Why will an SMS ticket be more expensive than a paper ticket? Prague pays a new tariff with commissions
Of the value of a ticket purchased via SMS, DPP has the smallest share against another distribution channel.
The new tariff of the Prague Integrated Transport (PID), which was approved by Prague councilors this week, for the first time envisages a different price for the same ticket according to the way in which passengers buy it.
A ticket for 30 minutes purchased via SMS will cost CZK 31, via paper or purchased via the application CZK 30. There will be a similar difference for a 90-minute ticket: a reduction of CZK 40 in the paper version will cost CZK 42. The city differs differently by the amount of commission from each channel. Councilors for this step garnered criticism from some passengers on social networks that do not support electronic purchasing methods.
“The logical priority is to support the channels from which the city has the most revenues, ie primarily PID Lítačka. Unfortunately, SMS tickets are largely carried by a private operator. For this reason, the idea has been proposed in the past to increase the price for this above-standard service compared to the regular sales channel. “ Ropida spokesman Filip Drápal said. According to him, there is already an electronic alternative in the form of the PID Lítačka mobile application.
From the ticket price commission from 1.9 to 11.77%
Commissions for the sale of individual tickets vary differently depending on the distribution channel. Even after the race in 2019, SMS tickets remain a travel document for DPP, from which sales will remain. The operator of the SMS ticket system can get 11.77% of ticket sales, previously it was over 16%.
According to the director of the DPP communication department, Daniel Šabík, the most advantageous for DPP in terms of net revenue is sales through its own ticket machines, information center or DPP points of sale. “In this case, the entire amount for each ticket sold goes to DPP, we do not pay any other commission to any distributor. The second most advantageous distribution channel for DPP is contactless terminals in trams and metro stations, as 98.1% of the sale of each ticket benefits DPP,“Sabik added.”
DPP has 96% of the sale of classic paper tickets through newsagents or other channels. Via the mobile application PID Lítačka 95% of the ticket price. “From the shareholders’ point of view, the sale of tickets via the PID Lítačka application is as advantageous as through the DPP ticket machines, because the commissions from the sale via PID Lítačka go to sister, city companies Operátor ICT,“Sabik pointed out.
In addition, the advent of smartphones and vending machines with contactless payment makes SMS tickets an ever smaller distribution channel, the use of which is declining over time. DPP did not disclose the exact share of ticket sales according to individual sales methods.
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