MAY/JUNE 2013
Rail
months, taking away some of the need to use desktop printers.” He adds: “The rail industry has been slow to move with mobile ticketing, but it is looking at setting standards and it is inevitable that this will come.” Evolvi’s Reeve agrees: “The market wants any journey to be fulfilled by a barcode on a mobile device or plain paper. But it’s difficult to do that with the limitations of the rail infrastructure.”
CALCULATING TRUE COST Unlike Evolvi,
Thetrainline.com also deals with corporates direct, and is working with them to identify the true cost when they allow people to book tickets themselves – including missed opportunities to choose lower fares, and the cost of reimbursing expenses.
Thetrainline.com’s head of account management, Clare Morrissey, says: “We definitely believe there is still growth in the market, as many clients still don’t mandate rail travel. When corporates
“The market wants any journey to be fulfilled by a barcode on a mobile device or plain paper – but it’s difficult to do that”
have our ‘cheapest ticket’ travel policy tool turned on, 84 per cent of purchases are for the cheapest ticket for that journey.” She adds: “Our app is now being extended to business bookings, but it is a mechanism to book tickets rather than a complete end-to-end business system.”
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KEEP IT SIMPLE TMCs and buyers are happy with the savings and efficiencies offered by online booking systems, but express some frustration that rail is not as simple to book as air. HRG reached a milestone in the year ending November 2012 when, for the first time, it booked more rail tickets in the UK than air or hotels. HRG director of industry and fare distribution, Tony Berry, says: “It’s interesting to look at how competition between airlines and rail companies on UK domestic routes is evolving, with product enhancements and flexible price playing a key part, particularly in first class. UK business travellers prefer rail travel to air on routes of three hours or less, and
“WE ARE SORRY TO ANNOUNCE…”
UPHEAVAL IN THE GOVERNMENT’S franchising system for Britain’s railways could delay the industry-wide introduction of technology to make possible ticketing by mobiles and other smart devices. The Department for Transport (DFT) was found to be at fault in last year’s debacle over renewal of the key West Coast franchise, covering the main business routes from London to the West Midlands, the North West and Scotland. The franchise award to First Group was later rescinded, with incumbent Virgin Trains being allowed to continue. The fiasco – which will end up costing taxpayers tens of millions of pounds – has led to an ongoing review of the franchising system, and the announcement of a new timetable for franchises due to be renewed over the next couple of years. Although not formally announced, it now seems likely that the DFT will opt for shorter franchises of up to around eight years in future. Problems forecasting revenue growth further into the future arose with the West Coast franchise renewal, which was due to run for 14 years until 2026. But shorter franchises discourage train operators from the major
investment needed in new infrastructure, such as electronic barriers and ticket readers able to recognise mobile or smart tickets. The DFT has announced that another key business route, East
Coast, will be put out to franchise again by February 2015, having been effectively nationalised since 2009 when National Express walked away from the franchise. Virgin Trains will continue to run West Coast until April 2017, and several other major franchises have been extended while the DFT gets its act together. The Great Western franchise (First Group) will now run until July 2016 instead of ending this year. Evolvi’s trade relations director, Jon Reeve, comments: “Short-term franchises mitigate against the wider adoption of new ticket fulfilment techniques. Train operators will not want to spend a lot on infrastructure, or any other large capital expenditure, if their franchises only have a few years to run.”
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