CTT Feb 2004.qxd
10/02/2004
15:28
Page 12
(Black plate)
survey
A sporting chance for smart cards? Smart card technology has much to offer the sports, leisure and tourism industries and, with these sectors becoming increasingly important players in the global economy, they could provide more opportunities for the smart card industry. Many segments of these markets (referred to collectively as the ‘leisure industry’ in this feature) are well accustomed to card-based membership schemes. Potentially, this familiarity could act as a stepping-stone to smart card-based technologies. However, this can only be achieved if smart card technology delivers a strong business case. The use of smart card technology throughout this sector is driven by factors as diverse as customer convenience, fraud control, the ability to provide additional applications on a card, automation and customer relationship management (CRM). In areas such as major sporting venues, for example, faster throughput is extremely desirable. Manchester City FC’s new 48,000seater stadium, for instance, is the first in Europe to be fully contactless smart card access-controlled. According to James Rosenthal, legal counsel, Fortress GB: “Manchester City Football Club (FC) were experiencing fan turnstile throughput of around 300 fans per hour before our system was introduced. Using smart cards, this figure has tripled to around 900 per hour…This increase is due to the fact that tickets no longer need to be ripped from booklets, handed to stewards, checked and then have stewards release the turnstile…” The requirement for automation is also emerging in small health clubs and leisure facilities, where it may be more suitable to provide self-service access in centres that open at 6am and close late in the evening. In such locations, systems may need to be designed to be technically advanced and suitable for selfstacking and self-issuing.
Multi-application Card technology provides much more than simple access-control features, however. With the use of multi-application platforms, a business case connected with bundling applications such as e-purse and loyalty schemes onto one card is beginning to emerge. In turn, such applications are enabling organisations to make significant savings in terms of cash handling. These factors have been particularly
12
strong in areas such as ski resorts, where multiapplication smart cards may be used to access a hotel room, pay for the mini-bar and use ski lifts. Meanwhile, in the public sector, smart cards enable access to municipal leisure facilities to be combined with other applications, such as parking, city cards and a range of government applications. In the UK, Newcastle City Council has adopted multi-application smart cards, which are targeted against specific postcodes in the city. The cards are used to track who is attending the leisure centres, and what facilities they are using within the centres. The scheme, which was established to test smart cards offering more than one application, also includes free school meals for certain school-age children. “This is where the real business case lies as ‘show and go’ magnetic stripe technology is usually sufficient for straight-forward leisure centre membership,” Martin Reilly, senior consultant, Hitachi Europe told CTT. “This is a big area for growth as there is a lot of interest around incentive schemes for promoting healthy eating and healthy lifestyles aimed at targeting a change in behaviour. A cost justification for government is that this could reduce ill health and save the National Health Service (NHS) money. There is also the possibility of private insurance companies coming on board, as they would be interested in life and health insurance customers leading healthier lives.”
Loyalty and CRM Cardholder information is increasingly important as more companies adopt smart cards to fit into their customer relationship management (CRM) plans. Often connected to loyalty schemes, these allow organisations
to collect customer data to understand consumer requirements and better target promotional offers. In particular, providers of visitor and tourist cards are interested in the use of smart cards to carry ticketing and discounts for visitors and tourists to regions and cities. Such passes provide a host of advantages to all stakeholders involved. Tourist attractions, for example, receive marketing data about the people who visit them, which may be useful for direct marketing and cross-selling campaigns. All parties benefit from data that measures the effectiveness of various marketing and advertising campaigns. A city or region can promote its brand effectively through the card. For tourists, the attraction of the card is that it can be used for one, two or three days, and will allow them access to many attractions. They can sometimes also enjoy the benefit for a significant discount over buying tickets separately and the convenience of easier access.
Criminality Smart card technology also plays a valid part in the fight against forgeries. Unlike paper tickets and passes, lost tickets can be blocked. Many systems also make it much easier to identify adults attempting to use junior tickets to enter sports and leisure facilities. Added to the question of forgeries, several professional sports clubs have adopted the technology to improve safety procedures, reduce ticket touting and combat hooliganism. This is being achieved by increasing throughput, and enabling clubs to know exactly who is in their grounds at a given time. Any hooligans can be easily identified by their cards and will have them disabled for future games.
