New report says Covid pandemic changed public transport forever

In September 2024, industry peak body the Public Transport Association Australia New Zealand (PTAANZ) and global strategy consultancy L.E.K. Consulting released a report that takes a deep dive into how the Covid pandemic changed the way we travel around our cities and towns in Australia and New Zealand.

The Mobility Beyond the Pandemic report says public transport ridership has returned to over 80 per cent of pre-pandemic levels across the region, however when and why we travel has changed, with a decrease in work-related travel and more leisure trips.

The report highlights the urgency of changing the way we travel. Transport is the fastest-growing source of emissions in the region. In Australia, the transport sector contributes 19 per cent of all emissions, 60 per cent of which are from passenger cars and light commercial vehicles. In New Zealand, 20 per cent of all emissions come from transport, with nearly 70 per cent of all transport CO2 emissions from cars, SUVs, utes, vans, and light trucks.

PTAANZ Chief Executive Lauren Streifer says mode shift, changing how people get around, will have a positive impact on carbon emissions.

“Transport will play a critical role in achieving net zero and assuring a sustainable, liveable, and equitable future.

“We can reduce carbon emissions from transport if more people walk or cycle, which creates no emissions, or take public transport, which is more energy efficient,” Ms Streifer said.

The report authors are calling for dynamic approaches to not just get public transport patronage back to what it was before the pandemic, but to get more people using public transport, more often.

Mark Streeting, Senior Partner at L.E.K. Consulting and Vice Chair of PTAANZ, says the approach must include both incentives to use public transport and disincentives for jumping in the car.

“We are at a critical juncture in history where we must fight for reform and innovation in the way people move around our communities. We have settled into a ‘new normal’ post the Covid pandemic and must now focus on tackling the climate crisis. Essentially, we must do everything possible to make public and active transport more appealing travel choices,” Mr Streeting says.

The report highlights nine key themes for improving public transport mode share, including service delivery improvements, modal competitiveness and strategies to accelerate net-zero goals.

Governments in New Zealand and Australia have laid a strong foundation for decarbonisation through investments in electrification of bus and rail networks, but also in improving service delivery, reform and innovation, the report says. These initiatives are crucial for achieving long-term climate goals and reducing the carbon footprint of our cities. Overseas, disincentives for private car use, such as London’s Ultra Low Emission Zone (ULEZ) have proven successful in increasing public transport mode share. In London, the public transport mode share increased to 65 per cent and this is largely attributed to progressive measures to discourage private car use.

Transport authorities in New Zealand and Australia are investing in service delivery, reform, and innovation to drive mode shifts. According to the report, increasing frequency, coverage, and network integration are top strategies being used to increase mode share, particularly by focusing on off-peak and weekend services. For example, studies found that doubling service frequency can increase patronage by up to 30-40 per cent with higher impacts for off-peak and weekend services.

Additionally, on-demand services are addressing first and last-mile issues, making public transport a more flexible option for users. The report notes on-demand services in NSW, like the Ponds service operated by Cooee Busway, delivered over 80,000 rides in nine months, with 55 per cent of passengers previously using private cars. These innovations are key to adapting public transport to shifting travel patterns. Pricing strategies, such as fare caps and discounts, are also playing a role, but the report suggests that service improvements—such as bus prioritisation and real-time information—are more impactful for increasing patronage in the long run.

The report also highlighted that initiatives such as real-time service updates and better communication on crowding and reliability are
essential. For example, Austroads evaluated several case studies where on-road bus priority was installed and found that even low-cost projects can deliver significant travel time improvements for buses and significant patronage uplifts.

The full report is available online and in this video, L.E.K. Consulting Partners, Mark Streeting and Natasha Santha, discuss how public transport systems can embrace service innovation, drive modal shifts and enhance environmental sustainability.

About L.E.K. Consulting

We’re L.E.K. Consulting, a global strategy consultancy working with business leaders to seize competitive advantage and amplify growth. Our insights are catalysts that reshape the trajectory of our clients’ businesses, uncovering opportunities and empowering them to master their moments of truth. Since 1983, our worldwide practice — spanning the Americas, Asia-Pacific and Europe — has guided leaders across all industries, from global corporations to emerging entrepreneurial businesses and private equity investors. Looking for more?

About PTAANZ

The Public Transport Association Australia New Zealand (PTAANZ) is the peak industry body for all modes of public transport and sustainable mobility options across Australia and New Zealand. Our members include transport authorities, operators, manufacturers, suppliers, advisory firms and research institutes working to build and sustain world-class transport networks that meet the needs of the communities we serve. We partner with our members to drive optimal economic, social and environmental outcomes through transport. More information.