Mobile ticketing

From Wikipedia, the free encyclopedia

Mobile ticketing is the process whereby customers can order, pay for, obtain and validate tickets from any location and at any time using mobile phones or other mobile handsets.

This development reduces the production and distribution costs connected with traditional paper-based ticketing channels and increase customer convenience by providing new and simple ways to purchase tickets for all sort of events.

Mobile Ticketing for public transport

European public transportation is about to be revolutionised by the arrival of new electronic ticketing systems that are expected to be more convenient, faster and more cost efficient. Mobile ticketing is one of the most promising areas of digital transactions for occasional travellers. Tickets can be purchased directly with mobile phones and they are delivered to mobile terminal by SMS (short) message. The customer sends a simple code as an SMS message (e.g. GV for a single adult ticket in Gothenburg, Sweden) to a service number and after a few seconds he/she receives a mobile ticket including validity information as a return SMS-message. Different ticket types can be ordered with a different code (e.g. GU for a youth ticket or GN as a night tariff ticket in Gothenburg). The use of different ordering codes enables creating a variety of ticket types, either time- or distance based pricing and different zone systems. No registration or giving of any personal information is needed for using the service and all mobile phone models can be used. Whereas registration is accepted when using smart card as a frequent public transport user, it is for most people an unacceptable requirement when buying a single ticket as an occasional traveller. There are instruction signs and posters on the stops and stations for the passengers of how to use the service. Mobile ticketing eliminates the need to carry cash for ticket purchase. The ticket price is invoiced from the customer by the telecom operator in conjunction of the monthly phone bill or directly debited from a pre-paid account. The telecom operators who have signed an agreement with the transport company can offer the service to their customers. As there is no pan-european payment system available, it would imply also cooperation and agreements with telecoms internationally to be able to offer mobile ticketing service for tourists. The telecom operator accounts the ticket revenue monthly to the transport company, who in turn pays a share for the telecom operator for its services, i.e. invoicing the customers and message traffic. Clearing can be handled by using different short numbers and ordering codes for different ticket types. A closed traffic system with gates can be considered as a restriction for mobile ticketing, as the existing technology doesn’t allow opening gates using mobile phones. But anyway, the increased demand for security, single ticket sales booths and special customer groups like the disabled using wheelchairs, parents with baby prams, tourists with several pieces of luggage require access into the vehicles around the gate system, require always some personnel at the gates, who are able to visually validate mobile tickets and allow access for the small share of customers using single mobile tickets. Security has been a major challenge in the mobile services industry. Plusdial’s solution is based on a patented security control code system with which the inspectors can check the validity of the ticket with naked eye without carrying any devices or needing to contact back office systems, making ticket inspection is very efficient and fast.

Helsinki Travels with Mobile Tickets

Helsinki City Transport started both e-ticketing solutions, the smart card and mobile ticketing in 2002. They have already delivered over one million travel cards to the travellers and over 9.500.000 mobile tickets have been sold in Helsinki. Helsinki City Transport is offering also a disposable smart card as a tourist day ticket. The total cost of disposable smart card is as high as 53c of a 2 euro ticket, making it a too expensive way to sell single tickets, compared to selling costs of paper ticket (29c) or a mobile ticket (29c). The mobile ticketing service has expanded during the last years from trams, metro and ferry traffic to also commuter trains and several bus lines in the city area. The ever popular service has won several awards in Finland for being innovative, highly accessible and well-liked among passengers. Customer surveys show that as many as 89 % of the users consider the mobile ticketing as an excellent service. Still, after five years, mobile ticket sales are steadily growing, and the service has been established as a significant part of Helsinki City Transport ticket offering. As large a share as 55% of single tickets in the Helsinki trams are sold via mobile phones.

Transport Company Benefits

Mobile ticketing is a complementary system to smart card, offering an e-ticketing solution to occasional travellers using single tickets, whereas smart card is an e-ticketing solution targeted to regular travellers and commuters using season tickets. Mobile ticketing increases ticket sales by offering passengers a convenient way to buy tickets anytime, anywhere. According to the customer survey 40% of the mobile ticket users wouldn’t have bought a ticket at all, should the service not have been available, and as many as 20% would have travelled, but without a ticket. Evidently, fraud can be decreased by either by increasing control, gates, penalties etc. or by making it easier for the customers to buy a ticket. Also according to the survey the biggest reason for buying a ticket by using a mobile phone is lack of cash, meaning that traditional ticketing options cannot fulfil all the needs of the travellers. Mobile ticketing is not only a complementary sales channel, but brings incremental ticket revenue, which generated Helsinki City Transport one million euros extra profit in 2005. A transport company does not need to make equipment investments as the service is delivered via mobile terminals of the end users and there is no need for any other hardware, terminals or software to be installed or maintained. Mobile ticketing reduces the total costs of ticketing by reducing printing, distribution and cash handling costs of traditional paper ticketing. Cash handling costs can easily amount to 3-4% of ticket revenue. It also reduces the need to invest for vending machines and cuts back maintenance and vandalism costs. Of course vending machines are still needed, but the number of equipment can be reduced. Especially in situation when new vending machines are needed or old equipment need renewal, 30% fewer machines mean 30% cutback in costs and investments. Mobile ticketing develops public image of Transport Company by enabling a launch of a modern, customer friendly and environmentally sustainable ticketing system in a short period of time. Furthermore, mobile ticketing makes transportation faster if less people are buying their tickets from the driver, increasing thus also security among personnel and passengers as there is less cash in the vehicles. The product-like mobile ticketing service means cost effective operation with a customized solution for the technical and functional environment of the transport company.

Towards Europe

Now, having earned its spurs in Helsinki and proven to be a highly reliable ticketing system with high user volume, Mobile Ticketing has started to expand in Europe. Public Transport Companies in Sweden were the first ones to take on the new system. Länstrafiken Mälardalen, and Västtrafik have introduced the service in their city traffic areas. The first international launch was in Örebro, Sweden, on October 16th, 2006, followed shortly by Västerås, Borås, Gothenburg and Eskilstuna. In ten days from launch the share of mobile tickets was already 10% of all cash single tickets in Örebro. In Stockholm the service launches on Jan 1st, 2007. In e.g. Germany, Belgium, Italy and the U.K. project plans have progressed well and hopefully soon will millions of passengers in several European cities with modern transport companies be able to just dial a ticket and move on!