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How long have
you been associated with Rail Europe and how has rail travel
across Europe grown during this period?
I began my journey with Rail Europe in April 2005. We started as a
liaison office in India because we had a distribution network of
general sales agents and there was a strong need to sell and
promote the product through that distribution network. Starting
the liaison office was inevitable and gaining as much knowledge as
possible was the need of the hour.
For the first few years, the focus was on augmenting distribution
as well as creating and imparting product knowledge. These were
huge tasks as Rail Europe is not a product which can be sold by
any agent. It needed certain skill sets and an understanding of
Europe; the continent and the destinations. Knowledge of the
product itself was also essential. The agents had to understand
how the Rail Europe network helps clients optimize their holiday
experience.
We concentrated heavily on these aspects in the beginning as the
business was growing. When the company started, it was worth 5
million Euros. Last year, it doubled to 10 million Euros, which
speaks volumes. This is just in India and not taking into account
the entire South Asian market which we also serve from our India
office.
The growth and trends in the Indian market made Rail Europe look
at India as a very important market. In April 2008, Rail Europe
started its first fully-owned subsidiary outside of Europe. The
primary objective of setting up this subsidiary in India was to
launch the websites to cater to clients and agents. We found many
agents, such as Compact Travels, who are very capable of servicing
clients and booking products online with us directly.
Additionally, there was an entire online segment of clientele that
was not being adequately serviced by the GSA network as these were
more evolved travellers. |
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Instead of
cannibalization of the business from the existing distribution
network however, we decided to augment it even further. And that
is exactly what happened. Since we have launched the websites, the
response has been phenomenal. For the agent website, we still need
to address the hurdle of imparting skill sets. Travel agents in
India need to go beyond the travel agent mentality and be a
consultant as well. Today, consultancy is becoming the key word,
which is where the internet can play a significant role.
In the light of airlines removing commissions, Rail Europe would
be a huge source of revenue for agents as our commissions are not
likely to be zero and, at the same time, are substantially higher
than what airlines offer. Even though railways commissions have
been decreasing also, we would still offer revenue sources to the
agents booking our products.
When we first started, we were known as the Eurail pass company.
Today, we see that Rail Europe has established itself as a brand
to be reckoned with; not just associated with selling Eurail
passes which comprises just 10% of the product base. There is so
much more to European rail than Eurail. And Rail Europe provides
the total European travel solution.
For example, the Swiss Pass which is the highest selling pass from
India, is not associated with Eurail. Although it is a member
company of the Eurail consortium, the Swiss Pass is an exclusive
product of Swiss Travel System which is a subsidiary of SBB. The
France Rail Pass also has nothing to do with Eurail. They are two
different products. The high-speed trains, such as Eurostar, are
independent companies as well. The Eurail pass is not even valid
for travel on Eurostar.
The TGV Lyria which connects France and Switzerland is 50% owned
by the French railways and 50% owned by the Swiss railways.
High-speed trains are also rail subsidiaries. Thalys, for example,
is a 40% French, 30% Belgian and 30% Dutch railway company. Rail
Europe is the official distributor appointed by such rail
subsidiaries.
One of the biggest indicators of our success is that 50% of our
tickets are point-to-point tickets; not passes. This shows the
maturity of the Indian traveller. The learning curve has been much
quicker for the Indian traveller. Although markets such as Japan
and Korea are still traditionally the fast markets, India has
evolved quickly. Indians understand that point-to-point tickets
would make better sense as they are sure of their itinerary and
they are informed about the product.
South Asian markets are not lagging so far behind, though there is
a significant gap between India and Pakistan which is the next
highest market. India as an economic powerhouse has greatly
evolved in the last 5 years. China is a fast-growing market, but
still very much behind India.
