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Developments and projects of eTicketing for European public transportation

Posted: 11 November 2008 | Hansjörg Röhrich, Vice Chairman, Kontiki Working Group | No comments yet

When Thor Heyerdahl decided to cross the Pacific Ocean from South America to Tahiti in 1947 in order to prove that what had hitherto been considered impossible could indeed be true, he named his balsa raft Kon-Tiki. Many years later, this name was perfect for reviving the same ideas in the world of electronic fare management: the idea of exploring the possibilities and applications of contactless ticketing in the future.

Within an unbelievably short period of 10 years (as long as the Working Group Kontiki has been in existence) electronic fare management (EFM) has successfully advanced into nearly every area of our society. To be sure, the founding idea of the Working Group Kontiki was to bring card manufacturers, banks, system integrators and producers of background systems together on a national level for an exchange of experiences and standards in order to find the best possible solution for contactless ticketing in many different areas of life. Thus, today we naturally think of European-wide solutions. The requisite applications have been developed and implemented in European countries at a varying pace. Whether VDV Core Application (Verband Deutscher Verkehrsunternehmen), ITSO, Calypso, among others – they have all contributed to keeping the round table within a European context.

When Thor Heyerdahl decided to cross the Pacific Ocean from South America to Tahiti in 1947 in order to prove that what had hitherto been considered impossible could indeed be true, he named his balsa raft Kon-Tiki. Many years later, this name was perfect for reviving the same ideas in the world of electronic fare management: the idea of exploring the possibilities and applications of contactless ticketing in the future. Within an unbelievably short period of 10 years (as long as the Working Group Kontiki has been in existence) electronic fare management (EFM) has successfully advanced into nearly every area of our society. To be sure, the founding idea of the Working Group Kontiki was to bring card manufacturers, banks, system integrators and producers of background systems together on a national level for an exchange of experiences and standards in order to find the best possible solution for contactless ticketing in many different areas of life. Thus, today we naturally think of European-wide solutions. The requisite applications have been developed and implemented in European countries at a varying pace. Whether VDV Core Application (Verband Deutscher Verkehrsunternehmen), ITSO, Calypso, among others – they have all contributed to keeping the round table within a European context.

When Thor Heyerdahl decided to cross the Pacific Ocean from South America to Tahiti in 1947 in order to prove that what had hitherto been considered impossible could indeed be true, he named his balsa raft Kon-Tiki. Many years later, this name was perfect for reviving the same ideas in the world of electronic fare management: the idea of exploring the possibilities and applications of contactless ticketing in the future. Within an unbelievably short period of 10 years (as long as the Working Group Kontiki has been in existence) electronic fare management (EFM) has successfully advanced into nearly every area of our society. To be sure, the founding idea of the Working Group Kontiki was to bring card manufacturers, banks, system integrators and producers of background systems together on a national level for an exchange of experiences and standards in order to find the best possible solution for contactless ticketing in many different areas of life. Thus, today we naturally think of European-wide solutions. The requisite applications have been developed and implemented in European countries at a varying pace. Whether VDV Core Application (Verband Deutscher Verkehrsunternehmen), ITSO, Calypso, among others – they have all contributed to keeping the round table within a European context. Both smart card technology and, for some time now, payment with mobile devices have been advancing non-stop. Local public passenger transport is also using the new technologies. Above all, this use is in the interest of passengers. Complex fare and distribution systems, an intransparent system of different methods of payment (vending machines, bus printers, self-service validating machines, etc.) scare passengers away from public transport. They feel insecure in an unfamiliar system without much support. The need to have extensive knowledge of local public transport systems nationally and internationally is an access barrier for every passenger. This insight early on led experts from many countries to join forces in UITP (International Association of Public Transport) in order to work gradually toward harmonising the different systems currently in use. Nobody expects that past and current investments – as high as two to three-digit million figures – will give way to a universal European ticketing system overnight. Nor is this the goal. It is much more about establishing the principles for creating a universal platform in European countries for the new technologies that are hitting the market in ever shorter intervals. The breakthrough of standard 14443 for contactless ticketing was thus a milestone in the use of contactless ticketing. Other standards will follow, particularly in connection with payment by smart cards and mobile devices. The delay in implementing electronic payment or electronic ticketing in local public passenger transport is due to the structures, which are totally different in each European country. While in France, Italy, and Spain, to mention just a few, the impetus came from the large cities equipped with electronic fare management, German-speaking countries have so-called transit authorities. Here they have been successful for decades in implementing what has only been possible in Romance-speaking and Scandinavian countries with the ascendancy of eTicketing. The advantage of one pricing system and one ticket with the use of all transport mediums in one clearly demarcated region has been implemented in such a way in most German federal states that the need for electronic fare management was initially recognised too late. But today the awareness exists that the electronic smart card could set off a revolution in local public transport. For many years, local public transport has been limited to its original segment, the transporting people. This challenge alone, taken on by the transit authorities, no longer suffices for today’s passengers. In an age in which electronics have redefined nearly every aspect of society, it is essential that local public transport embrace these emerging fields. Nowadays, fast and uncomplicated payment, information which is available at any time and at any place are essential conditions for survival on the market. Many European countries have recognised and implemented these requirements. In the process, despite all the differences in their approaches, they have never lost sight of the common goal of placing passengers in the centre of market developments and serving them with the greatest possible comfort. This makes it clear that electronic fare management not only replaces new distribution channels, but is also a key point in the marketing strategy of every company. Thus, for example, the Scandinavian countries Sweden and Norway are attempting to merge local public transport and road traffic into an integrated traffic management and have already mapped this out. The pricing scheme for road-use charges can be read from a map and in the future will also be applied to local public transport in these countries. The pressure of economic conditions on society, for instance, the vicissitudes in natural resources, makes it essential for local public transport to come up with new answers in these areas. Nobody disputes that local public transport is one of the most environmentally friendly options for transportation. In this case, the combination of economy, market, and comfort makes the smart card attractive. As a result, the emphasis is no longer solely on the smart card. Other options alongside electronic fare management are Web shop, Ticket to print, mobile phone ticketing, and 2D barcode. As a result of the many different options emerging in an increasingly electronic world, customers must be given a clear idea of what options they have. Too many options in electronic distribution could overwhelm customers as existing vending machines already do and once again set up a barrier to local public transport. The obvious guidelines must be:

