RIGHT ON TIME
Rail travel across Europe is evolving – and so are business travel patterns and preferences
Signs of a rail renaissance are everywhere. Maybe it’s because 2021 is the European Year of Rail, but other portents of change are in view. In the same year the UK hosts the COP26 climate summit, all eyes are on sustainable forms of transport. Many more are also aware of the Greta Thunberg-inspired flight-shaming movement. In a post-Covid, Zoom and ESG-conscious era, rail travel simply makes more sense.
According to research by Swiss Bank UBS, the Coronavirus crisis could accelerate the shift of passengers from air to rail, post-lockdown, contributing to greater than expected growth in the rail sector across Europe in the next ten years.
“There’s a growing appetite amongst travel managers to look at rail as a viable option for short-haul, direct air routes, to help drive the sustainability agenda,” explains Catherine Logan, regional vice president for EMEA at the Global Business Travel Association (GBTA). “Yet the challenge remains around multiple operators and disparate systems hindering a seamless booking process,” she adds.
Rail’s bright future doesn’t yet translate into vastly more tickets for business travel, even though trains have lower emissions than other forms of transport. They may also be a no-brainer for short to mid-length trips – city centre to city centre trips where passengers can be productive onboard with wifi connectivity. But the offering isn’t quite universally there yet.
“The big issue is that rail needs to recognise the importance of the corporate sector and the supply chain, including TMCs, as well as the end customer. The rail industry is too inward-looking and has a weak record of customer-centricity. This needs to change,” says Clive Wratten, CEO of the Business Travel Association (BTA). “We also need a seismic shift in collaboration between European and UK rail operators to make booking simpler and more effective.”
A number of UK train operators have engaged directly with the travel industry over the last 18 months. The pandemic and the precipitous decline in all travel was a catalyst. “Train operators have showed an impressive commitment and investment in challenging circumstances,” states Scott Davies, CEO of the Institute of Travel Management (ITM).
“Further integration of booking technology with existing travel and expense tools would also be beneficial, along with a sustained investment in product developments like better wifi and touchless ticketing.”
This is echoed elsewhere in Europe. “In Sweden there is a challenge with booking and payment. It is far too complicated and expensive to use TMCs for rail reservations. The GDSs are incorporating more rail in the display, but it needs to be easier. Processes are not automated and connected to the extent they need to be,” states Lotten Fowler, general manager for the Swedish Business Travel Association.
TRAVELLERS EXPECT MORE FROM RAIL
The consensus is that in many countries the customer experience still falls short of expectations. “This is true of both corporate travellers and buyers, particularly when it comes to providing an end-to-end experience. These challenges can be overcome,” says Jason Geall, senior vice president and general manager Europe at American Express Global Business Travel. “This is why we created the Rail for Business Forum to bring together key partners from the rail industry with clients.”
A number of major developments are likely to help catalyse change in the UK: HS2 in the long-term, while the recent Williams-Shapps Plan for Rail signposts the way for a simpler operating model. If well executed this could present a real step-change in the sector. “Right now, the demand for rail content is growing by the day,” expresses Pat McDonagh, CEO of Clarity Travel.
In Europe, we can see that rail is being actively promoted and favoured through legislation rather than domestic flying. It also helps that there is a growing high-speed network for intra-European travel
According to the UBS report the liberalisation of the European rail market is expected to ‘profoundly’ impact both the frequency and affordability of high-speed services. With Europe’s one trillion Euro Green Deal on the table this is likely to see a further boost to the sector as the bloc moves to a low-carbon economy.
“Liberalisation is the key thing that will support this, but also a closer collaboration among existing rail providers would be helpful,” states Christoph Carnier, president of VDR, the Business Travel Association of Germany. “They [operators] should also look outside their existing network and give access to connections and seamless ticketing to make rail trips as easy as possible.”
REGULATION NOW FAVOURS RAIL
The legislative mood music certainly favours rail across the continent. Germany is cutting taxes on rail and raising them on air. In France, SNCF is discounting journeys to win back travellers lost due to Covid. In April, the French government approved a law banning domestic flights shorter than two and a half hours. Forget flying between Paris and Bordeaux or Nantes. “Sadly, the UK government is yet to act so decisively,” says Edmund Caldecott, the CEO of Whoosh.
Champa Magesh, president of Trainline Partner Solutions, adds: “Given rail generates less than five per cent of the CO2 emissions of air travel and approximately 15 per cent when compared to car travel per passenger, it’s understandable that businesses are promoting rail as the alternative.
