RAIL has been the only sector of the business travel industry to grow in the last few years, but despite another round of fare increases coming in January, that growth is expected to continue. The Guild of Travel Management Companies' quarterly transaction survey for the April to June period did record a drop, however, suggesting that the rail industry can’t take growth for granted. “Some businesses may choose to move
away from rail onto low-cost carriers, or even back onto the roads,” reckons Anne Godfrey, the GTMC's chief executive. “However, carbon remains a key issue and we can expect to see growth in greener options,” she adds. Rail transactions were two per cent down on
the second quarter of 2010, partly explained by the impact on travel patterns of the Royal wedding being close to Easter. More worrying is that GTMC members made 175,250 fewer rail transactions than in the first quarter – a drop of 14 per cent. The impact of public sector cuts is certainly being felt, but there are also suggestions that some large chunks of rail business have been switched away from travel management companies. The rail industry generally remains bullish,
and average transaction values are slipping below £60 as businesses “buy smarter”, often by buying two single fares in advance, and using off-peak trains for at least one sector. Another major factor is a big move away from first class, especially by the public sector but also by many private companies. This is why the launch of a so-called premium economy rail class, by Chiltern Railways, is particularly timely. Available only on dedicated Mainline business trains between Birmingham Moor Street and London Marylebone, Chiltern’s Business Zone is a carriage of 30 seats with large tables, wide seats, ample legroom, an “always-on” wifi connection and plug sockets at every seat. It is available for a supplement of only £20 on the standard class ticket, but unlike airlines’ premium economy product, does not include food and drink, which is instead available to purchase onboard. Chiltern, which has speeded up the London
to Birmingham route to a best time of 90 minutes, now feels it can make a dent in the much better established Virgin Trains
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