Case Charts High Speed Track Growth High Speed
- Slides: 9
Case Charts
High Speed Track Growth High Speed Rail is transforming the travel landscape. In 10 years, European air travel on routes <600 km will be virtually eliminated. 3, 700 mi of HS track at end of 2009, 9 K mi by 2020 ($250 B investment) + 15 Yrs Today Source: UIC For HTMBA Proprietary Class Discussion and Confidential Purposes Only 2
High Speed Rail Supplanting Air 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. Rail Share vs Travel Time Paris-Brussels (15) Share of Travelers on Rail vs. Air 90 Paris-Nantes (8) Brussels-Amsterdam Paris-Lyon (13) Warsaw--Krakow 80 = Existing route = Planned route (X) = # daily flights Madrid-Seville (6) Paris-Leeds (5) London-Plymouth (4) Munich-Frankfurt Stockholm-Gotteburg Istanbul-Ankara New York-Washington(117) Stockholm-Gothenburg (29) London-Paris (48) Moscow-St. Petersburg Paris-Bordeaux (24) London-Newcastle (14) London--Manchester (33) London-Edinburg New York-Boston (85) London--Brussels (42)Rome-Milan Paris-Milan 70 60 50 Lisbon-Madrid 40 Paris-Marseille (43) 30 Rail creates +15% induced travel Stockholm-Malmo (25) 20 London-Edinbugh (45) London-Glasgow (37) 10 2 hrs: 90% share 0 0 0. 5 1 1. 5 2 3 hrs: 70% share 2. 5 3 3. 5 4 hrs: 60% share 4 4. 5 5 5. 5 Travel Time (hours) Sources: Thalys NBTA (5/09), Travel Weekly, (12/4/09), CNBC (11/07) For HTMBA Class Discussion Purposes Only 3
The “Perfect Storm” Consumer Trends Market Deregulation • Rising gas prices • EU deregulation Jan 2010 • Environmental concern/policy • Rail carriers can now compete cross border with air internationally • Air travel/security inconvenience Global Shift to Rail Travel Gov’t Investment Supplier Innovation • New 380 km/h trains • 4 x increase in high speed track globally next 15 yrs • Travel times compete w/ air • $200 B annual investment in high speed rail globally • $500 B in Europe rail infrastructure in next 15 yrs For HTMBA Class Discussion Purposes Only 4
Passenger Rail Sales by Country • $300 B global market • $80 B in Europe • $48 B addressable (long distance leisure + bus. 40% of bkgs, 60% of sales) in Europe • 10 yr CAGR of 8% Sources: UIC "International Railway Statistics” (2007), ATOC “Ten Year Growth Report” (6/07) For HTMBA Proprietary Class Discussion and Confidential Purposes Only 5
European Online Rail Opportunity $48 B market* with only 13% booked online U. S. Online Rail vs. All Travel Europe Online Rail Opportunity Rail All Travel Rail (possible) 59% All Travel $22 B opportunity gap Rail (today) * Long distance leisure + business, excludes commuter and regional Sources: Pho. Cus. Wright 2007 Travel Report, Pho. Cus. Wright 2007 EU OTA Travel Report For HTMBA Class Discussion Purposes Only 6
Silver. Rail Solution Manchester Y DA TO London Booking #2 7 -steps Brussels Booking #3 9 -steps Silver. Rail W Search Results Cologne • 1 search • 1 booking • 4 steps R O M TO RO Booking #1 7 -steps Book All suppliers, one system, one booking = Global Solution For HTMBA Class Discussion Purposes Only 7
GUI Screens (_____) SRT can host the rail home page or provide the search widget For HTMBA Proprietary Class Discussion and Confidential Purposes Only 8
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