case charts
DESCRIPTION
Case Charts. High Speed Track Growth. High Speed Rail is transforming the travel landscape. In 10 years, European air travel on routesTRANSCRIPT
Case Charts
For HTMBA Class Discussion Purposes Only 2Proprietary and Confidential 2
High Speed Track Growth
3,700 mi of HS track at end of 2009, 9K mi by 2020 ($250B investment)
Today + 15 Yrs
Source: UIC
High Speed Rail is transforming the travel landscape. In 10 years, European air travel on routes <600km will be virtually eliminated.
For HTMBA Class Discussion Purposes Only 3
High Speed Rail Supplanting Air
Sources: Thalys NBTA (5/09), Travel Weekly, (12/4/09), CNBC (11/07)
1 1.5 2 2.5 3 3.5 4 4.5 5 5.50
10
20
30
40
50
60
70
80
90 Paris-Brussels (15) Paris-Nantes (8)
Paris-Leeds (5)Madrid-Seville (6)
London-Plymouth (4)
London-Paris (48) Stockholm-Gothenburg (29)Paris-Bordeaux (24)
London-Newcastle (14)
Paris-Lyon (13)
London--Brussels (42)London--Manchester (33)
New York-Washington(117)
Paris-Marseille (43)
Stockholm-Malmo (25)
New York-Boston (85)
London-Glasgow (37)London-Edinbugh (45)
Brussels-Amsterdam
Munich-Frankfurt
Lisbon-Madrid
Rome-Milan London-Edinburg
Moscow-St. Petersburg
Paris-Milan
Warsaw--Krakow
Istanbul-AnkaraStockholm-Gotteburg
Rail creates +15% induced travel
= Existing route = Planned route (X) = # daily flights
Shar
e of
Tra
vele
rs o
n Ra
il vs
. Ai
r
Travel Time (hours)
2 hrs: 90% share
4 hrs: 60% share
3 hrs: 70% share
Rail Share vs Travel Time
Most new HSR track will be on routes where travel times will be <2.5 hours and HSR has 75%+ share. Without rail, OTA’s will lose their two key value propositions: convenience of booking air + hotel together,
and net rate packaging.
For HTMBA Class Discussion Purposes Only 4
Market Deregulation
• EU deregulation Jan 2010• Rail carriers can now compete cross border with air internationally
The “Perfect Storm”
Consumer Trends • Rising gas prices• Environmental concern/policy
• Air travel/security inconvenience
Supplier Innovation• New 380km/h trains• 4x increase in high speed track globally next 15 yrs
• Travel times compete w/ air
Gov’t Investment
• $200B annual investment in high speed rail globally
• $500B in Europe rail infrastructure in next 15 yrs
Global Shift to Rail Travel
For HTMBA Class Discussion Purposes Only 5Proprietary and Confidential 5
Passenger Rail Sales by Country
• $300B global market• $80B in Europe• $48B addressable (long distance leisure +
bus. 40% of bkgs, 60% of sales) in Europe• 10yr CAGR of 8%
Sources: UIC "International Railway Statistics” (2007), ATOC “Ten Year Growth Report” (6/07)
For HTMBA Class Discussion Purposes Only 6
All Travel
Rail
All Travel
Rail (today)
Rail (possible)59%
Sources: PhoCusWright 2007 Travel Report, PhoCusWright 2007 EU OTA Travel Report
European Online Rail Opportunity$48B market* with only 13% booked online
* Long distance leisure + business, excludes commuter and regional
$22B opportunity gap
U.S. Online Rail vs. All Travel
Europe Online Rail Opportunity
For HTMBA Class Discussion Purposes Only 7
SilverRail Solution
Search Results Book
TOMORROW
All suppliers, one system, one booking = Global Solution
SilverRail• 1 search• 1 booking• 4 steps
Booking #27-steps
Booking #3
9-stepsManchester
Booking #17-steps London Brussels Cologne
TODAY
For HTMBA Class Discussion Purposes Only 8Proprietary and Confidential 8
GUI Screens (_________)
SRT can host the rail home page or provide the search
widget
For HTMBA Class Discussion Purposes Only 99