The Changing Environment Challenges and Opportunities Stagecoach in the South West The Changing Environment Challenges and Opportunities Michael Watson Managing Director TravelWatch SouthWest 20th January 2016

Overview of Presentation Responding to The Changing Market Devolution & Buses Bill Funding Next Steps

Stagecoach in the South West Stagecoach South West Stagecoach South Stagecoach West Over 1,500 staff & 600 buses 60m passengers Cornwall Devon Somerset Wiltshire Gloucestershire 3-5% Patronage Growth 2.3% growth of bus market (DfT 2014-15)

Responding to Changing Market Reliability & journey Time Costly Increasingly difficult Bus Priority not on the agenda Value Viable alternative to other forms of transport Fuel price Under 19’s market Offers, promotions Off-peak market Quality Specification: Wifi; USB Chargers; High-back seating Customer Care Bus should not become a ‘Demerit Good’ Information & Retailing Free Data Embracing Technology and expectations Fitting into the wider landscape: Google Sales Intelligence

Devolution & Buses Bill Land-use Planning & Bus Services S106 & CIL Negotiation South East & Much of the South West is lucrative for developers Design Reducing ongoing revenue costs for local authorities Inter-authority competition Highways Management & Planning Transport planning for developments Holistic and multi-modal investment plans Road-works management Inter-authority inconsistency Destabilisation in the Market Place Loss of confidence Adverse impact on investment Political influence Paranoia! Opportunity to Evolve Deeper alliances Structure Local Ownership

Funding BSOG Concessionary Fares Tendered Market Total Transport Bus passengers pay fuel duty but air and rail passengers (and farmers) do not. Devolution - Localised distribution Linked to passengers? Concessionary Fares Discounted charging – backwards? Value to economy No one seems happy! More dialogue required Devolution - Localised decision making Business Rates Tendered Market Objective to reduce further Yet, wider value to both rural and urban communities Lower cost solutions need to be explored Creative solutions have been delivered Total Transport School Times SEN Transport LA Travel Planning Teams Smaller Vehicles

Next Steps Inform discussion Align with/Prepare for emerging legislation Strengthen local relationships More dialogue

Thank you – Any Questions?