Bus ticket enters the digital age in Western Europe

If you asked users of public transport what they consider to be the most important aspect of the service, how would they answer? The Flemish public transport company De Lijn put the question to 4,000 passengers. One of the top responses, not surprisingly, was punctuality. So, to further improve punctuality, De Lijn has been working for several years towards securing a better service via special bus lanes, traffic light intervention and infrastructural works. But more was needed.

Ticket sales on-board cost a lot of time and form a considerable barrier to punctuality. This was to be the catalyst for a successful pre-sale network, with a new payment method; SMS ticketing without pre-registration – a first in Western Europe.

Pre-sales save 87,500 hours

Over the past few years, De Lijn has seen a spectacular growth in passengers. In seven years’ time, the total number of passengers has more than doubled, from 223 million in 1999 to 462 million in 2006. With that growth in passenger numbers, on-board sales also rose significantly. Prior to the introduction of the pre-sale network, around 95 per cent of non-subscribers purchased their tickets from the driver. This meant 30 million tickets sold on-board in 2004. At 15 seconds per transaction, that adds up to 125,000 hours that vehicles are at a standstill. Market research has shown that 70 per cent of those transactions could be converted to pre-sales. That would generate a time saving of 87,500 hours and result in more punctual buses and trams.

To improve punctuality, De Lijn launched an extensive pre-sale network on 1 March 2006 that now has more than 3,100 sales points. That network comprises predominantly of newsagents and supermarkets, but train stations, video stores, grocery stores and fuel stations also take part. With just a few exceptions, virtually every Flemish commune has at least one outlet.

As a commercial stimulus to boost pre-sales, De Lijn offered a generous discount in the pre-sale outlets. Managing Director of De Lijn, Ingrid Lieten stated; “With a 20 per cent discount in pre-sale, and a large number of pre-sale outlets, we are looking to convince passengers to purchase their tickets in advance. That way, we gain time and can operate with greater punctuality. Drivers, as a result, are also able to take more advantage of their rest time.”

SMS ticketing aimed at ticket passengers

The pre-sale network was an instant success. The number of transactions with the driver decreased by around 40 per cent. Currently, that is around 150 per month, as opposed to 259 before the start of pre-sales. The target of 25 per cent tickets in pre-sale was quickly achieved. In August 2007, 65 per cent of tickets and multiride cards crossed the counter at pre-sale outlets. Above all, multiride cards are showing the way with 90 per cent sold in pre-sale. Tickets are lagging behind with just 20 per cent in pre-sale.

Research has shown that passengers purchase multiride cards because they are much cheaper than a normal ticket. Those who purchase a ticket do so because it is easy. The ‘convenience passenger’ attaches less importance to the price. According to the same research, around 59 per cent of these convenience passengers would purchase a ticket by SMS if the possibility existed.

Managing Director, Ingrid Lieten commented that; “Punctuality is the most important issue for our customers. However, punctuality is sometimes under threat by the great number of passengers still purchasing their tickets from the driver and not in pre-sale. For ease, such passengers opted in favour of a more expensive ticket on-board. It is precisely these passengers which we’d like to convince with the SMS ticket. An SMS ticket is cheaper than a ticket from the driver.”

A first for Western Europe

For these passengers, De Lijn launched a first for Western Europe on 6 September 2007; SMS ticketing without pre-registration. Put otherwise, a ticket that can be paid via mobile phone and for which payment is arranged automatically. The system has been launched in the city networks of Antwerp and Ghent; the two largest cities in Flanders.

To buy an SMS ticket, passengers must text an order code to the service number 4884. This code is DLA (De Lijn Antwerp) for Antwerp, or DLG (De Lijn Ghent) for Ghent. The telecom operator then forwards the application message to the SMS ticketing system in Finland. The latter processes and archives the order and sends a message back to the telecom operator. That message is either an SMS ticket or an error message. The telecom operator then sends a text message with the response to the customer and completes payment with the end user. Upon receipt of the SMS ticket, the customer is free to ride anywhere within the city networks of Antwerp and Ghent for a period of one hour.

For the development of the application, De Lijn collaborated with the Finnish company Plusdial. The system developed by Plusdial was introduced in Helsinki in 2002 and is currently in use in 15 Swedish cities as well. In Flanders, De Lijn joined forces with the mobile operator, Proximus, the market leader in Belgium. Talks are currently underway with the two other operators.

Cheaper than on-board

An SMS ticket costs 1.20 Euros, plus 0.15 Euros for the request message. That means an SMS ticket is still cheaper than purchasing a ticket from the driver at a cost of 1.50 Euros. What is unique about this system is that it is integrated. The ticket price is either paid via the monthly mobile invoice, or deducted from the user’s pre-paid call credit. Some cities (for example, Bonn and Rome) already have a system of SMS ticketing. However, it is not integrated as the customer needs to register in advance and pay by separate bank transfer.

There have been concerns about whether the system was fraud and error proof. Can an SMS ticket be forwarded? What if the mobile phone has a flat battery after it receives the SMS ticket? Naturally, all this has been foreseen. In Finland, where the system was launched, more than 13 million SMS tickets have already been sent. No-one has yet succeeded in cracking the system. If the mobile phone goes out of order after having purchased an SMS ticket, control personnel can check via the central computer whether or not a ticket was delivered to the passenger’s mobile.

Promoting the SMS ticket

As was the case for the launch of the pre-sale network in 2006, popular comic figure Cordelia is also the face of the new promotion campaign. Cordelia appears on all communications material designed to raise enthusiasm among passengers for the new system. Around 2,800 bus and tram stops in Antwerp and Ghent were equipped with a poster and a sticker displaying the order code, and the SMS number also featured on the timetable board. De Lijn made extensive use of banners on the back of 75 buses, as well as inside all vehicles in both cities. A folder about SMS ticketing can be found in the vehicles, De Lijn’s own points of sales, and the info columns of the communes that are part of the two cities.

No more small change

The first results are already very promising. Tested amongst a closed user group of 178 trial passengers, 91 per cent were satisfied with the system. It’s important to note that SMS ticketing has been accepted across all age groups. And most importantly, above all it is the ticket passengers who are most happy about this new pre-sale avenue. In fact, nine out of ten trial passengers said they would continue using SMS ticketing. De Lijn will evaluate the system in December, and given a positive report, SMS ticketing will be expanded to cover the rest of Flanders in the spring of 2008.