  • Easy use of device
  • Meaningful use of device
  • Awareness that electronic ticketing provides passengers of local public transport with a more fair treatment
  • Possibility of multifunctional applications
  • Other future possibilities for an integrated use in domestic (individual) and public transport

Admittedly, these are distant goals. Yet the few existing examples show that they are not utopian. Densely settled areas such as Paris, London, Rome, among others, have already been forced in their infrastructure to transport passengers as fast as possible from A to B. Speed is complemented by comfort and holds the possibility of tapping into new market segments. The RATP (Régie autonome des transports Parisiens), to mention just one example, has made this clear with the implementation of Calypso. Here the smart card can be used in their stations as a means of payment at kiosks, bakeries, beverage vending machines, and so forth. The possibilities in this area have by no means been fully explored. Beyond products themselves, the multifunctionality of the card can realise a high profit. If we look at our colleagues in Asian regions, for example Hong Kong or Japan, smart cards here are naturally used as a means of payment in all types of businesses. Here the original transport company takes on the function of a holding company divided into several segments with which the non-local-public-specific forms of payment in part generate more fiscally than local public transport itself. The resulting market developments and market options are practically unlimited, especially since the Internet allows for wider application and expansion. On the other hand, the Internet itself has been a driving force behind new developments in the area of ticketing. This in itself inevitably holds a danger and namely that when implementing new eTicketing systems we always resort to the most state-of-the-art system. This, of course, may be a fallacy, for the result is that we are always running after development. It thus makes sense to update an existing system on a regular basis, and in practice, this is what most European countries do. This guarantees the long-term comfort and reliability of the entire system and also delivers the effects expected from an entire system. To support and encourage the convergence of these developments, an international exchange between countries is more important than ever today. Despite all the differences in internal structures, there is a uniform direction with regard to the further development of the coming generation of eTicketing systems. It will be important to remain in contact with Great Britain as well as with Scandinavian countries, France, Spain and Italy. It is also worth mentioning that East European countries such as Bulgaria, Czech Republic, Slovakia, and Hungary are willing to embrace the new technologies and to implement entire systems. They should and must also be included in the dialogue. The process initiated by UITP will thus gain more importance in the future in exploring the possibilities of standardised EFM systems. The first steps have already been taken and the high level of response shows that every country recognises the importance of these issues. Organisations such as CLUB International (Contactless User Board), CLUB Italy, InformNorden, TCF, Transport Card Forum, and Kontiki will be working together more closely in the future and exchanging their strategies and ideas. Electronic fare management and relevant markets belong to the future, not only in a few European countries but in a united Europe that must develop together.

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