Smart card and revenue management

People’s use of smart cards is creating a digital tail of data from which transport service providers can formulate a trajectory of their physical movements in transportation networks. The result is that service providers are much better informed. Smart cards allows them to collect new information that they didn’t have access to, or was expensive to gather, in the past, including the locations to and from which people travel, what times they travel, how frequently they travel, which mode of transportation they use, and how much they pay. This improved information availability has given service providers ample opportunities to gather, analyze and act on actual behavior in far more detail and precision than previously possible. Individuals are also better informed and with mobile devices they can receive real-time information regarding service disruptions, timetable changes, and levels of crowdedness. In this research project, we investigate the conditions under which service providers can adopt smart ticketing technologies to improve information capabilities for value creation. In addition, we also develop a model-based decision support approach for designing new pricing and revenue management strategies. This is made possible because the improved level of information permits service providers to be more innovative with new travel service offerings, while supporting improved operations and creating higher revenues. Using smart card data and data from field experiments, we further develop an agent-based simulation to help service providers better manage complex transportation networks that satisfy operational and customer requirements.