THE GROWING POPULARITY OF PUBLIC TRANSPORTATION

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Presentation transcript:

THE GROWING POPULARITY OF PUBLIC TRANSPORTATION According to the American Public Transportation Association (APTA), the $63-billion industry recorded 10.7 billion trips during 2013, the highest number since 1956, and is on track to set a new record for 2014. Americans are also demonstrating their support for public transportation at the ballot box, as 71% of public transit initiatives were passed during the November 2014 election, and at a passage rate of 60%. The US Bureau of Labor Statistics reported that the number of private mass transit establishments increased from 19,473 for Q2 2013 to 19,839 for Q2 2014, and local government establishments increased from 1,627 to 1,657, respectively.

“ALL ABOARD!” According to the APTA’s December 2014 Transit Savings Report, Americans, on average, would save $9,589 annually if they rode public transportation instead of owning a car, buying gas and paying for monthly parking in a downtown business district. Of the 5 US cities with the highest totals of heavy rail trips during 2014, 4 are east of the Mississippi: New York; Washington, DC; Chicago; and Boston. San Francisco was 5th. Four West Coast cities, however, were among the top 5 in light rail trips: Los Angeles, San Francisco, San Diego and Portland, OR. Washington, DC was first.

THE TRANSIT RIDER REVEALED There are 5 factors that affect whether someone is at least an occasional transit user. Four have a positive effect – high population density of home neighborhood, being employed or a student, being an ethnic minority and high-quality local transit – and one has a negative effect – high income. The highest percent of people who commute by car at least 3 times per week was 87%, and were driving 10 to 20 miles. The highest percent for mass transit riders was 24% for those traveling .5 to 1 mile. African Americans, 39%; Hispanic Americans, 37%; Native Americans, 32%; and Asian Americans, 32%, were more than three times as likely to ride mass transit at least once per week as European Americans, at 10%.

MILLENNIALS ARE MASSING Millennials seem to be the generation that is driving much of the increase in the use of mass transit, although many were raised in suburbia and its car culture. It’s unclear whether Millennials use of mass transit is a function of the short-term need to be more economical or a long-term trend. More Millennials who are parents of small children, however, travel on mass transit at least once per week than parents, 30 to 60 years of age. Millennials appear to be leading the trend to a more urbanized society, which is expected to be 70% of the global population by 2050. More of them consider the ideal neighborhoods to be urban, downtown, with a mix of offices, apartments and shops or urban, residential than adults older than 30.

CAR CULTURE RUPTURE Another trend that may be contributing to the increase of mass transit use is that vehicular travel volume has been decreasing since 2007, and Millennials is the largest group driving less and more of them are delaying the acquisition of a driver’s license. Millennials purchased 30% fewer cars from 2007 to 2011, which may be a function of the economy; however, more telling is that only 54% of teens had a driver’s license prior to their 18th birthdays. To date, the automobile industry has had difficulty responding to this trend, although some industry analysts think that as cars are equipped with more sophisticated technology, Millennials may increase their purchase of automobiles.

RIDING INTO THE FUTURE A September 2014 ATPA survey found that 68% of Americans think the US government should increase its investment in public transportation. New city transit centers are opening or being built in Anaheim and San Francisco, CA, Newport News, VA, Denver, CO and Miami/South Florida. They will provide easier interconnectivity of bus, rail and even bicycle travel, and include shopping, restaurants and other retail outlets. More people are living in one city and working in another nearby, increasing the need for regional mass transit. An intercity commuter railroad connects Salt Lake City and Provo, UT and similar projects are being developed between Chicago and St. Louis, Dallas and Houston and Orlando and Miami.

ADVERTISING STRATEGIES Public and private mass transit services can use TV advertising effectively to reach the ethnic communities that are the dominant mass transit riders, with actors in their commercials that reflect these communities and with Spanish voice-overs in the appropriate markets. Mass transit ads can also feature stories, fictional or rider testimonials that explain why they are transit riders and how it is more convenient and benefits their lives. Now is the time for transit companies to use TV, in conjunction with social media, to promote the benefits and “coolness” of riding public transportation among teens, so they become regular riders at a young age.

ADVERTISING STRATEGIES Mass transit services should continue to market to business passengers by advertising free internet services. Passengers will benefit from the convenience of technology and, in most cases, will be able to work while traveling. These services will enhance the ridership from passengers of this demographic. Public transportation services that invest in alternative fuels should advertise their clean air initiatives. As the awareness for clean air continues to heighten, potential passengers will be more apt to travel on energy-efficient mass transit services in effort to control air pollution. Planned communities that wish to attract buyers should consider accessibility to public transportation. Neighborhoods that are connected to mass transit services are known to have higher home values. Also, public transit services are a good selling point for communities hoping to increase physical activity and community togetherness. Most buses, light rails and subways have space for businesses to advertise. Placing an advertisement on a mass transit vehicle will ensure that it will be viewed by many individuals on a daily basis. Public transportation services could also advertise their prices, maps, run times as well as other transit services the city has to offer.

SOCIAL MEDIA STRATEGIES Mass transit companies can use social media to showcase the benefits of public transportation with written content, photos and videos, and the safety, cleanliness and convenience, in particular, to attract more European Americans of all ages. Mass transit companies should be using social media to engage with Millennials and teens and asking them to share their public transportation stories, including photos and videos of them traveling with friends and the appeal of these social experiences. Mass transit companies can use the publishing feature of LinkedIn to upload content that promotes public transportation among professionals and the value of employers offering mass transit discounts or pre-paid cards as an employee benefit.