Eurailspeed Parallel Session A.2. Karl-Heinz Garre Head of Vehicle and Infrastructure Planning Departement, DB
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1 Eurailspeed Parallel Session A.2 Karl-Heinz Garre Head of Vehicle and Infrastructure Planning Departement, DB
2 Eurailspeed 2005 A2 Managing the supply of high-speed rail services (The ICE pricing politics) DB Fernverkehr AG Netz- und Kapazitätsmanagement 2 P.TVN 4 Milan, 09. November 2005
3 Existing and planned ICE-network Target: Finalized ICE-network in 2015 Realized: Hannover-Wuerzburg (1991) Mannheim-Stuttgart (1991) Hannover-Berlin (1998) Frankfurt-Cologne (2002) Hamburg-Berlin (2004) Köln Under construction: North-South-Tunnel Berlin (2006) Munich-Nuremberg (2006) Explanation 200 to 230 km/h 250 km/h+ optional (realization not secured) Planned: Hamburg/Bremen-Hannover Nuremberg-Erfurt-Leipzig Frankfurt-Fulda Rhine/Main-Rhine/Neckar Stuttgart - Ulm + Stuttgart 21 Karlsruhe-Basle 3
4 Shortened travel times are essential success factor of ICE; Attractive travel times allow high market shares Travel times from Frankfurt to: Rail market shares Passenger transport in Germany Hannover 02:18 03:21 Hamburg 03:34 04:39 100% Stuttgart Zurich Munich Berlin Cologne Brussels Amsterdam 01:18 02:11 01:10 02:14 03:53 06:11 03:37 (3:23) 04:30 04:03 (3:29) 03:32 05:17 03:53 05:08 07: () Sprinter 80% 60% 40% 20% 0% All O&Ds Frankfurt - Stuttgart Frankfurt - Hamburg Frankfurt - Munich market share all other modes market share rail Frankfurt - Berlin 4
5 ICE-concept successful in Germany! Demand for ICE has more than doubled since ICE today accounts for more than 48% of train-km Commissioning of ICE-track Cologne- Rhine/Main % 58% % indexed 200 Commissioning of ICE-track Hannover-Berlin 48% % % % HST-Demand ICE HST-share ICE of all train-km 5
6 The integration of ICE traffic into the long-haul network is mostly due to the polycentric settlement structure in Germany Population structure in Germany Long-haul rail traffic network explanation regularly scheduled line degree of centralization high single trains medium low 6
7 Deutsche Bahn pricing system consists of three price segments and offers appropriate products for all target groups Simply board the train and start the journey Flexible & cut-price travel with the BahnCard Plan ahead and save more with Sparpreis saver fares Standard fare Flexible travel at any time max. EUR 111in 2nd class max. EUR 167 in 1st class Children aged under 15 travel free of charge when accompanied by their parents/ grandparents BahnCard family BahnCard 25: 25% discount on standard and saver fares Costs: 50 EUR (2nd class) BahnCard 50: 50% discount on standard fare Costs: 200 EUR (2nd class), 100 EUR for certain age groups and holder s partner BahnCard 100: Mobility pass for any number of journeys on almost all Deutsche Bahn trains Sparpreis saver fares Sparpreis 25: 25% discount on the standard fare Sparpreis 50: 50% discount on the standard fare, weekend travel only 50% Mitfahrer-Rabatt (discount for the 2nd-5th accompanying passenger) Fixed quotas available while stocks last, passengers have to book a specific journey Return journeys only Tickets have to be purchased at least 3 days in advance 7
8 Competitive prices geared to market demand are currently only possible in ICE operations fixed fare per kilometre in the IC/EC network 2nd class fare Maximum ICE fare 1 : Standard IC fare for all routes of 400 km: Minimum ICE fare 1 : 61 ICE-Preis, 2. Kl, Preisstand 2005 ICE price, 2nd class, price level 2005 IC/EC price, IC/EC-Preis, 2nd class, 2. Kl, price Preisstand level ICE pricedurchschnittlicher average ICE-Preise for Duisburg - Hamburg via Münster; 88 for Freiburg-Cologne via Limburg Distance of single journey (in km) 8
9 Change in Demand and Effect of RM at DB AG Increase of Revenue, Cost Reduction, Reduction of Standees Customer reaktion in the case of unavailability of a tariff Effect for DB AG Exit departure 11:00h Tariff 1 Tariff 2 Tariff 3 12:00h 13:00h Time Shift Upsell Increase of Revenue Less price sensitiv demand is being moved into higher tariffs Upsell Reduction of Cost Shift of price sensitive demand to trains with lower load factor Reduction of costs for supplementary trains Optimization of standard schedule Reduction of standees Shift of price sensitive demand to trains with lower load factor Smoothing of demand and Reduction of overbooking Increase of customer satisfaction 9
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