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Challenging Our Preconceptions - pt 1 of "A Market-Focused Paradigm for Public Transit"

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This is the first in a series of presentations that deals with the question: how can we make public transit systems more effective at attracting new riders and shaping urban regions? Alan Hoffman, an …

This is the first in a series of presentations that deals with the question: how can we make public transit systems more effective at attracting new riders and shaping urban regions? Alan Hoffman, an internationally recognized expert in transit markets, discusses the findings of market research he has conducted or supervised, as well as his work advising cities and regions across the planet on how to improve their transit systems.

This first presentation addresses a number of preconceptions that even many professionals in the field have, and reports on the findings of research that suggest the need for regions to become far more sophisticated at how they understand the people they are designing and planning transit services for.

The Mission Group is a strategy firm that has helped many cities devise strategies to boost the long-term effectiveness of their transit planning so that they can set and achieve ambitious goals for transforming the role that transit plays in their regions.

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  • 1. 1A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. A Market-Focused Paradigm for Public Transit THE MISSION GROUP Part I—Challenging Our Preconceptions Alan Hoffman ▪ San Diego, California ▪ (619) 232-1776 ▪ info@missionconsult.com © 2013 by The Mission Group. All Rights Reserved. PART 1 1A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. A Market-Focused Paradigm for Public Transit THE MISSION GROUP Part I—Challenging Our Preconceptions Alan Hoffman ▪ San Diego, California ▪ (619) 232-1776 ▪ info@missiongrouponline.com © 2013 by The Mission Group. All Rights Reserved. PART 1www.missionconsult.com
  • 2. 2A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Why Do Cities Invest in Transit? “Reduce” Congestion
  • 3. 3A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Why Do Cities Invest in Transit? “Reduce” Congestion Improve Air Quality
  • 4. 4A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Why Do Cities Invest in Transit? “Reduce” Congestion Improve Air Quality Reduce Sprawl
  • 5. 5A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Why Do Cities Invest in Transit? “Reduce” Congestion Improve Air Quality Reduce Sprawl To accomplish these goals, transit must attract someone who would otherwise drive a single-passenger automobile.
  • 6. 6A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Why Do Cities Invest in Transit? “Reduce” Congestion Improve Air Quality Reduce Sprawl Increase Choices To accomplish these goals, transit must attract someone who would otherwise drive a single-passenger automobile.
  • 7. 7A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Why Do Cities Invest in Transit? “Reduce” Congestion Improve Air Quality Reduce Sprawl Increase Choices But Is It a Better Choice? To accomplish these goals, transit must attract someone who would otherwise drive a single-passenger automobile.
  • 8. How do you get someone to use transit? More to the point, how do you create the kinds of transit services that attract appreciable numbers of new riders?
  • 9. How do you get someone to use transit? More to the point, how do you create the kinds of transit services that attract appreciable numbers of new riders?
  • 10. Harvard Business School professor James L. Heskett studied how service-sector firms created “breakthrough” services that attracted new customers and improved firms’ bottom lines.
  • 11. 11A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs “Service Breakthroughs” occur when the inputs or resources used to produce a given service are redeployed in such manner that they dramatically increase the value of that service in the eyes of potential clients. JAMES L. HESKETT Harvard Business School Managing in the Service Economy JAMES L. HESKETT Harvard Business School Managing in the Service Economy
  • 12. Heskett identified four core strategic elements and three integrative elements that were behind the creation of service breakthroughs.
  • 13. 13A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Four Core Strategic Elements
  • 14. 14A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Target Market Segments Four Core Strategic Elements Which market segments represent a growth opportunity? How do you identify and reach them?
  • 15. 15A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Target Market Segments Develop a Service Concept Four Core Strategic Elements How do you plan to serve them?
  • 16. 16A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Target Market Segments Develop a Service Concept Formulate an Operating Strategy Four Core Strategic Elements What are the steps involved in service delivery? How and where do you cover your costs?
