Rail travel
➔ wifi, bigger seats and power points.
The results have been impressive, with first class passenger journeys surpassing two million for the first time in 2011 (up 12 per cent year on year), before rising a further four per cent last year. The demand for first class travel is clearly still there and the variable nature of the product is not too problematic, according to Turner. "Most organisations with long distance rail travel needs are usually aware of what each operator offers. In recent years, TOCs have vastly improved the information they communicate about their product." Turner does concede, however, that the wide-ranging interpretation of premium class rail travel can cause confusion when it comes to corporate travel programmes. "First class does vary and that can make managing a travel policy difficult. It's too easy to say 'we have a no first class travel policy'," he says, and suggests policy could be decided on a TOC by TOC basis. He also argues the case for flexibility
and the productivity factor. "Many companies are increasingly looking at value, not just price," says Turner. "It's also a growing expectation that if
you’re travelling for business during business hours you need to be able to work. As operators, we need to be able to demonstrate the productivity value of first class travel over standard."
The future So where will the rail industry be in three years? Most industry observers doubt that there will ever be a cohesive approach in a market dominated by owning groups. “Capacity management will still be a major issue,” says Ken Cameron. “People can’t just travel at different times so you can’t shift lots of people onto earlier or later trains. Where are the operators going to put three per cent more passengers every year?” Tony Berry believes that corporates’
focus has already shifted to ensuring that the travel management controls already applied to air and hotels now apply to rail too. “Ironically, airlines are moving towards a TOC-type model with contrasting products and pricing models – key elements in brand recognition. On journeys of up to three hours train operators can benchmark themselves against the airlines and they have got it right. They have used price, greater flexibility and soft benefits to move business travellers to rail, including first class,” says Berry. The need for greater cohesion between
TOCs and for someone to take the lead in approach and delivery across the supply chain would also seem to be as far away now as it was following privatisation. Then again, isn’t that what ATOC is supposed to do? In the words of The Carpenters, we’ve only just begun…
“ Train operators have used price, greater fl exibility and soft benefi ts
to move business travellers to rail, including fi rst class
” Pictured: CrossCountry, Northumberland
44 THE BUSINESS TRAVEL MAGAZINE
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