Amongst the global markets, the United States is one of the
biggest markets outside of Europe. Australia and Korea are similar
with about 3 and a half times India's business. These are followed
by Japan and then by India, which speaks volumes about the
importance of this market. As Japan, Korea and Australia are
saturated in terms of business levels, India has the potential to
reach and go beyond these levels. This is why we focus a lot of
energy on India. The decision of opening a fully-owned subsidiary
reflects and justifies this. |
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What factors
have influenced the growth of rail travel across Europe?
Increasing distribution and accessibility has played a major role
in the growth of rail travel across Europe. This accessibility has
made it easier for an agent to make bookings. The greater the
number of outlets issuing tickets, the easier it is to reach
agents and consumers. This is a key factor. Educating agents as
well as consumers of the options in terms of rail travel also
helped increase business. Considering new segments such as
business travel is also crucial.
The common visa across mainland Europe makes a huge difference as
well. For example, obtaining a visa for Slovakia was a major issue
until a few years ago. Today, it is no longer an issue and
journeys to Slovakia are growing in popularity. You can go from
Prague to Budapest via Slovakia and not require a visa.
Switzerland joining the Schengen countries has been a tremendous
boon for us and will increase business even faster.
Bollywood is another big driver for us, in the sense that people
see the heroes and heroines ride these trains and aspirations are
built on that. Word-of-mouth promotion is also very strong. People
who have travelled in Switzerland by train tell their friends that
if you are going to Europe and not experiencing the train, the
European experience is not complete. |
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What are the
initiatives taken to ensure that more visitors to Europe from
India use rail travel as their preferred option?
There is a big market to be tapped in India. Business travel
was not addressed until recently. In the business segment, many
people did not know that people generally do not fly from London
to Paris. We explained to agents and consumers the convenience of
a rail journey from London to Paris. It is just 2 hours and 25
minutes. There is no wait at check-in as is the case with
airlines. The cost of a budget airline may be 60 Euros, whereas
the Eurostar is priced at 100 Euros. We explain however that the
cost of the taxi from a city-centre hotel to the airport would
more than balance that equation. This was part of the education
that we were trying to impart to the agents. There is
Business-Class service on the Eurostar. A leisure traveller can
break his journey in Paris and go on to Rome via a night train,
thus saving the hotel cost. There are many benefits of travelling
by rail. Eurostar alone caters to twice the number of passengers
of all airlines put together on the routes between London and
Paris, and London and Brussels, which amounts to 80% of market
share. These numbers would not be so vivid if it did not make
economic sense to travel by rail.
The biggest challenge is the carrying of luggage. The Indian
traveller is not used to carrying their luggage unlike the Western
counterparts who are more adept at carrying their own luggage.
Trends are changing however with the growing popularity of wheeled
luggage. There are elevators and walkways at the train stations as
well as sloped stairways for wheeling your luggage. Furthermore,
most European train stations are adjacent to the airport. For
example, upon arriving in Zurich, you can reach the train station
in 5 minutes after clearing immigration.
There is also the fear of losing your luggage. We have to educate
agents and consumers alike that travelling by rail is as safe and
secure as any other form of transport. We also educate the travel
agent about the importance of understanding symbols and the
general protocol at train stations. To compile such extensive
information in a brochure is not an easy task. That is why the
internet was very helpful as all information could be stored and
accessed with ease. Many travel agents are given online access to
product fact sheets which includes such information.
All our activities strive to establish the concept of a Rail
Europe holiday. An end-consumer may want the luxury of a Rail
Europe holiday without having to wonder how to create or optimize
his own rail experience or rail product. This is where the agent
plays a vital role in assisting them. We advise the agent
regarding trains, passes and other details of the rail package.
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What are the
strategies adopted by Rail Europe to ensure that there is greater
awareness about the conveniences of rail travel in countries like
Italy and Germany?
We collaborate with the national tourism offices of all
European countries, especially with France, Switzerland, Italy,
Britain and the Netherlands. We will also be in touch with Germany
and their tourism office. Germany is especially very popular for
the business traveller from India. We have many entrepreneurs
using the German Rail Pass to travel within Germany.
