Explore Connected and Cooperative Mobility
Urban Mobility Portal
Explore Connected and Cooperative Mobility
Hassle-Free Event Experience
Many large cities are characterized by heavy traffic during daily rush hours, which becomes worse when large events, such as football matches or concerts, are held in premises located in or close to city centers. One of the measures to counter this problem is to endorse the use of public transportation. However, addressing this challenge involves a collaboration between a large variety of stakeholders, both of the public, the private and the individual kind. A blueprint design for such a business model is depicted above.
Business model blueprint
In this business model blueprint, the targeted value-in-use for the event visitors is a hassle-free concert experience. Hassle-free implies that by taking public transport to an event instead of travelling by car, the event visitor benefits from not having to worry about waiting in traffic, dealing with congestion or parking the car at the location, whereas the visitor can experience more freedom at the event location. To facilitate that, the service provider assesses the current and near-future traffic conditions at large events. Based on these conditions, the service provider offers free (or with increasing discounts based on the traffic data) public transport tickets with the aim to stimulate visitors to use a different mode of transport and reduce traffic at and around the event location. This is accommodated by a travel advice with regards to connections between modes of transport, trip duration and expected departure and arrival times. Mode & trip time advice (e.g. by incentives) aims to provide a traveler with an itinerary for a multimodal passenger transport journey, considering real-time and/ or static multimodal journey information.
In this business service scenario, the traffic authority (acting as a public service provider) incurs software costs paid to the software provider to operate the service. In return, the traffic authority (as a representative of the municipality) is able to benefit from decreased pollution, increased road safety and improved traffic efficiency. As public transportation is motivated, the public transport operator benefits from increased revenues due to increased travelers, which in turn may benefit the image of taking public transport as a suitable travelling alternative. Through offering reduced rates for early public transport tickets, event visitors can be stimulated to arrive early at the event location. Profile data of event visitors can be used by retailers to customize their offerings to become more appealing. They can offer pre and post experience through customized goods and services based on the profile of the visitors. Retailers benefits from increased (attention of) customers, whom moreover can spend more as public transport tickets are offered at reduced rates. Part of these increased revenues can be invested in ensuring that the business model is financially feasible (e.g., covering for discounts on public transport tickets). The software provider is tasked with ensuring that the platform required to operate the service is deployed and maintained.
Advertisers can be included as an enriching party to financially support the business model. Ads of the respective advertisers can be included for the service application, generating visibility for the ads when the service is used. In return, advertisers may further reduce the ticket prices for event visitors (stimulating the use of the service). The event provider is responsible for hosting the event, for which the service solution is catered. As the service solution may enhance the full customer experience for the event, the event provider can be stimulated to further support offering the service (through incurring costs of providing a financial contribution towards offering the service). As a result, the event provider benefits from increased image, as event visitors would enjoy a hassle-free experience, as well as increased customer satisfaction.
Business model viability
Viability of the business model blueprint is strongly dependent on the number of service users as well as the modal shift generated through use of the service. Accordingly, reducing the ticket price of public transport (through the collaborative efforts of the retailers, event provider and advertisers) to stimulate the service use is essential. Considering the increased revenue and customer experience expected for the retailers and event providers, increased compensation for these parties can be pursued (as opposed to the advertisers). As the user base increases, particularly the resulting modal shift, the effects for the traffic authority are sufficiently large to offset the operating costs incurred for deploying and operating the service.