With IZY, Thalys explores the low-cost route

IZY: the new low-cost alternative on the Paris-Brussels route (Photo Regis Faller)

At the end of an eventful 2015, marked both by the terrorist attacks and - internally - by its transformation into a rail company, Thalys is entering 2016 with new ambitions. The carrier is introducing a new low-cost service, called IZY, to face up to the growing competition on the Paris-Brussels route, while at the same time enhancing its business offer with the inauguration of new lounges in Brussels and soon Düsseldorf.

 

Thalys' management had planned to make 2015 a pivotal year, with the launch of the transformation into a rail company. Although the management of this transformation did not seem to affect the company, the financial year ended up being much more eventful than expected, in a context of terrorist attacks which, in fact, directly affected Thalys with the attempted attack on 21 August. In the end, Thalys was able to report stable traffic (-0.1%) for 2015, even though sales fell slightly (-1.7%). The company estimates the loss of revenue following the attacks at some 14 million euros, and stresses that the signs were green at the end of the first half of the year, both in terms of traffic (+2%) and sales (+0.8%).

 

Agnès Ogier, CEO of Thalys, at the presentation of the new IZY low-cost offer
Agnès Ogier, CEO of Thalys, at the presentation of the new IZY low-cost offer

 

These mixed results do not, however, detract from the ambitions of the rail company, which is continuing its efforts to attract business customers. These include the inauguration in March of a business lounge at Brussels-Midi station and, by next summer, a new lounge in Düsseldorf. The rail company is also taking care of its connectivity - an undeniable advantage for its customers. value added in the rail sector - replacing its wi-fi system to improve efficiency.

 

The new Thalys lounge opens in Brussels in March (DR David Plas)
The new Thalys lounge opens in Brussels in March (DR David Plas)

 

But it is in the field of leisure that Thalys is sharpening its weapons to face up to the growing competition from coach companies, while awaiting the arrival of new rail competitors from abroad, who should soon be launching an assault on the particularly attractive Paris-Brussels route. On Tuesday, the company unveiled its new low-cost offer, named "IZY", which is reminiscent of one of Europe's leading low-cost transport operators, albeit at a different altitude. Two SNCF trains will be given a new look over the next few weeks, and from 3 April they will carry the green colours of the new company. There will be no bar car, and the à la carte service model will govern this new alternative between Gare de Paris-Nord and Gare de Bruxelles Midi. By avoiding the XL seat (110 out of 393 seats), presented as the equivalent of the Comfort 1 seat in Thalys, and leaving out a second piece of luggage which is often superfluous for a short journey, passengers will be able to access a maximum fare of 59 euros. The introductory price is 19 euros, while a number of "folding seat" tickets (15 euros) and even tickets without a guaranteed seat (10 euros) offer even cheaper alternatives.

IZY, low-cost according to Thalys
Thalys uses IZY to increase rail travel between Paris and Brussels by 10%

 

"Business travellers will not be affected by this offer", warns Thalys management, referring in particular to off-peak departures and non-flexible tickets. The company is therefore focusing primarily on the leisure segment, with the stated objective of increasing rail travel on the Paris-Brussels route by 10%. Thalys thus intends to "increase the size of the cake", as the people in charge of the Izy project put it, with - perhaps - the idea that the number of players claiming a share should continue to grow over the coming months...