RSSB2632 - T1134 Understanding drivers that impact travel choice - Supplier Day - Thursday 10th 10am -12

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RSSB is holding a Supplier Day on Thursday 10th August from 10-12 here at our London Offices. If you would like to attend please email shareditt@rssb.co.uk by 5pm on Wednesday 9th August confirming your attendance. Please be sure to read the available attachments that are attached to this Contract Notice. -- In the last 20 years, the rail industry has seen continued growth, journey numbers have doubled, and this has allowed the proportion of subsidy from government to be reduced over time. However, there are now early signs that this is beginning to change. Whilst still growing, passenger revenue in the last year increased by 2.5%, compared to an average over the last 20 years of 6.8%. With total passenger revenue amounting to approximately £9.5Bn annually, the change can have large implications on passenger operator franchising agreements and ultimately on the Treasury's budget. Whilst this decline in growth can, at least in part, be explained by traditional economic factors, such as a GDP, fuel prices and rail fairs, the change is larger than forecasts using best practises for the rail industry. It is hypothesised, that these unexpected differences are a manifestation of the major and rapid changes facing our society, which are starting to have an important role in travel demand. A scoping study commissioned by RSSB and carried out by KPMG has explored a long list of current and future trends that could impact rail, and identified six major themes that have the potential to make a significant impact on both travel demand in general and on rail's competitive position within the domestic travel marketplace. These key themes are: 1. Changes to the structure of the economy (e.g. flexible working, automation) 2. Socio-demographic structure (e.g. aging population, urbanisation) 3. Alternatives and substitutes to travel (e.g. virtualisation, 3D printing) 4. Price, quality and availability of transport (e.g. autonomous vehicles, hyperloop) 5. Integration between modes (e.g. personalisation, mobility as a service) 6. Policy and regulation (e.g. demand management and charging, regulation) This qualitative study has made recommendations for the next steps industry could take to develop an approach to understanding the key drivers that impact travel choice, including: • A further exploration of the key themes identified, utilising existing data sources and analytical methods to quantitively assess their range of expected impacts and associated timescales. • Building a better picture of the trade-offs that customers make by: o Understanding travel choice at an individual level, utilising technology to collect better information about a passenger's specific end to end journey choices.