Rail Europe assures travel agents of its commitment despite expanding B2C sales.
- The firm seeks to grow its direct bookings beyond the current one-third share.
- CEO Björn Bender emphasises the focus on B2B while recognising B2C trends.
- Technology platforms enable immediate commissions for rail ticket sales.
- Research predicts a steady growth in non-flight travel options until 2030.
Rail Europe has communicated a clear commitment to maintaining its focus on travel agents as it embarks on plans to grow its direct-to-consumer (B2C) sales. The company, which represents 200 rail providers from across 32 countries, aims to expand its direct bookings beyond the one-third of its current sales. This strategy signifies an effort to tap into the growing trend where 80-85% of train ticket sales in Europe are B2C.
Björn Bender, the Chief Executive of Rail Europe, stated, “We’re definitely [still] focusing on B2B but we also need to be realistic.” The majority of the company’s sales come from non-European visitors, with the UK market contributing 56% to its B2B sales, highlighting its importance. Bender highlighted the potential for growth by noting that markets outside Europe are gradually increasing their demand for rail travel.
The company’s technology platforms are designed to benefit agents directly, providing immediate commissions for every ticket sold. Notable among these platforms is RailFlash, which Bender claims “really meets customers’ needs” by simplifying the purchase process. Rail Europe seeks to achieve a 20-25% annual growth in its B2B operations within Europe and the UK, supported by the positive outlook on high demand.
With research indicating an increasing preference for non-flight travel modes, projected to grow by 3-5% annually until 2030, Rail Europe is poised to benefit from this shift. Bender indicated that every national rail carrier is already experiencing 10-20% growth yearly, and cross-border services are expanding by more than 20% annually, showcasing a healthy demand for rail travel alternatives.
Eurail passes remain a popular choice among UK travellers, with Switzerland being highlighted as a top destination. UK tourists frequently travel to Paris for three nights before heading to Spain by train, reflecting evolving travel patterns. Bender stressed that while the company sees the potential in expanding B2C sales, the travel trade will remain a critical part of their core business strategy.
Bender drew comparisons with Trainline but emphasised significant differences, noting that while Trainline does not sell passes, Rail Europe’s offerings like Swiss travel passes require reservations, presenting distinct challenges and opportunities.
Rail Europe remains committed to the travel trade, balancing B2B and B2C growth.