“Another driving force is that, to support sustainability goals, governments across the world are investing significantly in the future of rail and this will translate into greater incentives for businesses to take the train.”
Alstom recently trialled the world’s first hydrogen fuel cell passenger train, highlighting the potential for even more sustainable rail transport. These super low-emission trains could be active within five years.
In the UK, a system that will help reduce delays due to “leaves on the line” and a new rail loyalty programme are among a number of innovations that have won funding from the UK’s Department for Transport and Innovate UK.
In total, 30 projects won a share of a £9 million pool as part of the First of a Kind competition that is designed to stimulate pioneering technology that can improve journeys for travellers, encourage passengers back onto the network and reduce the environmental impacts of rail.
Any new investment in rail will need to be backed by a revival in ticket sales, otherwise the industry is likely to stutter. TripActions saw a 47 per cent increase in European rail bookings for June, growth that reflects the groundswell return to travel, but also the move towards rail for domestic and short-haul travel.
“We’re seeing more corporate buyers revise travel policies to stipulate rail rather than air. This is definitely driven by corporate sustainability goals,” explains Simone Buckley, vice president marketing for EMEA at TripActions.
Longer term, digitalisation and better connectivity in the UK and Europe through a myriad of interconnected operators is likely to support further uptake.
“More so than ever, it’s the value for money lens. Organisations and travellers want to experience a smarter journey that reflects their price point and some level of flexibility, without having to buy a ‘full fat’ fare,” details Raj Sachdave, managing partner at Black Box Partnerships.
Signs of a rail renaissance are everywhere. Maybe it’s because 2021 is the European Year of Rail, but other portents of change are in view. In the same year the UK hosts the COP26 climate summit, all eyes are on sustainable forms of transport. Many more are also aware of the Greta Thunberg-inspired flight-shaming movement. In a post-Covid, Zoom and ESG-conscious era, rail travel simply makes more sense.
According to research by Swiss Bank UBS, the Coronavirus crisis could accelerate the shift of passengers from air to rail, post-lockdown, contributing to greater than expected growth in the rail sector across Europe in the next ten years.
“There’s a growing appetite amongst travel managers to look at rail as a viable option for short-haul, direct air routes, to help drive the sustainability agenda,” explains Catherine Logan, regional vice president for EMEA at the Global Business Travel Association (GBTA). “Yet the challenge remains around multiple operators and disparate systems hindering a seamless booking process,” she adds.
Rail’s bright future doesn’t yet translate into vastly more tickets for business travel, even though trains have lower emissions than other forms of transport. They may also be a no-brainer for short to mid-length trips – city centre to city centre trips where passengers can be productive on-board with wifi connectivity. But the offering isn’t quite there yet.
“The big issue is that rail needs to recognise the importance of the corporate sector and the supply chain, including TMCs, as well as the end customer. The rail industry is too inward looking and has a weak record of customer-centricity. This needs to change,” details Clive Wratten, CEO of the Business Travel Association (BTA). “We also need a seismic shift in collaboration between European and UK rail operators to make booking simpler and more effective.”
A number of UK train operators have engaged directly with the travel industry over the last 18 months. The pandemic and the precipitous decline in all travel was a catalyst. “Train operators have showed an impressive commitment and investment in challenging circumstances,” states Scott Davies, CEO of the Institute of Travel Management (ITM).
“Further integration of booking technology with existing travel and expense tools would also be beneficial, along with a sustained investment in product developments like better wifi and touchless ticketing.”
This is echoed elsewhere in Europe. “In Sweden there is a challenge with booking and payment. It is far too complicated and expensive to use TMCs for rail reservations. The GDSs are incorporating more rail in the display, but it needs to be easier. Processes are not automated and connected to the extent they need to be,” states Lotten Fowler, general manager for the Swedish Business Travel Association.
TRAVELLERS EXPECT MORE FROM RAIL
The consensus is that in many countries the customer experience still falls short of expectations. “This is true of both corporate travellers and buyers, particularly when it comes to providing an end-to-end experience. These challenges can be overcome,” says Jason Geall, senior vice president and general manager Europe at American Express Global Business Travel. “This is why we created the Rail for Business Forum to bring together key partners from the rail industry with clients.”
A number of major developments are likely to help catalyse change in the UK: HS2 in the long-term, while the recent Williams-Shapps Plan for Rail signposts the way for a simpler operating model. If well executed this could present a real step-change in the sector. “Right now, the demand for rail content is growing by the day,” expresses Pat McDonagh, CEO of Clarity Travel.
