For several months now, many of us have been hearing talk of an increase in the price of the Navigo pass, from €75.20 to €90 per month. But is this really a good idea at a time when the Paris transport authority is struggling to keep its metros and buses running on time, and when inflation is at its highest in the country?
A few days ago, former Prime Minister Jean Castex took over the reins of the Paris transport authority. Despite the tense context, the new CEO of RATP has big ambitions. In an interview with Le Parisien, he even promised to « re-establish a quality service in a calm social climate ».
« I’ve heard the message from passengers and we’re going to do better ».
These were the words spoken by former Prime Minister Jean Castex a few days ago when he took over the reins at RATP.
Today, our expert Pascal Niffoi takes a look back at the Orange/Media Services article, and talks to us about a lever that is often overlooked, but is nonetheless essential.
The opinion of our Revenue Management expert
We have good news for Jean Castex, who is taking up his post in a turbulent climate. With a lever that is not one of his priorities…
He admits it himself:
« I’m taking up my post in a social context that is tense due to the issue of purchasing power, concerns about the opening up of bus services to competition, and problems with punctuality ».
It details a series of concerns: recruitment, the company’s attractiveness, well-being at work, absenteeism and pay negotiations. But also RATP’s missions as a public service: punctuality, safety, cleanliness, quality of information.
For the time being, not much has been said about the budgetary difficulties that could lead to a 20% increase in prices in 2023. In other words, twice as much as the cumulative inflation rate for 2022-2023.
It’s hard to justify a sharp rise in prices when the service is deteriorating. However, there is an effective and painless way for users to increase revenue by limiting price increases. This is Revenue Integrity, a lever widely used by airlines to ensure compliance with pricing conditions.
And the first condition is that you have a ticket… But fraud is rife in the metro and buses, with many passengers without tickets. You can see it for yourself: entering through the exit doors, leapfrogging over the gantries, being forced to pass through the same gantry as a passenger by squeezing them close… But there’s also the purchase of reduced-price tickets without a discount card, or the well-known practice of borrowing a family member’s Navigo pass… The revenue potential can be quite colossal.
N&C has carried out a number of Revenue Integrity assignments for airlines, rail companies and cruise operators.
Mr Castex, let’s look at this together. The financial stakes are high, but it’s also a question of social justice. With users in particular at risk of seeing their prices increase to finance those who refuse to pay.
Keywords : Revenue Integrity, RATP, Jean Castex, Revenue Management, Pascal Niffoi