  • 17. 17A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Target Market Segments Develop a Service Concept Formulate an Operating Strategy Service Delivery System Four Core Strategic Elements What does the service actually look like on the ground? What do your routines and procedures actually look like when implemented?
  • 18. 18A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Target Market Segments Develop a Service Concept Formulate an Operating Strategy Service Delivery System Four Core Strategic Elements Three Integrative Elements
  • 19. 19A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Position the Service Target Market Segments Develop a Service Concept Formulate an Operating Strategy Service Delivery System Four Core Strategic Elements Three Integrative Elements How will you position and brand your service in the marketplace? How will customers understand the service relative to their other options?
  • 20. 20A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Position the Service Leverage “Value” Over Costs Target Market Segments Develop a Service Concept Formulate an Operating Strategy Service Delivery System Four Core Strategic Elements Three Integrative Elements What additional features can you offer at a profit?
  • 21. 21A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Service Breakthroughs Position the Service Leverage “Value” Over Costs Strategy/ System Integration Target Market Segments Develop a Service Concept Formulate an Operating Strategy Service Delivery System Four Core Strategic Elements Three Integrative Elements Does the reality of your experience match your theory or concept?
  • 22. The Mission Group helps clients understand how to focus on these elements so they can achieve their own ambitious goals.
  • 23. 23A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Elements of Strategy If your goal is to deploy transit so as to shape a region’s growth and provide a desirable alternative to driving, then you have to understand the relationship among four strategic elements.
  • 24. 24A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Elements of Strategy If your goal is to deploy transit so as to shape a region’s growth and provide a desirable alternative to driving, then you have to understand the relationship among four strategic elements. Market Behavior What segments of the market respond in what ways? Who Makes What Choices
  • 25. 25A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Elements of Strategy If your goal is to deploy transit so as to shape a region’s growth and provide a desirable alternative to driving, then you have to understand the relationship among four strategic elements. Revenue Drivers What dimensions of service create value for clients? Market Behavior What segments of the market respond in what ways? Leverage Value over Cost Who Makes What Choices
  • 26. 26A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Elements of Strategy If your goal is to deploy transit so as to shape a region’s growth and provide a desirable alternative to driving, then you have to understand the relationship among four strategic elements. Cost Structure Where are costs generated in the provision of services? Revenue Drivers What dimensions of service create value for clients? Market Behavior What segments of the market respond in what ways? Make Costs Work for You Leverage Value over Cost Who Makes What Choices
  • 27. 27A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Elements of Strategy If your goal is to deploy transit so as to shape a region’s growth and provide a desirable alternative to driving, then you have to understand the relationship among four strategic elements. Cost Structure Where are costs generated in the provision of services? Revenue Drivers What dimensions of service create value for clients? Market Behavior What segments of the market respond in what ways? Competitive Environment How well do competing choices create value for clients? Make Costs Work for You Leverage Value over Cost Who Makes What Choices Where to Gain Competitive Advantage
  • 28. Many public transit agencies find it hard to embrace a market focus because they are pulled in two different directions. But a focus on the market can help these same agencies identify projects that can reduce ongoing operating costs and boost revenues, as well as build their political base.
  • 29. Many public transit agencies find it hard to embrace a market focus because they are pulled in two different directions. But a focus on the market can help these same agencies identify projects that can reduce ongoing operating costs and boost revenues, as well as build their political base.
  • 30. 30A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Need of the Broader Market The Basic Market Trade-Off Save Time Save Time
  • 31. 31A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Need of the Broader Market Focus of Most Transit in U.S. The Basic Market Trade-Off Save Time Save Time Save Money Save Money
  • 32. 32A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Need of the Broader Market Focus of Most Transit in U.S. The Basic Market Trade-Off Save Time Save Time Save Money Save Moneyvs. Most U.S. transit systems are part of the social service system, providing mobility to those who can’t afford other options. In sustainable cities, transit is designed to meet the needs of a broader market, much of which leads busy lives and wants to save time.
  • 33. Einstein discovers that time is actually money.
