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Improving Reading Buses profitability with Insights
Robert Williams
Chief Executive Officer at Reading Buses
EPM Insights has shifted the Reading Buses business away from the manual collation of data to the automated production of key metrics, freeing up management time to focus on the actionable intelligence which the tool provides…. supporting us to react to both the changing nature of reality during the Covid pandemic and to help shape our future network. “
Reading Buses has been working with an internationally renowned supplier of transport management systems, EPM Bus Solutions, to develop a new business data ‘Insight’ solution to support improving the bus operator’s business.
The online platform provides bus operators with customised Management Information and enabled Reading Buses to change from the manual collation of data to an automated production of key business performance metrics.
With demand for bus services more complex than ever due to the acceleration of changes in work, shopping and social patterns resulting from the Covid-19 pandemic. Operators need to be agile, to react to the changes in passenger demand and requires a deep understanding of the data relating to their operations in order to achieve their business goals.
Operators have invested in a range of systems, however the need to combine data from across the business into easily accessible information still remains.
Said Robert Williams, Chief Executive Officer at Reading Buses: “ We have traditionally invested lots of time collating static dashboards and KPI’s manually, EPM Insights has provided us with one platform combining data from across the organisation including, operational, commercial and engineering, providing the management teams with actionable management information.”
“The solution quickly surfaces business performance issues in real-time and identifies the key areas to focus management attention, and thereby providing them more time to put in place the required interventions and strategies, which has supported improving Reading Buses profitability and efficiency.”
Nick Brookes, Software Director at EPM Bus Solutions , added: “We are delighted with the adoption of EPM insights at Reading Buses. The dynamic drill down reporting within the platform has provided them with the tools to deep dive into their data and explore the reasons behind performance.
This enabled the operator to react to both the changing nature of reality during the Covid pandemic and help shape Reading Buses future network.”
Covid-19 has changed how we live, work and travel, and bus operators have to adapt to ensure future profitability. The eBook provides a guide on how you can drive revenue during these uncertain times… 2021 and beyond.
UK bus services have been hugely impacted by the Covid-19 virus, with patronage dropping almost 90% in the early stages of the pandemic and social distancing measures becoming mandatory on all public transport.
As the government starts to lift restrictions, it is now vital to understand the changing demands of the industry so that you can discover ways to encourage passengers back on board.
With many transport operators facing an uncertain outlook, at EPM, we’re changing to ensure we are better placed than ever to help you face the future and embrace emerging opportunities.
New solutions coming soon!
Over the past year we have been listening carefully to our customers and reviewing our business. As a result we’ve made a number of changes to what we do and how we work. We have been busy developing a new suite of Bus Transport Management solutions and services, focussed specifically on the challenges that the bus sector will face as society emerges from lockdown. Our new Insights solution will be launching very soon, keep an eye out for more information over the next few weeks.
Renamed to EPM Bus Solutions
We’ve also renamed from ‘EP Morris’ to EPM Bus Solutions to better reflect our core service offering, accompanied by a revised logo and brand design. You can find all of this on our new website, along with details of how we help bus operators and transport authorities to improve their operations.
Experts in transport management, improving profitability
What has not changed is the quality of our software and services, and being your trusted partner with deep expertise in the bus sector. Focused on improving commercial and operational performance, we have solutions which support you to:
Maximise revenue
Grow patronage
Improve efficiency
In some ways we are sad to see the old logo and website go … it worked for a long time but we are even more excited to bring in the new… and continue providing you with best-in-class Bus Transport Management services.
If you have any questions, then get in touch. We look forward to sharing with you our new solutions over the coming year.
From the outset of the coronavirus pandemic the Department for Transport made a commitment to operators that BSOG would continue to be paid at pre-Covid levels. They have now issued guidance as to how operators should complete their claim forms on a “no better, no worse” basis.
The guidance covers the two main elements of the claim:-
Eligible Kilometres – Operators should continue to report the actual live and dead kilometres run over the claim year. Where services have been affected by the Covid pandemic from 23 March 2020 the mileage should be estimated for the remainder of the year on the basis of the pre-Covid actual kilometres. This includes those services that have either been reduced or cancelled. The additional kilometres, that would have otherwise operated, should be presented on a supplementary page.
For users of the EPM Traffic system the BSOG Estimate function can be used to forecast the mileage that would have operated using pre-Covid operations.
Fuel Consumption Factor – Following the initial lockdown in April there was a noticeable improvement in operators fuel efficiency with our clients reporting average increases in fleet mpg’s of around 25%. This was largely attributable to fewer cars being on the roads and is certainly a great argument for reducing congestion levels in our towns & cities. However, due to the underlying calculation of BSOG entitlement, such an improvement in fuel efficiency is detrimental to the value, which would make operators “worse off” during the lockdown period.
