AMBITION

Hitachi Europe wanted to understand how to nudge people to make more sustainable travel choices.  They were specifically interested in how variable pricing which used environmental factors to increase or decrease costs for travel might incentivise customers to make more sustainable choices. 

Methods

We conducted a literature review of different variable pricing models used in the transport sector. We conducted focus groups to understand how receptive consumers are to variable pricing and how they perceived the pricing model when considering the environment. 

Outcomes

Customers were not generally warm to variable pricing citing trust as a key barrier. However, when environmental factors could affect price consumers were more receptive to the idea. 

Follow-up work went on to explore how use of behaviour change techniques, customer segmentation and time pressure influence customers’ travel choices. A trial using a simulated journey planning app found customers’ route choices are influenced by these factors, suggesting it is important to tailor approaches. Results are available vis Sustainability journal.