Rail Europe reassures trade amid plans to grow B2C sales

Rail Europe has assured travel agents they will continue to represent its “core” business despite plans to grow direct bookings.

The company, which sells 200 rail providers from 32 countries, intends to boost its B2C sales beyond the one-third they currently account for.

Chief executive Björn Bender said: “We’re definitely [still] focusing on B2B but we also need to be realistic. Across the industry today in Europe, when it comes to train tickets, 80-85% of sales are already B2C.”

The majority of tickets sold through Rail Europe are used by non-European visitors.

Noting the extent of the company’s B2B business in Europe, Bender said 56% came from the UK trade.

“The UK is of course an important market for us,” he added.

The company’s technology platforms allow agents to receive “immediate commissions” for every ticket sold, he said, adding that RailFlash in particular “really meets customers’ needs”.

Rail Europe’s aim is to achieve 20-25% growth year on year in its B2B business in Europe and the UK amid signs high demand looks set to continue.

Bender cited research suggesting that non-flight modes of transport will grow in popularity by 3-5% every year until 2030.

“That means millions more people travelling every year in the rail industry,” he said.

Every national rail carrier has been growing by 10-20% year on year, he added, while cross-border providers have recorded growth of more than 20% annually.

“I don’t see any end to this in the coming years,” Bender said, welcoming the “very high demand and very good discussions around train travel and the climate”.

Eurail passes continue to sell well among UK travellers, while Switzerland stands out as one of the most popular destinations.

“We also have a lot of UK travellers going to Paris and staying for three nights before going down to Spain by train,” he said.

Asked about the company’s plans to generate more B2C sales, Bender said: “When it comes to our growth projector and our business plan we see a need to go into the B2C field because it’s the bigger part of the cake, but the travel trade is our core business and our core business will always remain the core of the company.”

Bender said Rail Europe shares characteristics with Trainline, but he claimed there are also “huge” differences.

“Trainline is not selling passes,” he said, adding: “Swiss travel passes are easy to buy but not easy to travel with because you need reservations.”