CellPoint Mobile has released a new industry outlook report: “UK Rail 2019: Mobile-First Revenue Generation for Passenger Transport and the Future of Mobility.” The report offers an overview and analysis of the UK rail sector and informs industry stakeholders — including government agencies, owning groups, bid teams and train operating companies – about new opportunities for mobile technology to cut costs, increase existing capacity and generate ancillary revenue.
“With the explosive growth of mobile ecommerce, mobility-as-a-service (MaaS) and digital travel planning, UK rail operators have a unique opportunity to use mobile solutions to remain competitive and relevant,” said Jesper Harrishøj, SVP and head of sales for ground transportation at CellPoint Mobile. “This report will help UK rail operators understand how mobile solutions can solve problems at the traveler experience level – such as peak capacity overcrowding — and create ancillary revenue opportunities throughout the passenger journey.”
Toward a Truly ‘Digital Railway’
The UK rail sector represents the world’s oldest passenger railway and one of Europe’s most complex transport systems. Each year, according to the Office of Rail & Road, UK rail stations handle 2.9 billion entries and exits. This increasing volume of passengers is often poorly served by legacy and cash-based booking, ticketing and payment systems that are outdated, inefficient, not user friendly and costly to maintain.
More rail operators are leveraging passengers’ smartphones as digital assistants, making it easier for passengers to plan, pay for and manage travel across multiple modes of transport. Transaction hubs and APIs are making it easier for travel and transport operators to share revenue opportunities throughout the journey – for example, when customers are parking at the station, riding to the next station, buying a coffee, hailing a taxi or boarding a ferry.
Key takeaways from the UK Rail 2019 report include:
- How mobile-first approaches to booking, ticketing, and payment can significantly increase the perceived value of UK rail as a mode of transport.
- Why a mobile-first approach to UK rail is not about finding a “magical” technology solution.
- How legacy ticketing and payment systems render a passenger invisible (digitally speaking) to the rail operator.
- How new technology on the passenger side, including support for mobility-as-a-service (MaaS), can help operators incentivize off-peak travel through real-time discounts and rewards.
- Why the UK rail sector could become more prone to friction as passenger demand grows and there is little innovation on the consumer side of sales and revenue – for example, not supporting popular alternative payment methods (APMs) and mobile wallets.
“To understand the mobile opportunity in UK rail, consider that utilisation of spare capacity in off-peak times is a holy grail for most operators, because there are few practical solutions,” said Mike Lambrou, VP, UK sales for CellPoint Mobile. “With mobile technology solutions, rail operators can now deliver more personalized (and profitable) offers for off-peak travel through passenger smartphones, making them feel informed and valued and driving extra ancillary revenue for the operator.”
