Thursday, 4 June 2009

Concessions & Fares—a study

Sometimes, the Comments attached to this blog’s posts box take unexpected twists. Under the recent post No Room for Sentiment about the demise of yellow open tops in Bournemouth was a comment about concessionary fares on the Isle of Wight, related to the removal (by the council) of free travel on the noted Southern Vectis Island Coaster bus route-come-tour.

As for many bus operators, concessions are an issue. The Isle of Wight council has reduced its reimbursement from about 75p in the pound in 2006 to a little over 45p, based on an average adult fare.

At the same time, in spite of four seasons’ worth of growth on the trot, the Isle of Wight bus market remains highly seasonal, much more so than its “neighbours” across the Solent. When the sun comes out, so do the passengers. This brings with it a whole new meaning to the term ‘peak vehicle requirement’, something dominated by the need to provide enough capacity every day in case of scorching weather. The media have been predicting a bumper tourist summer this year but bus operators in tourist areas—especially in places like IW—have to register by the end of January the service they feel will cope (for Easter). What, then, if weather or recession puts paid to general island tourism? Over capacity and unnecessary costs result.

This, then, partly explains why SVOC single fares are above average, to balance occasional sunny day travellers, something SVOC’s blog likens to the difference between expensive pay-as-you-go mobile tariffs versus the discounts and deals you get for a longer term contract. Estimates suggest that visitors represent about 20 per cent of travellers. And, of course, it would be foolish of SVOC to disregard concessionary travel. Free travel has a significant impact on fares policies and here lies the other reason for single fares as they are.

That said, it’s by no means necessary to buy a £10 day ticket for many journeys on the island. With a £4 maximum single fare, this is still £2.50 cheaper than it was three years ago. Also three years ago, a reduction in the seven-day season from £35 to £20 saw an 11-fold increase in purchases.

i This and more has been the subject of From the Driving Seat, the official SVOC blog

5 comments:

Venturer said...

The more general point, about the costs of operating open top services generally, remain the big issue, surely?

The Yellow 12 was a pure summer operation whilst the Wilts X12 and 50 are both year round operations which have/do use open top vehicles for part of the year.

Seasonal services are more likely to be excluded from the Concessionary fares schemes, and are therefore bound to be put under closer scrutiny as all revenue has to come through the farebox. With higher operating costs than a 'normal' service and the possible devastating effects of poor weather, I predict a decline in open top services in future years - possibly even on the Isle of Wight.

Anonymous said...

Open Top Services and Open Top Tours are two different things. Tours with a high price are much better able to whether the weather (sorry for the pun). I see SV charges £10, so the average number of peole on a tour to break even is presumably about 3!!!

A good day with well loaded upper decks pays for many a poor day at those break even rates.

THe problem with free travel is that it actually wrecked that belance, as on sunny days when the upper deck would be full of £10s, it could be packed with free passengers at a fraction of that amount.

Anonymous said...

I DID NOT NOT REALISE THAT LOCAL COUNCILS CAN REMOVE CONCESSIONS.ITS A NATIOAL SCHEME AND THESE DECISION ARE THE PRERROGATVE OF THE DOT SURELY.IF THR TREND OF WITHDRAWING CONCESSIONS CONTINUES I HAVE VISIONS OF OAPS SHELTERING UNDER THEIR UMBRELLAS WAITING FOR A BUS WHICH MAY OR MAY NOT BE FREE.

cold head said...

No, the rules were amended from April to exclude among others Tourist services, P&Rs, and servies registerd as buses where 50% of seats are bookable
http://www.direct.gov.uk/en/TravelAndTransport/Publictransport/BusAndCoachTravel/DG_10036264

Councils may add non compliant services should they desire for local residents.

Anonymous said...

Trouble is with most traditional seasonal open-top services, by the time most people in the tourism sector get used to them being there, you're withdrawing them...