UK train ticket reform is long overdue, but we need smart data to power it
Buying a train tickets shouldn’t feel like getting out of a labyrinth. Utilising data in transport, like Manchester does, could revolutionise our railways, writes Open Data Institute (ODI) chair Nigel Shadbolt
The renationalisation of the rail network is happening at pace, with the Railways Bill expected to formally establish Great British Railways this spring. A key part of the reforms will be the simplification of the current complex and confusing fare structure. With a staggering 55m different types of tickets on offer, it’s tricky to know which to choose or even what conditions and restrictions might apply to the ticket you are buying. Some people are inevitably caught out, incurring penalty fares and even experiencing prosecution.
Passenger Sam Williamson attracted headlines when he was threatened with prosecution for fare evasion after mistakenly assuming his £3.65 ‘anytime’ ticket could, indeed, be used at any time. While fare evasion is a serious business, costing the industry £240m every year, his case was one of an estimated 74,000 where travellers hadn’t intentionally avoided payment but had been caught out by the labyrinthine fares system. The rail operator has now said it’s withdrawing all live prosecutions for similar offences valued at less than £12, but it is unlikely to reassure the 35 per cent of people who say they have been put off rail travel by the complexity of fares.
Transport lessons from Manchester
Successive governments have long recognised the need for wide-ranging reforms to address passenger concerns about issues such as fares, reliability, peak travel crowding and accessibility, which are deterring many from travelling by rail. Yet the cost and complexity of the task have previously kicked the project into the long grass. However, ‘smart data’ – the term for the secure sharing of customer data with authorised third parties (ATPs) – could offer a solution. In the finance sector, it has transformed the customer experience. For instance, we all enjoy being able to withdraw our money from the ATMs of competitor banks, and many of us use apps like Cleo and Plum to monitor our spending and build savings.
Smart data could play a major role in the transport sector by helping cut through the maze of regulations and operator data to rationalise the system in the interests of better services for customers and better running services for operators. The Bee Network demonstrates its potential to improve transport for passengers and operators. The integrated travel system in Manchester links ticket, route and service data with customer data. It has delivered a more efficient, reliable and user-friendly public transport system with benefits including reduced operating costs by a third per kilometre compared to previous tendered services despite a five per cent increase in bus journeys. A simplified fare structure and AI ticket recommendations will also help passengers like Sam Williamson avoid the risk of financial penalties by recommending the correct ticket for their journey.
The opportunities go beyond the transport sector. The government is keen to develop a ‘world-leading smart data economy’ targeting key sectors such as energy, banking, finance, retail, transport, home buying and telecommunications – which it hopes will generate £215bn over five years.
Organisation Ctrl-Shift believes “the UK, with its pioneering efforts in data portability through initiatives like open banking, is uniquely positioned to develop a world-class smart data economy”. But if we want to realise this potential, there’s no time to waste. Countries such as Australia, India and Singapore are outpacing the UK. We cannot afford to fall further behind – particularly when we are ideally placed to become world leaders.
How to make transport ‘smart’
Progress is being made with the Data (Use and Access) Bill – formerly referred to as the Digital Identity and Smart Data Bill – expected to receive royal assent later this year. The Bill represents a shift in approach to data policy, aiming to harness the power of data for economic growth. It will create the conditions for new smart data schemes in sectors including transport, energy and housing. However, time has been lost between the dissolution of Parliament – ahead of the general election – and the laying of the Bill. Now we must step up the pace to avoid falling behind countries that are already using collaborative data ecosystems to drive economic growth. Estonia, for example, estimates that smart data has saved 800 years of working time for the state and its citizens. On 15 January, the Smart Data Challenge opened, helping to kickstart the adoption of smart data across the economy. The Challenge encourages individuals, innovators, entrepreneurs, academia and civil society to identify innovative ways in which smart data could make a difference for consumers, small businesses and broader society.
The government can build on existing frameworks and expertise to enable rapid implementation of smart data schemes in transport. The Smart Data Council (on which the ODI sits) can guide the development of a new smart data transport system. We can develop a more efficient, customer-focused transport network by drawing on lessons from successful initiatives like open banking, where secure data sharing between banks and authorised third parties has transformed how consumers manage their finances.
Putting people in control of their data
However, we must remember that the transport landscape is more complicated than finance. It involves multiple modes of transport, logistics and many aspects of civil infrastructure, from roads to railways, rivers and canals, airways and shipping routes. Each domain has hundreds, or even thousands, of stakeholders from both private and public sectors. Each organisation will likely hold large amounts of data in different forms and of variable quality across many IT infrastructures. Maintaining their engagement will be critical to the success of any smart data schemes in the sector. Experienced and dedicated support, along with resources like the ODI’s Smart Data Innovation Guidebook, can help provide a roadmap for policymakers as they build cross-sector collaboration, explore interoperability and reduce barriers to competition.
It will also be critical to improve public understanding of the benefits of smart data. If people understand how their data can improve services and are reassured that it will be safe, they will be more likely to participate in smart data initiatives. New Privacy Enhancing Technologies (PETs) have a role to play here, helping people to retain control of their data and who has access to it. One such technology is , which allows individuals to store their data in personal ‘pods’, giving them the power to decide how and when their information is shared.
Smart data has the potential to revolutionise our transport network by enabling operators to reduce costs, plan more effectively and improve customer experiences. It can do the same for many other areas of our lives, from housing to energy and utilities, telecommunications and retail. In every area, the potential of smart data extends beyond the immediate domain in which the schemes operate. For example, in transport, this transformation could help tackle the decline in passenger numbers on the rail and bus networks, combat road congestion, reduce emissions and benefit the environment. By driving forward the adoption of smart data in transport and more widely throughout the economy, we have a golden opportunity to stimulate economic growth and improve lives long into the future. We cannot afford to let it slip through our fingers.
Sir Nigel Shadbolt is the executive chair and co-founder of the Open Data Institute (ODI)