Hanoi buses keep losing passengers
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Hanoi single-trip ticket passengers reached 63.6 percent of its annual goal, dropping 36 percent year-on-year, while monthly tickets decreased by 34.3 percent compared to 2019.
Hanoi Transportation Corporation (Transerco) total revenue in 2020 was VND2.5 trillion ($108 million), fell 17.5 percent year-on-year, said Nguyen Thanh Nam, CEO of Transerco, at the Transerco 2020 Review Conference held recently.
Nam said the company is struggling due to market slump. In 2020, Hanoi bus had to cut 80 percent of the trips from March 22 and stop operating from April 1 to April 22. It had no income during the said period yet still had to pay for the operating cost and other expenses.
The reasons were social-distancing and passengers being reluctant to take the bus during the pandemic, resulting in a fall in the number of passengers and single-trip ticket sales.
The free bus passes policy for the elders also contributed to the single-trip ticket sales drop. Airport bus and city-tour bus without price support also had to cut trips as the number of passengers, mostly especially foreign tourists, dropped in 2020.
Transerco revenue in 2021 and the next few years will hardly revive due to the Covid-19 pandemic, free bus passes policy for the elders, and traffic congestion, Nam said.
Hanoi has set the goal of 20 percent of commuters using public transport in 2021 and 30-35 percent in 2025.
Questions & Answers
Q.What is the primary reason for the decline in Hanoi bus passenger numbers and revenue?
What is the primary reason for the decline in Hanoi bus passenger numbers and revenue?
The main reasons include social-distancing measures and passengers' reluctance to use buses during the pandemic. Also, a free bus pass policy for the elderly also contributed to the decrease in single-trip ticket sales.
Q.How significantly did Transerco's revenue fall in 2020 compared to the previous year?
How significantly did Transerco's revenue fall in 2020 compared to the previous year?
Transerco's total revenue in 2020 was VND2.5 trillion ($108 million), representing a 17.5 percent year-on-year decrease. This was attributed to a market slump and reduced operations.
Q.What is the projected outlook for Transerco's revenue in the coming years?
What is the projected outlook for Transerco's revenue in the coming years?
Transerco's CEO stated that revenue will hardly revive in 2021 and the next few years. This is due to the ongoing pandemic, the free bus passes policy for elders, and traffic congestion.
Q.What public transport usage targets has Hanoi set for the near future?
What public transport usage targets has Hanoi set for the near future?
Hanoi aims for 20 percent of commuters to use public transport in 2021. This target is set to increase to 30-35 percent by 2025, despite the challenges faced by bus services.
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