  • 34. Many transit agencies turn to modal solutions to attempt to bridge the gap between their two markets. Does that always work?
  • 35. Many transit agencies turn to modal solutions to attempt to bridge the gap between their two markets. Does that always work?
  • 36. 36A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. How Do We Attract New Riders? One common strategy: Build light rail systems. …But does that always work?
  • 37. Case Study: San Diego’s Light Rail (Trolley)
  • 38. 38A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. 0% 10% 20% 30% 40% 50% Below $15k $15k - <$25k $25k - <$50k $50k - <$75k $75k - <$100k $100k and Up San Diego Transit Riders, 2009 MTS Bus Househo ld Income Source: SANDAG, “Results of the 2009 Onboard Transit Passenger Survey for the San Diego Region,” (February, 2011). MTS Bus riders are overwhelm- ingly low income.
  • 39. 39A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Commuter Rail attracts a much higher- income ridership. 0% 10% 20% 30% 40% 50% Below $15k $15k - <$25k $25k - <$50k $50k - <$75k $75k - <$100k $100k and Up San Diego Transit Riders, 2009 MTS Bus Commuter Rail Household Income Source: SANDAG, “Results of the 2009 Onboard Transit Passenger Survey for the San Diego Region,” (February, 2011).
  • 40. 40A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. 0% 10% 20% 30% 40% 50% Below $15k $15k - <$25k $25k - <$50k $50k - <$75k $75k - <$100k $100k and Up San Diego Transit Riders, 2009 MTS Bus Commuter Rail Freeway Bus Househo ld Income Source: SANDAG, “Results of the 2009 Onboard Transit Passenger Survey for the San Diego Region,” (February, 2011). Premium Express (freeway) buses attract the same market as the commuter rail.
  • 41. 41A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. San Diego Transit Riders, 2009 0% 10% 20% 30% 40% 50% Below $15k $15k - <$25k $25k - <$50k $50k - <$75k $75k - <$100k $100k and Up MTS Bus Light Rail Commuter Rail Freeway Bus Househo ld Income Source: SANDAG, “Results of the 2009 Onboard Transit Passenger Survey for the San Diego Region,” (February, 2011). The San Diego Trolley (light rail) attracts the identical low- income market of the MTS Bus.
  • 42. San Diego’s light rail trolley does not attract appreciable numbers of riders from the middle-income market. Does it at least attract choice riders?
  • 43. San Diego’s light rail trolley does not attract appreciable numbers of riders from the middle-income market. Does it at least attract choice riders?
  • 44. 44A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. “Choice Riders” on the Trolley 100% 80% 60% 40% 20% City Bus (25%) 0% 1995 2003 % of Trolley Riders Who “Had an Auto Available” for Their Trip 2009 Source: SANDAG
  • 45. 45A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. “Choice Riders” on the Trolley 100% 80% 60% 40% 20% City Bus (25%) 0% 1995 2003 % of Trolley Riders Who “Had an Auto Available” for Their Trip 2009 Source: SANDAG
  • 46. 46A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. “Choice Riders” on the Trolley 100% 80% 60% 40% 20% City Bus (25%) 0% 1995 2003 % of Trolley Riders Who “Had an Auto Available” for Their Trip 2009 Source: SANDAG
  • 47. 47A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. “Choice Riders” on the Trolley 100% 80% 60% 40% 20% City Bus (25%) 0% 1995 2003 % of Trolley Riders Who “Had an Auto Available” for Their Trip 2009 Source: SANDAG As popular as the Trolley is, it isn’t attracting a large number of additional people from their cars, even with major expansions. Why not? As popular as the Trolley is, it isn’t attracting a large number of additional people from their cars, even with major expansions. Why not?
  • 48. San Diego’s light rail is generally well- regarded, efficient, and politically popular. So why isn’t it achieving a breakthrough into the choice market?
  • 49. Because what the customer wanted wasn’t a specific mode; it was an alternative that was competitive with their current (driving and parking) options.
