Australians could be enticed to avoid travelling on packed and congested public transport during peak times with offers of incentives including rewards like restaurant vouchers and relevant merchant offers, according to a newly published study.
The survey of 1,000 Australians across the country by Mastercard also reveals that incentives such as flexible work arrangements and lower off-peak fares would encourage travel outside peak times.
According to the study, when it comes to the use of public transport at peak times, 74% of commuters would consider an offer or an incentive to avoid travelling during this time – and among existing peak time users of public transport, half (55% would consider travelling off-peak if rewarded with points and merchant offers.
The study also found that:
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- 45% of Australians say that public transport is very accessible and a further 35% say that it is reasonably accessible in peak hours
- 74% of Australians would use contactless payments when using public transport if guaranteed the best fare: (79% Millennials, 65% Baby Boomers); (82% in WA)
- 56% of public transport users travel during peak times: (967% Millennials, 60% males,93% work commuters, 45% in WA)
- 65% are comfortable for organisations to use anonymous data to enable cities to become more efficient and sustainable: (70% Millennials, 62% Generation X, 63% Baby Boomers)
- 68% of respondents list avoiding parking as the main benefit of public transport
“There’s an increasing pattern of migration to city centres around the world, and Australian cities are certainly not exempt as our lifestyles and the types of work we engage in evolve,” says Doug Howe, vice president of travel and transit development, Mastercard.
“As urban areas begin to swell, leveraging technology to plan and build smarter cities will ultimately improve quality of life.”
Howe cities United Nations reports anticipating almost 705 of the world’s population will live in cities by 2050, putting pressure on cities to meet the rising demand for housing, water, transport, education and other services.
According to Howe, MasterCard is combining data-driven insights with innovative technology to make cities more inclusive, safe, resilient and sustainable.
“Combining commerce insights with transit insights helps planners and developers better understand the purpose of travel, and the relationship between how people travel, buy, and consume services. In turn, this can guide investment decisions that help shape demand for services that will benefit both cities and citizens,” Howe said.
The Mastercard Australian customer study reveals that when asked what customers consider before choosing their mode of transport, the purpose of travel rated the most highly with 45%, after other time related considerations such as travel time – while cost of alternative modes of transport was a consideration for only 30% of customers.
“Transport and congestion are just one pain point, but with the data accessible in the digital age, including payment data, there is an opportunity for private and public sectors to collaborate to prepare for future growth.,” Howe notes.
“Together we can create cities that are more efficient, welcoming and sustainable, which will better enable citizens to live inclusive, rewarding lives.
“Transport efficiencies are not just related to networks; changes to the way Australians pay to use roads and public transport are creating more seamless user experiences.”
According to the research, of the 90% of Australians that drive a car at least weekly, more than half (51%) have an e-toll pass in their car (66% in NSW/ACT, 53%in Vic/Tas - while 68% in QLD, SA and WA do not have e-tolls - creating easier pass through to reduce congestion around toll points.
For public transport users, the preferred method of payment is currently the public transit card (71%). However, 74% said they would use their debit or credit card to make a contactless payment, if it meant they were guaranteed the best fare.
Mastercard touts the fact that using a contactless debit or credit card to Pay As You Go (PAYG) for transport services avoids the need for consumers to queue – and this has proven to be “very popular in cities like London with around 40% of customers choosing to use a contactless debit or credit card, as they are guaranteed the best fare”.
“Given the choice between using a mobile phone pay-as-you-go app or a public transit card, 37% of Australian respondents said they would prefer the mobile phone app with Western Australians particularly keen to embrace digital payments with transport, where over half (52%) have indicated mobile app would be their preferred payment method,” Mastercard says.
And, in the UK, Mastercard says using mobile phones to pay for public transport is already starting to increase with approximately 8% of contactless payments at Transport for London (TfL) now being made on a mobile or other device. In addition, since December 2015, more than 25 million journeys have been made using mobile devices within the TfL network and Mastercard says the number continues to grow by around 10,000 extra devices per week.
“We’re already seeing ways technology can change a city for the better. And as populations shift we need to continue to look to technology as a means to a better quality of life, better jobs, better services, smarter cities.
“Cities mix ideas and people in a unique way and are powerful platforms for innovation and economic vitality – they are central to reviving and sustaining global growth, hence the need to get urbanisation right,” Howe said.