Contactless technology The development of contactless systems is helping fuel the market for smart card technology throughout the leisure industry. Contactless systems are being adopted by fitness centres to store belongings in electronic locker systems securely, as well as for access to facilities. And in ski resorts throughout the world, contactless technology is being used for lift access. These divergent customer segments are sometimes requesting new form factors such as wristbands, gloves and watches to meet the specific demands of the market. In Japan, contactless tags and coins are used for day-pass ski tickets. Leisure facilities such as gyms and health suites are also requesting contactless tags (mostly in a wristband or key fob form), which can be used for every purchase of goods or services within the facilities.
Card Technology Today February 2004
CTT Feb 2004.qxd
10/02/2004
15:28
Page 13
(Black plate)
survey Slovenia-based Metra Inzeniring has implemented smart card systems in swimming pools and fitness clubs in a number of European countries including Slovenia, Iceland, Finland, Croatia, Denmark, Russia, UK and the Netherlands. The company deploys wristbands in volumes averaging some 2000-3000 units. According the supplier’s managing director Mitja Rugelj: “Roll-outs began with contact smart cards 10 years ago, but there is now a push towards contactless technology. It's much more suitable to wear a wristband while in a swimming pool, so the system has been developed to take account of the fact that leisure users typically do not have pockets or bags to store cards in. The swimming pool is a harsh environment to work in, so different readers are required, which are specially developed and deployed in the systems.” Because of the relatively high cost of wristbands (average cost is around 5), the reader needs to retain the wristband after it has been used so that it can be recycled for a new user. Usually, fitness centre users will receive a wristband at the entrance to the centre. This will be programmed to give them access to different areas such as saunas and fitness rooms. Alternatively, they may be used to record that a person has visited a certain area, so that a charge can be made at the end of a visit to the leisure centre.
Game, set and match? In spite of the significant drivers, the market is still held back by technical and business perceptions and fears. There remains a preconception that system installation is more expensive than it actually is. Many organisations are also concerned that a smart card system may not easily integrate into legacy systems. This problem may be further compounded by datacapture requirements. Some organisations – which may not previously have captured data, can find that they have more data than they can cope with. As a result, it may also be necessary to update networks and systems. Further issues that are stopping the market from growing quickly include the relatively low-volume shipments that this market requests. In turn, some industry insiders believe that the market is simply not big enough to attract many of the major players. Added to this, although there are examples of multiapplication technology working successfully, many organisations still face practical and political problems associated with working with multiple partners. One answer to this problem may be for organisations to ‘go it alone’. However, cost justifications are such that many players within the leisure industry do not see an
Card Technology Today February 2004
adequate business case for issuing chip-based cards, unless they are offered as part of a consortium. Meanwhile, standards issues continue to blight the market, with the public sector in particular being reluctant to invest and commit to a system if it thinks it will have to be changed for standardisation reasons. With a lack of customisation still a problem, “the industry needs to provide the expertise and handholding required to make integration possible,” comments Annette Tarlton, marketing manager, Star Micronics. “Until more integrators take the bull by the horns and create membership card/loyalty schemes which are independent of the POS terminal, and can provide an overall system at a sub £2000 (US$3600) level, the market will not grow quickly.”
Creativity Smart cards are enabling members of the leisure industry to apply creativity to their customer offerings, which in turn is helping add value to businesses and improve profitability. In the casino market, coinless gaming offers the possibility of a key differentiator for the first gaming venues to adopt the technology. The use of visual/smart cards – cards which include display panels that ‘communicate’ with the card carrier – at Marlborough Golf Club in the UK has enabled the club to implement a twotier bar pricing system, enabling members to purchase goods at a discounted rate, whilst allocating more commercial prices to nonmembers. Star Micronics estimates that the system is responsible for adding over £9000 (US$16,200) per annum to the club’s bottom line. “The addition of visual elements to cards makes cards more interesting and informative to the user. Many people are frightened of using kiosks to find out how many points they have on their cards,” says Tarlton. Star Micronics’ cards are also used on a ski pass in Japan, as well as in a number of golf clubs and fitness centres around the world. Smart card technology can be used in the company's magnetic particle cards, which are standard credit-card sized, and messages can be re-written up to 10,000 times. Visual smart cards will also soon be rolled out in a UK snooker club, where a conventional loyalty application will be included with a membership module.