We informed the Department of this issue, which they have now addressed in the guidance. Section 3 of the PSV311 will require actual kilometres and fuel issues to be calculated over the claim period. However, due to the irregular kilometres per litre (kpl) that will be reported, the DfT are allowing operators to base the fuel consumption element of the claim over a pre-Covid period. This approach will ensure a realistic kpl factor is used in the evaluation.
Due to the additional requirements and the impact of the pandemic the Department are extending the statutory deadline of 3 months from the end of the claim period to 4 months. Should operators fail to submit by the extended deadline the claim will be rejected.
EPM are the leading experts in the certification of BSOG claims, ensuring that all claims they certify are accurate, compliant and maximised. If you would like to discuss how we can help you with your claim, then get in touch.
The DfT have published their core concessionary fares reimbursement guidance and calculator for the 2021/22 scheme year. As expected, there are no material changes to the existing guidance and calculator, with all existing principles remaining unchanged. The core guidance and calculator is expected to be published on gov.uk within the next few days.
Due to the ongoing funding mechanisms in place, the DfT have also published supplementary guidance this year. Within this, they have requested that LTAs continue to pay concessionary fares reimbursement at pre-Covid levels in order to protect bus services. They have indicated that a transition plan is to be contained within the forthcoming National Bus Strategy.
Without prescribing a specific approach to calculating pre-Covid reimbursement levels, the DfT have instead set out six principles that LTA’s might want to consider e.g. seasonality of services and general trends in concessionary journeys over recent years. It is likely that a number of LTAs will revisit their calculations to ensure that all principles have been considered, which in turn could see a reduction in the reimbursement for operators.
If you have any questions or concerns around your reimbursement, including your ‘pre-Covid’ payment levels, EPM’s experienced consultancy team are here to help. Contact us to discuss your requirements.
As part of the National Bus Strategy the Government have pledged to have 4,000 zero emission buses in operation by the end of 2025. With numbers currently just under the 700 mark, there is a long way to go and a significant amount of investment required in both the vehicles and infrastructure.
The LowCVP have recently published their paper setting out the funding options that they believe the Government should consider. Each option has been scored by their members as to the effectiveness in accelerating the adoption of zero emission buses.
The paper looks at existing funding streams – ULEB bids, incentivising through additional BSOG as well as alternative options going forward, such as vouchers, grants, etc. They also consider the impact of COVID-19 on the industry and how that could change future funding in the short term to boost operator appetite for greener buses and protect manufacturing jobs in the UK.
It is clear from the paper that members view the LCEB BSOG incentive as being an effective tool in delivering the Government’s target. However, the current scheme in England was introduced over 10 years ago and certainly needs updating to provide more generous payments to those operators with the cleanest vehicles, rather than the current flat rate. The paper suggests a graded pence per kilometre low carbon scheme such as that introduced in Scotland in April 2019, a view we at EPM agree with.
Whatever funding mechanism is put in place it is clear that the DfT will need to act fast and dig deep if they are to hit their target!
EPM are the leading experts in the certification of BSOG claims, ensuring that all claims they certify are accurate, compliant and maximised. If you would like to discuss how we can help you with your claim, then get in touch.
In a wide-ranging report published on 2nd October 2020, the National Audit Office (NAO) provided a series of recommendations that signal a new direction of travel for bus operations in the UK.
The report echoes the widely held view that good quality bus services are vital for local economies, can help ease congestion, and support better connected communities. It also sees an important role for buses in addressing air quality issues and reducing greenhouse gas emissions.
However, despite the best intentions of everyone involved in the delivery of bus services, the statistics from the last 10 years do not make good reading. None of this will be a surprise to the bus community, but the scale of some of the trends are both eye catching and alarming.
10% decline in bus patronage
18% fare increase in real terms
38% drop in financial support from local authorities
54% drop in miles travelled on local authority supported services
The drop in financial support from local authorities is unsurprising, considering their budget reductions for non ring fenced services. But it does mean the decline in bus travel has disproportionately impacted those routes which are important for rural or disadvantaged users.
To address the situation, the NAO makes recommendations that will chime with everyone who wants to see a brighter future for buses.
A new bus strategy that gives a clear, consistent vision of the future of bus travel
Support for local authorities to make long-term plans for their own local needs
Enough funding, for both local authorities and operators, to deliver the bus strategy
Reform of funding mechanisms to align with the objectives of the bus strategy
Good quality data to monitor progress and measure success
Collaboration and transparency to enhance accountability for improving buses
One thing is clear – change is coming, and it should be good news for buses!