The beauty of such countries is that not all trains require
reservations. There are very few sectors and very few high-speed
trains where reservations are required. If you have a pass, you
generally have direct access for travel by rail. In Switzerland,
none of the trains require reservations except for the scenic
trains. Accordingly, with a Swiss Pass, you can simply board a
train, bus, boat or anything that moves in Switzerland and
continue with your journey. The Swiss Pass is very unique in that
way. It is the only rail pass that includes the entire public
transportation system. |
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What are the
advantages of various pass systems if you book your pass before
reaching Europe?
The main advantage of a pass is that you do not have to wait
in long queues to buy your tickets. Information regarding the
train scheduling is also provided to you well in advance for
booking your reservations. If you buy a pass and your journey
includes a high-speed train, reservations are required.
Furthermore, you have the option of booking your reservations
immediately before the journey. That is the complete flexibility
of a Rail Europe product. For example, you have a pass and you
want to board a high-speed train, but are not sure which train to
take as there is a train every half hour. The flexibility of a
pass allows you to book your reservation at the counter by showing
your pass and paying a supplement. Conversely, if you are clear of
your journey time, you may book your reservation well in advance
of your trip and simply arrive at the station 20 minutes before
the train leaves. |
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As you have a range of passes, how
can one decide which is the right rail pass when planning one’s
visit to Europe?
There is a “Find Your Perfect Rail Pass” option on the website
and it will supply all the options that are available starting
with the best option to other possible options. For example, a
3-country pass may also work for you, but it may not necessarily
be the right pass for you. This online feature provides you with
all the options in order of use and importance.
As language is a
major barrier for English-speaking visitors, how comfortable is it
for visitors to use rail services across non-English speaking
countries?
There are a few pockets in the interior regions of Spain,
France and some regions of Eastern Europe where language may be an
issue. However, it has not become a barrier as such. Most rail
officers speak English. Fortunately, Indians are very prolific at
sign language and they manage to communicate without any hassle.
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Which routes
have decreased in journey time in the past 12 months and which are
the new routes to be introduced in the coming year?
The Paris-Frankfurt route is a classic case. The route used to
be a 6-hour journey, but now it takes 3 hours and 45 minutes. This
is because of France using a high-speed track through their
initiative called TGV Est European. Currently, the high-speed TGV
train connects Stuttgart to Paris in 4 hours and Paris to
Frankfurt in 3 hours and 45 minutes. These trains are clocking 70%
of the market share on that route. To put this in perspective, if
you could travel from Delhi to Mumbai in 4 hours by train, I am
certain people would avoid taking a flight because the total
journey time would be about the same. |
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Explain the Fly
Rail system.
The Fly Rail system is a very unique product. When you check
in to your flight from India, you pay a $20 fee. Your luggage then
goes directly to Interlaken, instead of you having to pick it up
from Zurich. This is available on a wide selection of European
carriers, not just Swiss Air.
It is very encouraging that Indian travellers are now starting to
use this service. Interlaken is about a 2 hour and 40 minute train
journey, but the journey is very relaxing. When they arrive, their
luggage soon follows. Most hotels in Switzerland offer a concierge
service wherein they pick up your luggage. While checking in, you
simply provide the concierge with the necessary document and your
luggage will be picked up from the station and delivered to you at
the hotel.
Personally, I always use and recommend the Fly Rail system,
especially when we organize familiarization trips for travel
agents. The response is that it is an excellent service.
We also have our fast baggage service for an additional cost. For
example, if you are planning most of your journey by rail, but
your destination is from one end of Switzerland to the other end,
you can use our fast baggage service. Your baggage is delivered to
your hotel from Geneva in western Switzerland to St. Moritz while
you take the train journey. Currently, these services are more
popular in Switzerland. It is also available in certain sectors in
France, but it is not as prolific yet.
