4 minute read
Rail: UK domestic rail operators are working hard to attract the corporate market but there are still barriers to break through
BREAKING DOWN BARRIERS
When it comes to corporate travel, is the rail industry sending the right signals? April Waterston investigates
Pre-Covid, logging onto my local
train line’s delay repay portal had become as much a part of my monthly finance schedule as paying the mortgage. My personal experience with rail travel was tainted by frustration, expense and anxiety about unreliability and, in those early months of 2020, risk.
However, still I seldom considered another travel option for both my daily commute and domestic travel within the UK.
The environmentalist within me couldn’t justify the carbon emissions from driving and, with the chance I could nab a table seat for my laptop, there were hours of uninterrupted productivity to be gained.
It seems that corporate travellers and travel buyers share many of my concerns.
“For corporates with high levels of domestic travel, the key blockers at the moment to choosing rail over air or car are primarily cost, reliability of services, speed and value,” says Scott Davies, CEO, ITM.
“Buyers are looking for a positive overall experience for their travellers when it comes to onboard rail product and a regular, reliable timetable.”
Davies believes the challenge is finding the right balance between pricing and employee productivity. “Travellers want to be able to work effectively on the train, so seating space and reliable and fast WiFi are essential, along with timetables that mean they don’t have to wait for long periods between services on key routes.
“However, the cost of peak time rail tickets and reliability of services just does not provide sufficient value when compared with alternative air travel or going by car,” he adds.
Clive Wratten, CEO for the Business Travel Association, agrees price is the sticking point.
“The key issues for domestic corporate rail travel involve the product offered and the
Buyers are looking for a positive overall experience for their travellers, in terms of onboard rail product and a regular, reliable timetable”
price paid for it. Alternatives such as car hire are currently more attractive due to price, safety and convenience.
“The rail industry needs to evolve with a strong offering at a sensible price point to entice business travellers back post-Covid. "In doing this, station facilities must be upgraded, with ticketing services advanced to improve the ease of journey and reposition rail as the primary choice of corporate domestic transport.”
Easy access
The existing infrastructure is not the only barrier for corporate travel.
Raj Sachdave, Managing Partner at Black Box Partnerships, thinks it’s important to consider what other service providers – like car rental companies, for example – are doing to entice and retain market share.
“When we look at some of the barriers in terms of services technology and content distribution, TMCs have done a pretty good job of integrating rail into online booking tools and their core service provision.
“However, sometimes not having access to all products and the full set of data from the industry challenges the delivery of a good customer experience. There are a couple of blind spots for the rail industry that have to be addressed. It needs to work with TMCs more closely to ultimately grow market share and and to keep customers happy.”
Green credentials
Despite these areas for improvement, rail still has a clear advantage when you throw the issue of sustainability into the mix.
Meeting carbon reduction targets means some of ITM’s buyer members are now encouraging rail travel over air for certain domestic routes, according to ITM's Davies.
“Sustainability will be the driving factor and rail will be front and centre in corporate travel policies," he says.
“The move to green car rental fleets will present short- to medium-term challenges due to insufficient electric vehicles and charging points – this will potentially push business travellers towards train travel options instead.
“The mass use of sustainable aviation fuel is still a way off, meaning rail will be a more attractive sustainable option short term.”
Research from Trainline Partner Solutions (TPS) shows the vast majority of business travellers (75%) want to reduce their reliance on air travel for business because of the impact it has on the environment. To this end, communicating the environmental benefits of rail travel is key.
LNER commissioned OnePoll to conduct independent research and analysis to uncover perceptions about rail, aviation
