic format that they can carry with them to the cinema.

As you can see, there are many new methods of protecting existing revenues as well as considering various types of new revenue streams from passengers or onboard advertisers. What is clear is that whatever you do as an operator, new technology will be part of the solutions that you provide and onboard broadband and digital communications systems are part of the essential components in the revenue protection and generation schemes of the future. Whether these systems are interfacing with the staff and their ticketing systems or providing revenue-based enabling broadband communications for passengers’ advanced communications, this shows the way forward to help improve and protect revenues.