Does Rail Europe offer a Rail-Drive package and how does this
work?
We do have certain Rail-Drive packages in our North American
market, but we have not yet introduced this concept in India. We
feel the Indian traveller still relies on the travel agent who is
able to provide the “Drive” component more effectively than what
we would do. Our core business is rail, so we would rather focus
on that. |
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Does Rail Europe
also offer Rail-Sea/ Rail-River combinations, especially as there
are several waterways across Europe?
Some rail passes do allow such combinations. For example, if
you buy a Greece-Italy-Switzerland combination, your journey by
ferry from Italy to Greece is included. In the north, Finland and
Germany are connected through ferry services, as is the
U.K.-Amsterdam combination. There is also the journey from France
to Ireland which is included in the rail pass. |
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Talk us through
some of your popular routes such as the Eurostar between London
and Paris or the newest high-speed train between Paris and
Strasbourg?
Eurostar is a very popular train connecting London to Paris
and Brussels. The TGV Lyria is also very popular with the Indian
traveller. People rave about the train service. It connects Paris
to cities in Switzerland like Bern, Geneva and Zurich in
approximately 4 hours. I was with a group of well-travelled media
representatives from India and even they were in awe of the
seating conditions of First-Class. The consensus is that it is far
superior compared to an airline in terms of comfort. There is also
the added luxury of walking throughout the train while enjoying
the panoramic views. The windows are well-designed for optimum
viewing.
Some trains, such as Eurostar, have a meal included; a 5-course
meal is included in the First-Class ticket. The Thalys includes
the cost of the meal in First-Class tickets. The TGV allows you to
buy a meal at your seat if you are in First-Class. While the train
is cruising at 350 km/hour, you can have piping hot coffee without
having to worry about it spilling on you. It is truly a
comfortable option. It is no wonder that high-speed trains have
become very popular with Indian travellers. |
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Which are the 3
most scenic trains worth taking whilst visiting Europe?
Personally, I love the journey from Lucerne to Martigny which is
by Lake Geneva. It offers one of the most spectacular views of
Lake Geneva. There is also the ever-popular Glacier Express
between St. Moritz and Zermatt. Another route I personally enjoy
for the sheer thrill of the high-speed rail experience is the
journey between Paris and Marseille or Paris and Nice
There is also the Eurostar, which people have great expectations
of the underground tunnel experience. Unfortunately, a few usually
come back disappointed. I have heard Indian travellers commenting
that they thought they would see sharks and fish – much like an
aquarium. However, it is simply a 20 minute journey through the
tunnel. At the same time, if you have not travelled by the
Eurostar, people are surprised as it has become that sort of
status symbol. In that manner, Eurostar is also a necessary
experience. |
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According to
you, which are the unique rail experiences across Europe?
Different individuals have different perceptions. Some Indians
say that the height of Mont Blanc is nothing compared to Everest,
but the Mont Blanc Express is one of the biggest favourites. You
can experience one of the highest railway stations in Europe;
literally called top of Europe.
In terms of high-speed rail, the domestic routes in France have
the highest average speeds that one can experience on a train. The
domestic routes in Germany are also very popular, although
slightly less fast than the TGV counterpart.
Personally, I love the Thalys, the high-speed train which connects
Paris to Amsterdam and Brussels. The service is impeccable whether
you are a business traveller, a family, a honeymooning couple or
simply in transit. |
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Which are the
main rail networks and regions that you intend to promote in 2009?
We intend to promote Scandinavia in 2009 as we have some very
good products for that region. Of course, Switzerland remains the
ever-popular product with the Swiss Pass being the highest selling
from India. High-speed trains will be another major focus area as
the Indian traveller has come a long way in terms of maturity of
travel.
Lastly, what is your message to readers who are planning a
European holiday?
Make sure you have a Rail Europe experience built in to your
Europe holiday. Make it a Rail Europe holiday. |
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