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9 Secrets to Reducing Fleet Expenses
As a fleet owner, your day-to-day costs can quickly add up. What you don’t know is there are further hidden, expensive...
Read morePassenger transportation is crucial to the European economy, employing over 10 million people and contributing about 5% to the EU’s GDP (1). As demand is expected to increase by 79% by 2050 (2), the industry must adapt to meet growing customer needs while transitioning to a sustainable, net-zero model. Investing in sustainability can transform the sector by providing more affordable, safer, and accessible services to all citizens according to the International Transport Forum (3).
Challenges such as fuel efficiency, competitive pressures, vehicle maintenance, labour costs, CO2 emissions, productivity, and customer service are always present for passenger transportation companies, but implementing fleet management technology can make a difference in these areas as well as simplify the shift to a sustainable transportation model.
Let’s dive into some important insights that show how telematics can help achieve sustainable passenger transportation:
Insight #1: Customer-centric culture for better results
Transportation companies enhance customer loyalty and retention by delivering top-notch experiences, crucial for standing out from the competition and achieving business success. According to research “various factors such as customer satisfaction, quality of service, customer experience, and customer relationship management” all play a part when it comes to customer preference (4).
Fleet management technology transforms passenger transportation by offering real-time service updates and engagement opportunities to customers, fostering transparency and trust. It not only supports a customer-centric culture but also improves service quality, as evidenced by 58% of GPS fleet management users in the recent Fleet Technology Trends Report Europe 2024.
Insight #2: Route optimisation for an improved customer experience
Vehicle fleets in the passenger transport sector must be prepared to react to possible road congestion events that may result in long travel times, traffic jams, accidents, increased engine idling, fuel consumption, etc. This not only ensures that the company’s fleet operates more effectively, but also has a positive impact on customer satisfaction.
In this sense, route optimisation software is a very helpful solution. Tracking operations via live maps and near real-time information on road conditions and closures allows the team to be quickly informed of any route changes. Safer and more efficient routes can then be chosen based on the company’s requirements.
In fact, 57% of GPS fleet management users in the passenger transport sector were able to improve their routes, which in turn improved the customer experience and helped avoid unnecessary travel and also reduced fuel consumption.
Insight #3: Customers want a safe and smooth ride
One of the fundamental pillars of a company’s reputation lies in its safety standards. That’s why it’s essential for passenger transportation companies to provide a safe, convenient, and high-quality service. To achieve this, it’s crucial to have control over both driver behaviour and vehicle maintenance. In this regard, a GPS fleet management solution proves invaluable as it enables:
- Monitoring of the team’s driving habits to implement measures that promote safe and efficient driving practices. This helps to avoid various forms of aggressive driving behaviour, such as harsh braking, tailgating, or speeding, which account for 30% of road fatalities (5).
- Effective vehicle maintenance by combining both preventive and predictive approaches. By monitoring engine hours and mileage, and promptly addressing any arising needs, companies can reduce significant and costly repairs, as well as minimise vehicle downtime in the workshop.
This approach ensures a safe, mindful, and passenger-focused travel environment.
Another pillar of safety in the case of long-distance passenger transport is compliance with driving times and rest periods, as these are crucial to ensure the safety of both driver and passengers. Driver fatigue “is a major factor in a large proportion of road crashes (range 10-20%) and fatigue is associated with increased crash risk” (6). It should be a priority for the company to check that their bus drivers are in a fit state to drive before they do so.
By using fleet management technologies alongside a digital tachograph, this enables operations to be monitored remotely, almost in real time, and to check on driving hours and rest periods. The technology also shows whether the driver is adhering to legal requirements before operating a vehicle.
We offer fleet management solutions designed to boost safety and service quality for passenger transportation companies. By enhancing these areas, your business can distinguish itself from competitors who do not use these advanced technologies, potentially leading to improved safety and better customer service.
The future of passenger transportation is now
Passenger transportation companies in Europe are poised for significant growth in the coming years due to increasing demand. Therefore, proactively positioning your company in the market and setting it apart from competitors can be highly advantageous.
Learn more about how beneficial an advanced fleet management solution can be for your company and find out how our platform gives you the visibility you need for your business.
Sources:
- (1)https://ec.europa.eu/eurostat/web/products-key-figures/w/key-figures-on-european-transport-2023-edition#:~:text=This%20publication%20presents%20a%20selection,water%20and%20air%20transport%20modes.
- (2-3)https://www.itf-oecd.org/sites/default/files/docs/itf-transport-outlook-2023-launch.pdf
- (4) https://www.researchgate.net/profile/Nitin-Rane-2/publication/370561455_Enhancing_customer_loyalty_through_quality_of_service_Effective_strategies_to_improve_customer_satisfaction_experience_relationship_and_engagement/links/645612ad97449a0e1a7f308a/Enhancing-customer-loyalty-through-quality-of-service-Effective-strategies-to-improve-customer-satisfaction-experience-relationship-and-engagement.pdf
- (5)https://road-safety.transport.ec.europa.eu/system/files/2021-07/road_safety_thematic_report_speeding.pdf
- (6)https://road-safety.transport.ec.europa.eu/european-road-safety-observatory/statistics-and-analysis-archive/fatigue/fatigue_en#:~:text=About%20half%20of%20professional%20drivers,associated%20with%20increased%20crash%20risk.