Covid-19 has been painful for all sectors of society and has had a dramatic impact on the bus sector. But it can also be a catalyst for the change that clearly was already needed, helping to sweep away fears and obstacles that have prevented progress in the past.
The government has demonstrated its commitment to the bus industry with financial support during the dark times and is promising significant additional investment in the industry over the coming years. A first ‘National Bus Strategy’ will be published by the end of the year, along with £5 billion of funding for ‘buses, walking and cycling outside London’ over the next five years.
Whilst the long term trend of declining patronage is concerning, there are beacons of hope in areas that have already reversed this trend. These present clear examples to learn from and follow.
All these pieces – a new vision, new funding and new ideas – provide a platform to build a better bus industry for passengers, operators, local authorities and government.
What does the future look like?
Local government and bus operators had to rapidly come together during the early stages of the pandemic, to identify and address the urgent needs of all concerned. Despite facing unprecedented challenges and an uncertain future, the sector pulled together to find a way through.
It’s no coincidence that it’s this type of close collaboration that has enabled some areas to reverse the trend of declining bus patronage in recent years. By working together, local authorities and bus operators benefit from the virtuous circle of reduced congestion, faster bus journeys, more attractive bus services and better economics for all concerned.
These kinds of new and effective working relationships, with greater collaboration between local transport authorities and bus operators, look sure to be a fundamental part of the future for bus operations.
And with increased public funding of bus services, along with government investment in the bus network, there will inevitably be a requirement for increased transparency and accountability to ensure the public purse achieves the best possible value.
Are you ready for the new direction?
Now is the time to seize the opportunity for change, whilst traffic congestion is low and demand is rebuilding in new ways. But to make the most of this opportunity you need access to data on all aspects of bus operations, and you need tools to provide the critical insights from that data to ensure you make the right decisions.
Looking further forward, new collaborative ways of working will be essential to building a better future for bus services. Achieving this will depend on having the right data and tools to provide insights and transparency.
EPM are experts in the field of management systems, data and analytics in the bus sector. Our consultants will ensure your systems and data are ready for the future, drop us a line at epm@epm-bus.com if you’d like to arrange a meeting.
As operators look to increase service levels ahead of schools returning in September the DfT have announced that the Covid-19 Bus Service Support Grant (CBSSG) Restart scheme is to be extended.
In their press release the Department have guaranteed payments of up to £218.4m over the next eight weeks, with rolling funding of up to £27.3m per week afterwards. This additional funding will continue until it is no longer needed.
In a separate letter to operators ahead of the press release the Department set out conditions to the scheme extension, including:
Whilst receiving CBSSG, operators should not make a profit
Service levels should increase to 100% of pre-Covid levels for September
Operators need to consult with Local Authorities on service level requirements
Bus timetable changes must be communicated to passengers
Revised terms and conditions will be issued shortly, however the Department noted that they will for the most part stay the same.
Finally the DfT also confirmed their commitment to pay BSOG at pre-Covid levels and reiterated that LTA’s continue to make payments to operators for tendered services, concessionary travel and home to school transport at pre-pandemic amounts.
The letter to operators can be found on the link below.
Following the announcement earlier this week that the DfT would provide an additional £254m to assist operators in increasing service levels over the coming months, details of the scheme have now been published.
In summary:
CBSSG Restart replaces the existing CBSSG scheme and will be backdated to 12 May.
It is available to operators of commercial eligible local services.
Operators who didn’t claim under the original CBSSG scheme can receive funding under CBSSG Restart. New claimants must register by 7 June.
Payments will be made every four weeks and the scheme will initially be in place for 12 weeks, although this could be extended.
Operators will have to supply details of live commercial kilometres operated and passenger numbers every four weeks. This information is readily available for those operators using the EPM Depot Performance System (DPS).
An open book reconciliation process will take place every 12 weeks and at the end of the scheme to ensure that operators have not made an operating profit from the scheme.
A template will be provided in due course for operators to claim separately for restart costs, PPE, safe operation costs, etc.
As the first CBBSG scheme draws to a close on 8 June the DfT have also provided details of the open book reconciliation exercise that will take place in June to close off this scheme. This includes a list of specific revenue and costs items that should be included / excluded.
Full details of the guidance issued by the DfT covering the above points can be found here:
If you have any questions on the CBSSG Restart scheme, then please get in touch via email or on 01527 556940. Additionally, the EPM Support Team are available to assist users of DPS in providing the data returns as required by the DfT.
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