  • 50. 50A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Who’s Transit For? Yugo BMW= Is there a difference in what people value? And can we use these differences to drive a whole new business model—and planning model—for transit services? ?
  • 51. In order to know how to attract people to transit, you need to know how to design transit that people will use in appreciable numbers. You need to do market research.
  • 52. In order to know how to attract people to transit, you need to know how to design transit that people will use in appreciable numbers. You need to do market research.
  • 53. 53A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 54. 54A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 55. 55A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 56. 56A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience Concern for Personal Safety It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 57. 57A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience Concern for the Natural Environment/ Pollution Concern for Personal Safety It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 58. 58A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience Concern for the Natural Environment/ Pollution Concern for Personal Safety Sensitivity to Transporta- tion Costs It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 59. 59A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience Concern for the Natural Environment/ Pollution Concern for Personal Safety Sensitivity to Transporta- tion Costs Desire to Reduce or Avoid Stress It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 60. 60A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience Concern for the Natural Environment/ Pollution Concern for Personal Safety Sensitivity to Transporta- tion Costs Desire to Reduce or Avoid Stress Sensitivity to Frequency of Transit It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 61. 61A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience Concern for the Natural Environment/ Pollution Concern for Personal Safety Sensitivity to Transporta- tion Costs Desire to Reduce or Avoid Stress Sensitivity to Frequency of Transit Willingness to Walk Longer Distances It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 62. 62A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience Concern for the Natural Environment/ Pollution Concern for Personal Safety Sensitivity to Transporta- tion Costs Concern with Use of Personal Time Desire to Reduce or Avoid Stress Sensitivity to Frequency of Transit Willingness to Walk Longer Distances It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 63. 63A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. What Factors Drive a Person’s Choice of Mode? Why Do Market Research? Need for Flexibility and Speed Sensitivity to Personal Travel Experience Concern for the Natural Environment/ Pollution Concern for Personal Safety Sensitivity to Transporta- tion Costs Concern with Use of Personal Time Desire to Avoid Crowding Desire to Reduce or Avoid Stress Sensitivity to Frequency of Transit Willingness to Walk Longer Distances It’s relatively easy to design transit services. It’s more difficult to design services that will attract a broader base of riders.
  • 64. 64A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Transportation Market Low High Need for Flexibility and Speed LowHigh Sensitivity to Personal Travel Experience 2000 San Diego Market Research Study We found that the two attributes that most distinguished different market segments were a person’s need for flexibility and speed and their “sensitivity to their personal travel experience,” which was a psycho- social factor.
  • 65. 65A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. The Transportation Market Low High Need for Flexibility and Speed LowHigh Sensitivity to Personal Travel Experience 2000 San Diego Market Research Study We were able to identify six distinct market segments. Each responded differently to the factors we normally consider (in-vehicle time, access time, transfers, wait time, costs, etc.) when projecting modal choice. Conventional Cruisers Easy- Goers Road Runners Cautious Runabouts Cautious Runabouts Intrepid Trekkers Flex Fly Flexible Flyers Study conducted for the San Diego MTDB by Cambridge Systematics, Inc., under the direction of The Mission Group
  • 66. We were then able to locate these six segments across the San Diego region. They are not evenly distributed, but rather are clustered. This makes it possible to target different areas with services tailored to that area’s population mix.
  • 67. We were then able to locate these six segments across the San Diego region. They are not evenly distributed, but rather are clustered. This makes it possible to target different areas with services tailored to that area’s population mix.
  • 68. We were then able to locate these six segments across the San Diego region. They are not evenly distributed, but rather are clustered. This makes it possible to target different areas with services tailored to that area’s population mix.
  • 69. 69A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Market Segment Breakdown Segment Road Runners Hi Hi Cautious Runabouts Hi Med Intrepid Trekkers Hi Med Flexible Flyers Hi Low Conventional Cruisers Low Hi Easy- Goers Low Low Needs Flex/ Speed Sensitivity to Travel Experience Road Runners Hi Hi Cautious Runabouts Hi Med Intrepid Trekkers Hi Med Flexible Flyers Hi Low Conventional Cruisers Low Hi Easy- Goers Low Low
  • 70. We also learned that one size did not fit all. We asked, what does a minute of walking time feel like? How do people weigh that additional minute?
