Opportunities Today : March / April  2009 Issue

Mr. GOPI IENGAR EXECUTIVE DIRECTOR - RAIL EUROPE (INDIA & SOUTH ASIA)

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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.

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.

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.

 

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.

 

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.

 

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.

 
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.

 

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.

 

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.

 

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.

 

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.

 

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.

 

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.

 

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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