The goal set for the studies was to identify a model that would best meet HSL’s strategic goals as well as the financial goals and the goals related to sustainable and emission-free travelling set by HSL’s member municipalities. The aim of the investigation into the different pricing models was to identify a model that in 2025 would yield a record number of public transport journeys, i.e. 400 million journeys, and 400 million euros in ticket revenue. Additionally, the aim was to find a model that would best promote the use of public transport by cutting down on the use of private cars, which would help the region to meet the emission goals it has set.
Studies on zone models 2021–2023
The HELMET transport demand model system in the Helsinki region was used when examining the impact that the models have on traffic. Additionally, we have asked our customers and our interest groups for their opinions on the models. Tens of thousands of customers have taken part in the studies and interviews that we have conducted in different stages. According to studies conducted between 2021 and 2023, the flat fare system is the best alternative to the current zone model.
The studies have included a total of seven different zone models that could be used to price tickets:
- The current zone model ABCD with a modified ratio of price to distance traveled: the price of longer journeys would decrease in comparison to shorter journeys. A separate D zone ticket would no longer be offered. Instead, passengers would always have to purchase a ticket for at least two zones, i.e. a CD ticket in zone D.
- An ABC model comprising three zones, in which the current C and D zones would be merged into one.
- An ABC model comprising three zones, in which the current A and B zones would be merged into one and in which passengers could purchase a single ticket for zone A, B or C.
- The flat fare system, i.e. a model that does not have zones and passengers could use one ticket to travel within the entire HSL area.
- Kilometer-based pricing, in which the price of the ticket would be determined on the basis of the starting point and destination.
- A so-called my zone model, in which the passenger would determine the travel area and then purchase a ticket for said area.
- A two-zone model with zones AB, in which Helsinki, Espoo, Vantaa and Kauniainen would be situated in zone A and all the other HSL municipalities in zone B.
The my zone model and the model based on kilometers (models 5 and 6) were excluded from the studies at an early stage. The reason for this was that the my zone model was deemed complex by customers and a model in which pricing would be based on the number of kilometers travelled is not technically possible to implement in the HSL area.
The models that were examined further by the HELMET transport demand model system underwent two investigative stages. The central conclusion reached in the impact analyses was that the best way to promote the use of public transport services in the HSL area is to make expensive and long public transport journeys more affordable. Doing so will also ensure that the goals set for ticket revenue can be reached.
Benefits of the flat fare system
The flat fare system was the only model in the first phase (models 1–4) that met the goals set for it effectively and that was also popular among customers. The results from the second phase were highly similar (models 1, 4 and 7).
Customers are drawn to the flat fare system due to its clear and simple nature. In addition, customers regard the model as equal, fair and accessible, as it would enable flexible and unconstrained travelling. In the interviews, many respondents unpromptedly stated that they would consider switching to a season ticket if the flat fare system were implemented. This would increase the use of public transport for leisure journeys.
The flat fare system is the easiest model for those who only occasionally use public transport, as they would not have to take time to learn and master the use of different zones. Moreover, companies are also in favor of using the flat fare system in the commuter benefits they offer to their personnel due to the fact it is the simplest and most equal model as well as the easiest to manage from an administrative viewpoint. Of all the models, the flat fare system would most effectively secure workforce mobility and provide the best opportunities for companies to set up business in the Helsinki Metropolitan Area.
We will implement the contactless payment method – the option to pay for public transport journeys directly with a debit or credit card – as part of the renewed ticketing system. Contactless payment is already used in certain cities in Finland, e.g. in Turku and Tampere. The flat fare system enables a simple passenger experience, as customers do not need to choose between different products but can simply show their debit or credit card or HSL card to the card reader. The system makes it easy for passengers to board public transport vehicles, which means faster services and reduced operating costs.
The flat fare system would increase the number of public transport journeys to downtown Helsinki from outside of the city and would therefore contribute to the recovery of downtown economy and services more than any other model.
The simple nature of the system would make it easy to develop it further, as building new features on top of the system would be relatively straightforward. For example, dynamic pricing that would guide demand and enhance the organization of public transport services could be adopted as part of the service without the risk of making the system too complicated and difficult for customers.
Pricing of tickets impacts the costs for municipalities
Any changes to the pricing of tickets will have an impact on the costs for HSL’s member municipalities. If the flat fare system were put into use, the price of two-zone journeys would somewhat increase whereas we would be see a clear increase in the prices of four-zone journeys. Flat-fare pricing would decrease the municipal contribution share of Helsinki, which would mean savings of approximately 10 million euros in subvention payments per year. Compared to the current price level, the price of journeys that the residents of Vantaa and Espoo make especially through zone C would decrease, which would entail a slight increase in municipal contributions.
Proportionately, HSL’s member municipalities would bear the largest share of the increase in the contributions paid to public transport. On the other hand, a decrease in the prices of public transport tickets would mean a reduction in tax deductions from commuting expenses for the residents of the member municipalities, which in turn would entail increased tax revenue for the municipalities. In addition, flat-fare pricing would have a significant impact on promoting the shift from using private vehicles to public transport for journeys made from the member municipalities to Helsinki. Moreover, the system would best support the goals of sustainable growth set by the member municipalities as well as the development of land use along public transport connections.
HSL’s Executive Board will make a decision on the zone model that will be selected on 28 March. A decision will be made on next year’s pricing model on said date. However, no decision will be made on ticket prices at that juncture. A decision will be made on 2024 ticket prices in October 2023 as part of next year’s budget. The goal is to implement the new system during 2024, provided that a decision is made to change the current pricing model.