On smaller operators and franchising
http://hctgroup.org/about_us/dai_po...ing, or why bus operators need the Buses Bill
The whole idea of bus franchising is that operators compete for routes; so there can be a multiplcity of operators within one city. What there won't be, is a multiplicity of fares and tickets. Just as with tendering for subsidised routes currently, where it is noticeable that smaller operators have a much better chance of getting the business than they would of competing for commercial routes. Which is the point the article is making; cutting back terndered services is hitting the smaller operators; franchising is potentially their lifeline.
Buses don't compete with cars at present, trams and train do; bus operators concentrate almost entirely on carless users, hence high price single fares, predatory weekly tickets, no through ticketing across operators, pay on board, frequent stops, infrequent (and unreliable) services. To compete with cars you need simple flat-rate single fares, no penalty for cross-operator travel, high frequency service, high reliability, pay in advance, limited stop, comfortable seating. One of the key messages from the Cambridgeshire and Leigh busways is that to grow demand from former car userss, buses need to be less directed towards the expectations of carless users. Crucially, current deregulated buses build in extra time penalties to users; as on competitive routes, passengers have to wait for the service for which their tickets are valid. In a franchise system you can always get on the firs bus that comes, without paying extra to do so; which reduces overall average transit time; which in turn is the big opportunity for buses to outperform car travel.
In respect of the busway, the current services are brilliant as a stand-alone offer; but their integration into the general transport network is sorely deficient. So, First run the busway from Leigh to Manchester, but Diamond operate the circular route around Atherton and Leigh. The Diamond buses don't stop at the First busway interchanges; and the First tickets cannot be used on Diamond buses. Equally, busway passengers connecting to trams in the city centre have to pay extra; and vice versa, tram passengers have to pay extra to use the busway from the city centre into the University. This is the basic economics of deregulated buses; each operator only benefits from the passengers that travel on their own buses, so no operator has an incentive to generate additonal demand for public transport as a whole. Franchising works the other way; growth in patronage on one public transport service increases the potential user base for all other services; so long as operators are able to capture usage (through GetMeThere cards ideally) they will be compensated for all passenger movements across the system. But they won't face predatory pricing; as all prices will be the same for the same trip irrespective of the modes and operators used.