Dr George McLean Hazel OBE george.hazel@mrcmh.com Investing In - - PowerPoint PPT Presentation

Dr George McLean Hazel OBE

george.hazel@mrcmh.com

Investing In Better Places, Edinburgh 22 March 2011

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World Trends

Mapping trends leading to Complete Mobility

 Complex trips  Consumer  Congestion  Enabling

Technology

 Gov. Policy

Definition Element

 Globalization  Urbanization  Land use  Ageing  Workforce participation  Smaller households  Affluence  Consumer culture  Motorization  Congestion  Env. awareness  Infrastructure spend  ICT availability  Governance  personalized  options  informed decisions  simple  mode neutral  Information and

communication

 personal connectivity  physical and virtual

integration

 coordinated transfer  “zero-wait state”  trusted services  perceived value  make a difference  transparent value

proposition

 payment mechanism  attractive mobility

package

 End-User

Focused

 Seamless  Value

Trends

Influencing Factor

Attribute

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Complete Mobility Index

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Potential of Complete Mobility

• A system that goes with user demand and

trends and is politically deliverable

• A system that delivers individual mobility

packages to every user – personal and business

• A system that delivers significant new revenue

streams through value added services, stored value, increased ridership, advertising, etc

• A system that delivers travel demand

management but through choice, incentives and value pricing not coercion

• A system that delivers strategic objectives

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Technology and retailing principles make Complete Mobility possible

Technology and retailing trends

Mobile Phone Travel Information

Travel planning applications have been launched for smart phones such as the iPhone Real time information and route planning on:

• London underground & bus
• Edinburgh BusTracker
• UK national rail service
• MetrO (cities worldwide)

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Provides information that is:

• Free
• Adaptive & Easily Updated
• Personalised
• Easily accessed on arrival in city

Amsterdam electric bike

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Nice, France Smart Infrastructure

Octopus Card, Hong Kong

• Integrated mobility

card payment system

• Branded revenue from

transport, security and retail services £1.3 Bn (2004) £3.3 Bn (2013) p.a.

• Used for travel,

security, dining and shopping in Hong Kong

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The challenge and the

• pportunity

Market segmentation

• pens up 100% of

the market

Die Hard Drivers

• Strong emotional and physical attachment to the car
• Admit to strong habitual car use
• Not willing to use alternative modes or pay extra for car use
• Admit there may be alternatives but do not want to use them

Keen on „technical‟ solutions such as smart cards (w/o carbon credits) & real time information. Some enthusiasm for car clubs. „Early Adopters?‟ Negative about car sharing.

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The Transport Retail Model

The challenge and the

• pportunity

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The Three Key Elements of the Transport Retail Model

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The New Mobility Model

Other data Policy TRANSPORT RETAIL MODEL

Brings together data and policy requirements in tailor made incentive and charging packages

Usage data Scheme Board with partners

Including operators and commercial partners

Applications

Transport Health Retail Venues Etc Electronic transactions via smart cards or

• ther device – all

voluntary

Offer Channels

Online, SMS, Council services, private sector

The TRM Business Process

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Commercial revenue Time

create asset sweat asset

strategy focus

maintain asset

Increase app base (valuable targets) Added value services to segments Redefine retail channels to targets Develop commercial & marketing

• rganisational

capability Define future supplier contract terms

• f reference

Geographical and segment based campaigns Horizontal applications to targets (incentive based offering) Yield management Re-launches with new technology

Incentives – Loyalty One in Canada

‘Loyalty One profitably changes consumer behavior. We work with more than 100 of North America's leading brands in the retail, financial services, grocery, petroleum retail, travel, and hospitality industries. Together, we collaborate to create lasting loyalties that benefit you and your customers’. TTC trial showed 57% increase in public transport use!

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Spitsmijden, Netherlands – incentives to reduce peak traffic

■ Pilot project ■ Paid participants to travel

by public transport or out

• f peak time

■ Used smart phones to

provide information and cameras to enforce

■ Discounts and PTP type

advice

■ Business card ■ 20-50% change away

from peak car use

Incentives – Trent Barton Buses Mango card

Getting in on the ground floor New homeowners in Trent Barton territory are being welcomed with a complimentary MANGO card charged up with £20 worth of free travel in a drive to win new converts to the bus.

Incentives - West Midlands Workwise

■ Targeted at unemployed

people living in certain postcodes

■ Free one day travel

passes for interviews

■ Free monthly travel passes ■ Information on travel ■ Funding from Job Centre

Plus and others (up to £240 per person) “Over the past few months, I have

been looking for employment and have had assistance to „travel to interview‟ through the WorkWise

• scheme. This help has been essential

as I have no other means of transport and have relied on the bus passes available…without this assistance I would not have been able to attend interviews and ultimately obtain a job.” Anthony, North Solihull WorkWise customer

Octopus Card, Hong Kong

• Integrated mobility

card payment system

• Branded revenue from

transport, security and retail services £1.3 Bn (2004) £3.3 Bn (2013) p.a.

• Used for travel,

security, dining and shopping in Hong Kong

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Toronto Cafe – providing service and improving trade!

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• Understand your city region
• Understand your users
• Accept the trend towards Complete Mobility
• Sort the governance and funding
• Develop your strategy towards Complete Mobility
• Agree the future vision, break it down

incrementally and start building on what you have

• Develop new business models with key partners
• Control and secure the funding opportunities
• Identify a pilot project now

Claiming the future

Dr George McLean Hazel OBE

george.hazel@mrcmh.com

Investing In Better Places, Edinburgh 22 March 2011

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