High Speed Rail

Market share on city pairs, is it taken for granted?

Is it taken for granted that rail will win over the market share for city pairs around the world? I recently commented on a blog in the US about Should Airlines Fear High-Speed that in Europe there is a definate one sided battle when rail travel times for long journeys are reduced to under 3 hours. However, even though the US administration has pledged a large amount of money for high speed network, it may still have to compete against the modern car (or automobile as my US colleagues would say) as the infrastructure is still heavily geared towards this form of transport.

16 Jun 2009

Posted by: Philip Martin

Comments

Phil, that's a good point and a reminder that we must not be too Euro-centric! What works in one place, one culture, might not work in another.
However, I believe that consumers (wherever they are) are reasonably rational and not wholly fixated on any particular mode. They know they are here and want to be there: they need information about the optimal way to get there.
The optimal way will vary with a lot of factors. Are they travelling alone or with a family? Have they got a lot of luggage or just a briefcase? Who is paying? What's the availability of a direct flight or a direct train? What's highway congestion likely to be like? What is the availability of parking? All of these factors will be processed by travellers in the light of what they actually know or believe or what they can easily find out. Information is key, but prejudice also comes into the equation! People need to be able to find out easily what they need to know to make the best decision for them in their particular circumstance - and they'll do what is best for them.

By Andrew Sharp on 30 Jun 2009

According to a recent study by Phocuswright:
"Technology and innovation have made railways a bigger threat to low-cost carriers (LCCs) than traditional airlines, especially in the short haul travel segment. High-speed routes can often provide a viable alternative to air travel with regard to total travel time, comfort and environmental impact. However, this comparison does differ from region to region."
http://tiny.cc/v7LSU which goes inline with Andrew's comments that we cannot be jus eurocentric for this model to work across the globe.

By Phil Martin on 21 Jul 2009

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