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Priyanka Agarwal

UM4002-1

Revenue Management - Bus Rapid Transit System Ahmedabad

Aim of public transportation is not to earn profit but to provide service to all. Due to which the scope is limited to non - fare box sources to yield maximum revenue.  Advertisement Model is a source of non-farebox that could be  managed due to limitation in other asset and inventories of Ahmedabad Janmarg  as it is a subsidiary of Ahmedabad Municipal Corporation. Proposal to Contract out Semi-Naming Rights is taken up after the analysis of past advertisement model and their low contribution in revenue. Semi-Naming Rights  over BRTS bus shelters and corridor elements is evaluated and formula is derived.


Report Content

Sources of revenue in urban bus transportation : Farebox & Non-farebox.

Deficiency from the income is covered by AMC to cover the expenses. Advertisement and Bus fare income are the two major sources in Non-farebox and Farebox respectively.

Advertisement model is analysed to understand its scenario in Ahmedabad.

Semi-Naming is proposed which is being practices in Metro Stations in Delhi, Mumbai, etc. to generate revenue through majorly suffix/prefix of Brand name with stations name along with other elements.

Existing Market rate of advertisement is analysed and compared with the rate AJL. has been charging to understand the potential to yield revenue. Strategy to devise Semi-Naming Rights is formulated.

Semi-Naming Right reflects brand value which needs to be derived. Simply, Outdoor Advertisement rate are not sufficient.

Factors are derived over which Naming-rights would depend and accordingly weighted. The ratio would help to determine the rate for proposed station with the existing one.

Terms of Semi-Naming rights Contract are defined and thier ability to further expand in future is well analysed.

Components of the contract are to be determined by AJL. setting the scope of contract.

Incorporation of Semi-Naming rights with the other elements,i.e. Flyovers, Glow cubes expresses immense potential to generate revenue for the Organization.