27 June 2018. This is a key date for rail transport in France, as it corresponds to the promulgation of the reform for a more efficient rail system. new rail deal including, as its main measure, the opening up of passenger traffic to competition. Although this has been in force since 2009 on international linesThis law authorises new players to operate rail services on the domestic lines from 12 December 2020. Several operators have already expressed an interest in competing with SNCF in the coming months. A large majority of French people are looking forward to impatience this opening...
27 June 2018. This is a key date for rail transport in France, as it corresponds to the promulgation of the reform for a more efficient rail system. new rail deal including, as its main measure, the opening up of passenger traffic to competition. Although this has been in force since 2009 on international linesThis law authorises new players to operate rail services on the domestic lines from 12 December 2020. Several operators have already expressed an interest in competing with SNCF in the coming months. A large majority of French people are looking forward to impatience This opening up of the market was prompted by the high, even exorbitant, fares for TGV travel, and by the fact that the market had been recurring strikes the national rail company.
The home stretch
SNCF has been preparing for the 12 December 2020 deadline for years. In the home straight, it has set about segmenting its high-speed offering between its Premium TGVs, deployed under the inYesand low-cost ones Ouigo. To keep its business customers coming back for more, the railway company has also launched a new offer in autumn 2018. Business 1era on the main business routes from Paris to BordeauxLille, Lyon, Marseille, Montpellier, Nantes, Rennes and Strasbourg. With a TGV Pro 1 ticketeraThese travellers have a dedicated inOui car and exclusive services access to the Grand Voyageur lounges, fast check-in line on the platform, tea or coffee reception in front of car 1era class, free press, WiFi on board, taxi or VTC booking available. "Our obsession is customer satisfactionsays Jérôme Laffon, Marketing Director at Voyages SNCF. Our priority is to understand expectations so that we can stay in pole position. We respond to the different needs of our customers with specific price offers and dedicated services."
At theinternationalSNCF has also taken a lead by setting up subsidiaries with national operators, whether with CFF in Switzerland for TGV Lyriathe Belgian and Dutch companies SNCB and NS for Thalysthe Deutsche Bahn to Germany via Alleo or the Renfe on the Franco-Spanish axis... So many partnerships that could be shattered if some were to venture out on their own. "Opportunities are opening up abroad, and we intend to seize them."adds the Voyages SNCF marketing director. In the meantime, SNCF is going to further lock in its positions in Northern Europe through Green Speed, l'alliance between Eurostar and Thalys expected by 2021If only the European Commission would give its blessing to this marriage. Clad in a thick ecological sailFor the French rail company, this merger has the advantage of making it more difficult for competitors to enter the market on the routes served by its two subsidiaries, five European countries Belgium, France, Germany, the Netherlands and the United Kingdom.
Le business market Weighing in at 20 % at Eurostar and 47 % at Thalys out of the 18.5 million passengers carried annually, pro travellers should be delighted with the opportunities offered by this merger. "The benefits for our customers will be substantial, with correspondence and harmonised, the implementation of a joint loyalty programmea mobile application and a unique websitesaccess to lounges of the two carriers in addition to offers ofsubscriptions unpublished"explains Marc Noaro, Director of Customer Experience at Eurostar. Other advantages of this merger are that it will open the doors of Germany to Eurostar and avoid the two companies competing with each other on Brussels–Amsterdam. On this section of the route, the closer links would also make it easier to withstand competition from Dutch Intercity Direct trains, whose journeys are just an hour longer.
Between Germany and the UK, the horizon is all the clearer because the Deutsche Bahnwhich tested the waters in 2010 by running an ICE to London's St Pancras station, seems to have buried its plans to compete with Eurostar on routes between the British capital and the continent. On the France-Switzerland route, TGV Lyria is also displaying a degree of serenity with regard to the possible arrival of a new rail operator. "We've got a lot of experience, because all our roads are already very exposed to traffic. competition from airlines. TGV Lyria is counting on its strengths and the ongoing renewal of its entire range of services to consolidate its leading position."says Fabien Soulet, the company's CEO.
In the starting-blocks
With competition set to open up in just over a year's time, the new entrants are not crowding the quays. "Le admission ticket is likely to be very high for a rail operator wishing to gain a foothold in France, starting with the train sets that need to be mobilised."explains Jérôme Laffon. In addition to possibly having to exit a joint venture with SNCF, this player will have to have authorised rolling stock in France, recruit staff to ensure traffic flow, but also to invest in the ticket distribution or in the communication and the marketing to promote its brand and its offers.
"The opening up of the market has benefited customers with a 25 % reduction in prices, as well as an improvement in the quality of service".