Customer demands Increasingly, the leisure sector is demanding that smart card technology works well with large groups of people. The use of paper-based technology enables the technology to be cheaply delivered to millions of people in a disposable format. In 2005, the World Expo in Japan will see the use of such technology.
In the professional sports industry, there is a requirement that all health and safety requirements are met, and almost as importantly that no game is ever delayed. As a result, many systems are designed to work both online, offline, and in the event of power failure. In smaller venues, such as leisure centres, golf clubs and some tourist attractions, customers demand an understanding of floor plans and company policies. In particular, consideration needs to be given to the design of reception areas to avoid queues. The leisure industry often demands robust technologies that are capable of overcoming problems such as wet surfaces. Sometimes, the answer to such challenges is simply to relocate smart card terminals. On other occasions, however, more durable solutions may be required.
More growth Although the leisure, sports and tourism markets still favour magnetic stripe technology, there is a growing tendency towards smart cards. As smart card prices fall, there is little doubt that more venues will adopt the technology for access control, consumer enjoyment, fraud prevention and revenue benefits. Market growth in this segment will be characterised by a step-by-step approach, which some insiders compare to the PKI market – although it is definitely coming, it will take some time to grow. However, real growth will only be realised if integrators really get behind projects, and if solutions provided can be almost off the shelf. In the public sector, smart card technology will be of most use when access to leisure facilities is bundled with other applications. This area will be further assisted by the growing interest in concessionary entitlement and access to services for preventative medicine and social inclusion purposes. This could eventually stretch into the private sector if governments give companies tax incentives to encourage their staff to be healthy. If such incentives are ever launched, a smart card could be the obvious way to promote access to healthy living. As interest in multi-application technology grows, smart cards could be used in more resortbased locations. However, this can only be achieved if divergent organisations can address the political and logistical issues associated with multi-function rollout. With the creative possibilities of using new form factors such as watches, wristbands and key fobs, combined with the numerous opportunities that good CRM affords, smart card technology may become increasingly attractive to leisure users in the future.
13
CTT Feb 2004.qxd
10/02/2004
15:28
Page 14
(Black plate)
survey Location Austria Technical Museum, Vienna
Technical information
No. issued
Launch date
Smart card equipped with Intelligent Code RFID chip from Austria Card. Terminals from Datatronic
—
2003
Additional information: The technology is being used to offer visitors individually tailored and interactive ways of experiencing the museum’s ‘median.welten’ exhibition. Europe Various countries
Contactless wristbands from Metra Inzeniring
Average volumes are 2000-3000 units
—
Additional information: Usually fitness centre users will receive a wristband at the entrance to the centre. This will be programmed to give them access to different areas such as saunas and fitness rooms. Alternatively, they may be used to record that a person has visited a certain area, so that a charge can be made at the end of a visit to the leisure centre. Most of Metra's customers are private fitness centres, although there is some interest from municipal leisure centres. France Espace San Bernardo
Contactless
—
—-
—
—
Additional information: Designed for use at the ski resort for one day or more. Japan Niceko Ski Resort
—
Additional information: Used to access ski slopes. Customers pay at a central point, and the card displays how long it remains valid for. The customers’ use of the resort is tracked and the card is returned for use by another skier at the end of their pre-paid sessions. Ticket PIA
Contact
—
—
Additional information: Ticket PIA is the biggest ticket agent in Japan. This company provides electronic ticket services which issue tickets to the customer’s contact card from their website or kiosk terminals. World Expo
Muchip from Hitachi
25 million
2004/2005
Additional information: Hitachi will be providing 25 million of its paper tickets containing the Muchip for the 2005 World Expo in Japan. Netherlands PSV Eindhoven
Mifare Ultralight cards
—
2002
—
January 1999
Additional information: Soccer club card containing information such as seat number. South Africa Sun International Casino
Payflex multi-application smart cards
Additional information: Features debit, loyalty and e-purse functions. Customers are given a smart card when they enter the casino. The card is charged with money using the note acceptor in gaming machines. Stakes are debited electronically. When customers leave the casino, winnings can be exchanged for a cheque or paid directly into a bank account. Card and user authentication is carried out within the slot machines using the same kind of Security Access Module (SAM) that is used in POS terminals and ATMs. Information on every transaction is transmitted to a central server. The system is integrated with the casino management software, and is used for monitoring and improving casino operations. Sweden Golfkortet
Terminals provided by Point Sweden
—
—
Additional information: Contains player’s membership details, handicap and a Proton-based e-purse. Switzerland Engadin Card
LEGIC 1024 byte contactless cards
—
Winter 2002/2003
Additional information: This card provides access to ski lifts in the Oberengadin Ski area. Customers can make payments and receive discounts through the card. It also enables users to book over the Internet through a ‘direct to lift’ initiative. UK Liverpool FC/Smart FC Scheme Contactless card scheme developed by Fortress GB
—
—
Additional information: This is similar to the system at Manchester City FC, but is in an earlier stage. It integrates ticketing with access control, ticket issuing, fan management, loyalty, time attendance and e-purse applications.
