As domestic travel ebbs and flows, the potential that lies in travel ticketing as a value-added service (VAS) becomes more apparent. With a well-built and supported service, your business can meet the expectations of both new and existing consumers. These are some of the factors to consider when building your travel ticketing offering.

Come peak season, South African consumers will be travelling across the country to spend time in their hometowns or on holiday. Many of these consumers will be taking long-haul bus trips, as it’s the third most popular mode of transport in South Africa. Some of them will purchase their tickets directly from bus operators, while others will book with trusted retailers. The growth and popularity of this digital good and service presents a clear opportunity. If you already offer a ticketing service, there are a few easy ways to optimise your service. If not, ticketing makes an obvious next addition to your VAS portfolio. But first, let’s take a look at what long-distance bus travel looks like in South Africa.

What drives the rise of long-haul bus travel

While long-distance bus travel has been a top choice in South Africa, it is gaining popularity due to the rising cost of fuel for cars and flights. We compared one-way ticket prices for three prominent routes across operators on Busbud and airlines on Cheapflights during peak festive season travel, and we found that:

• Some flight tickets on the Johannesburg to Durban route cost over 270% more than bus tickets on the same route;

• Some flight tickets on the Johannesburg to Cape Town route cost nearly 360% more than bus tickets on the same route; and

• Some flight tickets on the Cape Town to Gqeberha route cost over 400% more than bus tickets on the same route.

_{*Prices are based on tickets for travel on 16 December 2023, with flights limited to direct journeys, as at 2 November 2023.} 

Travel fare metasearch engine, Cheapflights, even added buses to its search due to an average increase of 112% in users looking for bus tickets, as reported by the Bus Price Index. As a business that started as a flight directory, this addition of bus trips shows the weight they carry as an increasingly popular mode of transport. As a retailer, offering a bus ticketing service can put you in a position to earn favourable commissions as this service is in high demand.

What to consider when expanding your VAS portfolio with travel ticketing

The rise of long-haul bus travel means you can grow your business by offering reliable and convenient travel ticketing services. Here are key factors to consider when doing so:

1. The ability to provide full coverage 

Integrating with multiple long-distance bus ticket providers is an essential way to cater to the diverse needs of travellers. You can either directly integrate with multiple providers or you can benefit from a technology partner that ensures access to a range of providers, giving your consumers more travel options. This strategy extends your reach to destinations that may not fall on major routes, opening up new market segments for you.

2. A frictionless customer experience

Consumers don’t want to be stuck in long queues or face failed transactions - they want to reliably choose and pay for the ticket that suits their needs. Having a travel ticketing service that comes with support for multiple providers can offer a broader selection to your customers to ensure a successful purchasing outcome. With features like service health checks, it can reduce failed transactions by routing requests accordingly. Together with mobile-friendly channels, intuitive interfaces, and quick response times, you can achieve smoother customer experiences; encouraging repeat business as well as attracting new business.

3. Efficient system monitoring

It’s crucial that you have full visibility of transactions to ensure system health and to maintain service reliability. Implementing a monitoring tool ensures transaction visibility and the rapid resolution of issues. Real-time alerts enable you to promptly diagnose and troubleshoot anomalies, preventing customer frustration and cart abandonment.

4. Variety of sales channels

Flexibility and convenience play a major role in how consumers choose to make purchases. According to the 2022 Digital Goods and Services Report, consumers prefer to purchase tickets through bank apps, in-store, and from money market counters. This is an indication that there’s an opportunity for you to diversify your sales channels, offering both physical and digital options. This way, your business meets consumers where they prefer to transact.

5. Scalability

Fluctuations are a constant in the world of domestic travel. Having scalable software and infrastructure can help you to prepare for high volumes as ticket sales fluctuate. This ensures that you can accommodate sudden surges in demand, such as festive season travel, without compromising performance.

Harnessing the travel ticketing opportunity is about understanding the market and tapping into the relevant resources to bring the best possible service to life. It starts with partnering with the right organisations. 

Contact us to discuss how Electrum can help you build out your Travel Ticketing service by enabling you to conduct both reservations and payments for ticketing services.