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Monday, October 1, 2018

This Crazy Train's Presto Chronicles, Chapter 35: — Lost revenue



Special to This Crazy Train
By Bea N. Counter

Classes are back in session at TCT Academy.  I teach accounting, and I like to share with my students real life financial situations, like the following two brought to light by Ben Spurr of the Toronto Star:







In this article, I won’t dwell on what Mr. Spurr documented.  Rather, I’ll look at how it is possible for PRESTO technology (and some mismanagement) to shortchange GO Transit Bus Ops revenue.

TCT highlighted previously the fragility of PRESTO cards.  What happens when a GO Transit bus driver’s card becomes inoperable (or is lost)?  Quite simply, the bus point of sale device cannot be activated.  No one can tap on; no one can load funds to their card; no tickets can be issued — everyone rides for free with that driver.  It’s a case of lost fare revenue until the driver has a new card.  In one case, it took the driver’s supervisor(s) one and a half weeks to issue a replacement card.

Consider a different scenario.  The PRESTO device on a GO Transit bus synchronizes with the system via WiFi only when the bus is at a garage.  What happens when the WiFi doesn’t work?  A passenger’s card cannot be updated with online fund loads executed after the WiFi failed.  The bus trip(s) made by a passenger won’t appear in their transaction history.  And what happens when the WiFi outage is for an extended period of time, say ten days?  Well, the on board PRESTO device disables itself, and we’re in a period of revenue loss, because everyone rides for free, again.  If you think this is a purely academic hypothetical scenario, it isn’t.  Recently, four buses assigned to Route 12 were in service for over three days in this state of revenue loss.

You are no doubt wondering how GO Transit management could knowingly let the garage’s WiFi sit in a state of disrepair for so long.  And why couldn’t the supervisor(s) change-off the affected buses with ones from Hamilton, or Streetsville, or Steeprock garages?  GO Transit management can authorize chauffeuring one passenger from Union Station to Niagara Falls, but they won’t follow operational process and swap equipment at Burlington GO or P+R — why?  Why did the escalation procedure(s) fail?

In the scenarios cited, will GO Transit’s finance department execute an inquisition to identify the individual(s) responsible for lost revenue and garnishee their wages?  I SURE HOPE NOT.  However, it would behoove Phil Verster, President and CEO at Metrolinx, to have “career discussions” with the GO Transit managers who allow these debacles to play out.  The cost of continued non-compliance outweighs the cost of compliance.

No lesson at TCT Academy is complete without some homework to do.  Seeing as the topic at hand is lost revenue, your assignment is as follows:

The last Niagara Falls seasonal trains of the year will operate on Thanksgiving weekend.  Discuss how you would use your PRESTO card legitimately to travel to The Falls for said weekend and pay less than the discounted PRESTO fare.

Class dismissed!

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