In Europe, we can see that rail is being actively promoted and favoured through legislation rather than domestic flying. It also helps that there is a growing high-speed network for intra-European travel
According to the UBS report the liberalisation of the European rail market is expected to ‘profoundly’ impact both the frequency and affordability of high-speed services. With Europe’s one trillion Euro Green Deal on the table this is likely to see a further boost to the sector as the bloc moves to a low-carbon economy.
“Liberalisation is the key thing that will support this, but also a closer collaboration among existing rail providers would be helpful,” states Christoph Carnier, president of VDR, the Business Travel
Association of Germany. “They [operators] should also look outside their existing network and give access to connections and seamless ticketing to make rail trips as easy as possible,”
REGULATION NOW FAVOURS RAIL
The legislative mood music certainly favours rail across the continent. Germany is cutting taxes on rail and raising them on air. In France, SNCF is discounting journeys to win back travellers lost due to Covid. In April, the French government approved a law banning domestic flights shorter than two and a half hours. Forget flying between Paris and Bordeaux or Nantes. “Sadly, the UK government is yet to act so decisively,” says Edmund Caldecott, the CEO of Whoosh.
Champa Magesh, president of Trainline Partner Solutions, adds: “Given rail generates less than five per cent of the CO2 emissions of air travel and approximately 15 per cent when compared to car travel per passenger, it’s understandable that businesses are promoting rail as the alternative.
“Another driving force is that, to support sustainability goals, governments across the world are investing significantly in the future of rail and this will translate into greater incentives for businesses to take the train.”
Alstom recently trialled the world’s first hydrogen fuel cell passenger train, highlighting the potential for even more sustainable rail transport. These super low-emission trains could be active within five years.
In the UK, a system that will help reduce delays due to “leaves on the line” and a new rail loyalty programme are among a number of innovations that have won funding from the UK’s Department for Transport and Innovate UK.
In total, 30 projects won a share of a £9 million pool as part of the First of a Kind competition that is designed to stimulate pioneering technology that can improve journeys for travellers, encourage passengers back onto the network and reduce the environmental impacts of rail.
Any new investment in rail will need to be backed by a revival in ticket sales, otherwise the industry is likely to stutter. TripActions has already seen a 47 per cent increase in European rail bookings for June, growth that reflects the groundswell return to travel, but also the move towards rail for domestic and short-haul travel.
“We’re seeing more corporate buyers revise travel policies to stipulate rail rather than air. This is definitely driven by corporate sustainability goals,” explains Simone Buckley, vice president marketing for EMEA at TripActions.
Longer term, digitalisation and better connectivity in the UK and Europe through a myriad of interconnected operators is likely to support further uptake.
“More so than ever, it’s the value for money lens. Organisations and travellers want to experience a smarter journey that reflects their price point and some level of flexibility, without having to buy a ‘full fat’ fare,” details Raj Sachdave, managing partner at Black Box Partnerships.
COVID-19 PANDEMIC BOOSTS APPETITE FOR RAIL TRAVEL
Concern over catching Covid during the airport and flight experience spurred a renewed interest in using rail for business travel in the latter stages of the pandemic, according to a recent survey. The study of 1,000 regular business travellers, by Trainline Partner Solutions (TPS), found that three out of five business travellers say they are more likely to consider using rail for their business trips compared to before the pandemic.
The biggest factor putting business travellers off flying was concerns over Covid health and safety (41 per cent of respondents). Other reasons cited for taking the train instead of flying include getting to destinations quicker, being able to work while travelling, and the convenience of departing and arriving in city centres. When journey times are similar between rail and air, 90 per cent of respondents said they would prefer to take the train over flying or driving.
The environmental impact of air travel is also a key factor for some. One in five (20 per cent) say they want to use rail to reduce their carbon footprint. And some 81 per cent of travellers would support a ban on short business flights where a train journey is available, similar to the recently approved policy in France.
Champa Magesh, president of TPS, which provides access to rail and coach content to TMCs and online booking tool providers through an API, said: “When business travel returns, it will not look the same as before the pandemic. One clear long-term trend is employees planning to reduce the impact their travel has on carbon emissions and reduce road travel and short-haul flights.
“Given rail generates less than five per cent of the CO2 emissions of air travel and approximately 15 per cent when compared to car travel per passenger, rail is the clear alternative.”
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