  • 71. We also learned that one size did not fit all. We asked, what does a minute of walking time feel like? How do people weigh that additional minute?
  • 72. 72A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Walking Time Market segments can vary widely in their sensitivity to different design variables. One size does not fit all. What Does 1 Minute of Walking Time Feel Like? 0 1 2 3 4 Road Runners Cautious Runabouts Intrepid Trekkers Flexible Flyers Conventional Cruisers Easy-Goers Market Segment PerceivedMinutes 5 Commute Trip
  • 73. 73A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Walking Time Too many regional travel models use a single set of coefficients for commute and non-commute trips. This can lead to distortions in ridership projections and, more importantly, in service planning. What Does 1 Minute of Walking Time Feel Like? 0 1 2 3 4 Road Runners Cautious Runabouts Intrepid Trekkers Flexible Flyers Conventional Cruisers Easy-Goers Market Segment PerceivedMinutes 5 Commute Trip Non-Commute Trip
  • 74. 74A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Waiting Time Again, not every market segment treats a minute of wait time the same. What Does 1 Minute of Waiting Time Feel Like? (Commuting Trip) 0 1 2 3 4 5 Road Runners Cautious Runabouts Intrepid Trekkers Flexible Flyers Conventional Cruisers Easy-Goers Market Segment PerceivedMinutes
  • 75. 75A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Analyzing Alternatives On the basis of market research, The Mission Group developed a sophisticated yet easy-to-use analysis tool to help its client compare alternatives and understand why they performed the way they did.
  • 76. 76A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Findings of Market Research Relative impact of different transit service features on “mode split” for 9-mile commute.
  • 77. 77A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Findings of Market Research 5% 10% How much does “mode” matter? Bus LRT Bus at LRT Speed Relative impact of different transit service features on “mode split” for 9-mile commute. Full BRT
  • 78. 78A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Findings of Market Research 5% 10% How much does “mode” matter? Bus LRT Bus at LRT Speed Full BRT 5% 10% 10 MPH 15 MPH 25 MPH 40 MPH Relative impact of different transit service features on “mode split” for 9-mile commute. How much does speed matter?
  • 79. 79A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Findings of Market Research 5% 10% How much does “mode” matter? Bus LRT Bus at LRT Speed 5% 10% 10 MPH 15 MPH 25 MPH 40 MPH 5% 10% 15 Min. Wait 10 Min. Wait Relative impact of different transit service features on “mode split” for 9-mile commute. How much does speed matter? Does frequency matter? Full BRT
  • 80. 80A Market-Focused Paradigm for Public Transit, pt. 1: Challenging Our Preconceptions© 1998-2013 by The Mission Group. All rights reserved. Findings of Market Research 5% 10% How much does “mode” matter? Bus LRT Bus at LRT Speed 5% 10% 10 MPH 15 MPH 25 MPH 40 MPH 5% 10% 15 Min. Wait 10 Min. Wait 5% 10% Relative impact of different transit service features on “mode split” for 9-mile commute. How much does speed matter? Single Transfer No Transfer Do transfers hurt?Does frequency matter? Full BRT
  • 81. Does your modeling reflect your actual market? The Mission Group has helped several regions better understand their markets and then improve the fit between their modeling and their planning so that they can better attract and capture new riders.
  • 82. THE MISSION GROUP 3725 Talbot Street, Suite E • San Diego, California 92106 USA +1 (619) 232-1776 • info@missionconsult.com Transit Network Reviews Transit Planning Support Transit Market & Ridership Studies Customer Experience Audits Innovative Alternatives Generation Long-Term Vision Plans & Strategies “Quickway” Network Proposals Presentations and White Papers Workshops and Seminars We’re the transit market experts.

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