case charts. for htmba class discussion purposes only 2 proprietary and confidential 2 high speed...
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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)
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
= Existing route = Planned route (X) = # daily flights
Sh
are
of
Travele
rs o
n R
ail v
s.
Air
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.
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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
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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)
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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
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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-stepsMancheste
r
Booking #17-steps London Brussels Cologne
TODAY
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8Proprietary and Confidential 8
GUI Screens (_________)
SRT can host the rail home page or provide the search
widget
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99