Figure 1. A selection of smart card implementations in the sport/leisure/tourism market.
14
Card Technology Today February 2004
CTT Feb 2004.qxd
10/02/2004
15:28
Page 15
(Black plate)
survey Location
Technical information
No. issued
Launch date
London Pass
—
—
1999
Additional information: Operators involved in the scheme include visitor attractions, restaurants, cinemas and tenpin bowling centres. The pass can include local public transport and comes with a guidebook about the city. Similar schemes also operate in York and Bath. Manchester City FC/Smart FC Scheme
Contactless card scheme developed by Fortress GB
150,000+
—
Additional information: This is the first wholly RFID smart card entry system in Europe. All fans, both home and away, (including season ticket and nonseason ticket holders) have to use smart cards to enter the stadium. The terminals have been flush fitted to each of the stadium’s 90 fan access points (turnstiles). Supporters can buy a ticket on the football club Web site, download it to their smart card and pay for it using the same single card. Supporters can also shop and bet on the FC Web site and gain access to exclusive club information for supporters. Marlborough Golf Club
Visual/smart card technology from Star Micronics
—
—
Additional information: Holds member identification details, and is also used as a ‘cashless bar’ solution to facilitate a two-tier bar pricing system. The system is being expanded to communicate subscription renewals, pro shop offers and targeted marketing initiatives to golf club members, as well as integrating the automated handicapping system and cashless bar system. Newcastle City Council
Smart card technology from Hitachi Europe
—
30,000 between schools and leisure services.
Additional information: Used to track who is attending the centre, and what facilities they are using within the centre. The cards may also include free school meals for eligible children in targeted postcode areas. TeamCard
—
—
—
Additional information: TeamCard has been installed at a number of UK football clubs including Chelsea, Bolton, Crystal Palace and Millwall. USA Park City Mountain Resort
Smart Access System from Rapidtron. Software from Resort Technology Partners
—
April 2003
Additional information: Pass designed for adult full-season pass holders and multi-day ticket purchasers (of 4 or more days) access to an express lane on 4 of the resort’s most popular lifts. The RF smart cards are individualised with the customer’s photograph. USA and Europe
Contactless smart card, token or other chip-based data carrier from Ski Data (eg watch or ski gloves).
—
2002
Additional information: Winter sports tickets can be pre-booked over the Internet, and used in resorts in Germany, Austria, Spain, France and USA.
Figure 1. A selection of smart card implementations in the sport/leisure/tourism market.
Market survey contacts Company
Name
Tel
Fax
Email
AdvancedWave
-
+44 1844 292935
-
[email protected]
Fortress GB
James Rosenthal
+44 20 7874 7593
+44 20 7874 7599
[email protected]
Hitachi Europe
Martin Reilly
+44 1628 585754
+44 1628 585440
[email protected]
JCB
Julie Krueger
+1 213 896 3727
-
[email protected]
Junghans Uhren
-
+49 7422 18 360
+49 7422 18 403
[email protected]
Legic Identisystems
Stephen Neff
+41 1 933 64 64
+411 933 64 65
[email protected]
Leisure Pass Group
-
+44 1664 500 107
-
-
Metra Inzeniring
Mitja Rugelj
+386 1 561 0741
+386 1 561 0744
[email protected]
Rapidtron
-
+1 949 798 0652
+1 949 474 4550
[email protected]
Star Micronics
Annette Tarlton
+44 1494 688804
+44 1494 473333
[email protected]
TeamCard
-
+44 1334 476504
+44 1334 479201
[email protected]
Card Technology Today February 2004
15