(20 Apr 2020, 3:32 pm)Ambassador wrote The next big issue is post lockdown.
Even with a gradual return the reality is many of us won't see the inside of our offices potentially until next year. The likes of Zoom and Microsoft Teams have opened the eyes of even the most hardened IT critic. Equally some businesses who were already struggling simply won't survive. Then there's a confidence issue of passengers themselves (how many parents - where they can - will now drive little Jimmy and Jane to school instead of risking their little darlings on a bus?)
This of course means the same passengers numbers won't be there and I think Martijn G and the Team at GNE are very aware of that but it's a huge challenge for them and even before COVID-19 it was already a big ask. Sellable assets aren't assets if you're competitors are equally in the same position which rules out an immediate cash flow solution.
It's a balancing act between enticing passengers back and paying your costs and it's going to be like that across most of business, however I think for public transport (buses in particular) it will be a much much bigger challenge
So getting back to pricing, will they need to identify a structure attractive to those who may have used it in the past? I'm thinking those who used buses as part of their commute (but due to the change in personal working habits) - would then be only using it on weekends and therefore buying singles, returns and the ilk.
I'm pretty sure the price per journey difference will soon change any perceptions of VFM.