Roberto Rinaudo, Thello
However, several competitors not linked to SNCF are in the starting blocks, with some even announcing dates for the introduction of their rail services. Requests for traffic have been submitted in recent months to theAraferthe French rail regulator. Among the contenders Italian railway company Trenitalia is already present in France through its subsidiary Thello which offers a Paris-Milan night train and six Marseille-Nice-Milan day services. Its plan is to operate two daily high-speed return trips between Paris and Milan from June 2020. Thello will be competing with SNCF on the entire service, especially on the Paris-Lyon section, where it will be seeking to attracting business travellers thanks to the possibility of making the round trip during the day.
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These trains, with a capacity of 457 passengers and travelling at 300 km/h, will have 76 Premium seats and 69 Business seats. "We are well prepared, because competition already exists in Italy with high-speed trains Italo. This openness has benefited customers with 25 % fall in prices in addition to a improving service quality"Roberto Rinaudo, Managing Director of Thello, is quick to point out that ".Thello is currently the the only alternative rail operator for passenger transport in France". It should be noted that SNCF, which joined the Italo TGVs in 2012 via a 20 % stake in its operator NTV (Nuovo Trasporto Viaggiatori), stepped down in 2015.
From "Macron coaches" to trains
Of course, the SNCF will retain an undeniable advantage between Paris and Lyon with its dozens of daily TGVs, allowing a faster, more efficient service. maximum flexibility with free refundable and exchangeable tickets in Business 1era. The axis Paris-Lyonone of the busiest in France and one of the most profitable with its 40 million passengers a yearis attracting a lot of interest. In addition to Thello, FlixTrain also intends to venture into this area by January 2021 with five connections a day from Paris Bercy. The use of this secondary station, from which its trains will also run to Toulouse (2 trains/day) and Nice (a daily service, probably at night), is favoured by the rail subsidiary of the German group FlixMobility because of its proximity to the Bercy Seine bus station, a hub for itsFlixBus coach.
On the other hand, the two daily Paris-Bordeaux trains soon to be launched by Flixtrain will be operated from the Gare d'AusterlitzSeven Paris-Brussels North connections are also planned at Paris-Nord station. In Germany, FlixTrain is already competing with Deutsche Bahn by operating high-speed trains on the following lines Berlin-Hanover-Frankfurt-Stuttgart, Hamburg-Essen-Cologne and Berlin-Hanover-Cologne. In the absence of a fleet of high-speed trains in France, its target will mainly be leisurelike on the Paris-Brussels route, where FlixTrain will be competing with Thalys and its offer. low cost Izy.
To theSpainthe competition between Renfe, the Spanish national carrier, and SNCF is already shaping up to be epic, with each side eyeing the other's market, with the Pyrenees as its border. This could derail the current partnership between the two carriers in Elipsos Internacional, which manages links between several Spanish and French cities.
Renfe wants to run AVEs - the equivalent of our TGVs, also built by Alstom - between Lyon and the south of France, particularly Marseille. Renfe's Board of Directors has approved the creation of a subsidiary in Francebased in Lyon, and has submitted the necessary authorisations for its operation to Arafer, EPSF (the French rail safety authority) and SNCF Réseau. However, Lyon will only be a bridgehead before a planned AVE terminus at a Paris station by 2023. For its part, the SNCF will be making a big splash in Spain through its Rielsfera subsidiary and the weapon OuigoA low-cost TGV offer is absent from the Spanish high-speed market, which has a ceiling of 21 million passengers a year.
The opening up to competition in a number of sectors in France, such as telecoms, has been a stimulating factor in terms of improved service and lower prices.
The French company has won the tender launched by Adif, the Spanish equivalent of Arafer. From 14 December 2020When the Spanish market opens up to competition, it will be able to offer five round trips a day. Madrid-Barcelona, five from Madrid to Valencia and Alicante, and five from Madrid to Seville and Malaga. The second surprise was that 20 % of the frequencies at stake were won by the Ilsa consortium, which includes Air Nostrum and Trenitalia. Renfe is doing well by winning Lot A, the largest lot, which will enable it to increase its daily frequencies on these three routes by 20 %.
The opening up of several sectors to competition in France, such as telecoms, has been a stimulating factor in terms of improved service and lower prices. This deadline, which is fast approaching, has already had an impact on the economy. positive impact on SNCF by improving its TGV services. But if rail competition is to make inroads in France and boost traffic, the financial conditions will have to be attractive. tolls. Four times more expensive than in Italy and double that of Germany, they make it difficult to bring prices down significantly at their current level. SNCF Réseau promises a tiered pricing from 2021, with discounts for all new entrants.
In the same vein, the question of furrows granted to these operators will have to be settled. Will they be borrowed from SNCF TGVs or regional trains? For these alternative services to develop, customers will also need to have the necessary relevant information on brands, frequencies, fares and on-board services. Not forgetting, of course, distribution methods.
