Ticket Reselling: A Solution to the Transit Ridership Crash
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Public transit agencies are facing an imminent fiscal cliff due to a decline in ridership post-pandemic. While one hopes that state and federal government will step in at some point to help alleviate these budget shortfalls, many transit agencies will be forced to make difficult decisions in the meantime.
To bridge the funding gap agencies must explore unconventional solutions. One such option, which remains largely overlooked, is ticket resale partnerships.
Several new services have emerged over the past decade that resell ground transportation tickets, similar to the model used for selling airline tickets. Companies like Uber, FlixBus, Wanderu, Busbud, and Megabus all offer partnership programs for transit ticket resale. Additionally, established ticket resellers for airlines are eager to enter the ground transportation market. For instance, SAP Concur acquired HipMunk in 2016 in-part to be able to resell Amtrak tickets to corporate travelers.
It is evident that there is a growing demand to make these tickets available to the public through online retailers. So, what can transit agencies do to seize this opportunity and help bridge their funding gaps?
Develop a clear and concise policy for working with third party ticket resellers.
Establish a designated point of contact for resellers seeking authorization to sell your agency's tickets.
Implement a fare payment platform capable of handling ticket resale, such as TurnIt or Masabi.
Allow ticket resellers to offer discounted tickets. Offering discounted fares when ridership is expected to be low can encourage travelers to choose transit.
While potential passengers eagerly seek alternatives to air travel and driving due to high costs, many remain unaware of the numerous available transit options because they are not prominently featured on popular ticket purchasing platforms.
By not capitalizing on these ticket resale opportunities, transit agencies risk losing out on millions of dollars that can help keep service running. It is crucial for agencies to act swiftly and adapt to this new landscape to revive transit ridership and secure their long term financial sustainability.
RailNinja in Europe.