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How can we create tourist products from the existing transport systems

Hugo FURRER - Management Swiss Travel System c/ o SBB Passenger Traffic Division, Bern (Switzerland)

 

Slideshow

 

Programme

1. The idea of Swiss Travel System and how it works
2. 10 Key success factors of Swiss Travel System

 

1. The idea of Swiss Travel System and how it works

• What is Swiss Travel System?
• Pooling of the Public Transportation Network
• The concept of ‚all-in-one Ticket‘
• Method of revenue sharing
• Some sales figures

What is Swiss Travel System??

1. Brand name used abroad for Swiss Public Transport Network
2. Dedicated range of travel passes/tickets for visitors from abroad: Swiss Pass, Swiss Flexi Pass, Swiss Youth Pass, Swiss Card, Swiss Transfer Ticket, Swiss Half Fare Card, Free Swiss Travel System, Family Card!

Pooling of a very varied and dense network of public transportation

Network consists of:

• 5,000 km of railway lines
• 1,000 km of mountain railway and cable cars
• 13,000 km of bus routes
• 23,000 stations of public transportation

Network operated by:

• approx. 150 railway and bus companies
• 15 boat companies
• 38 urban tranportation companies

Concept of "all-in-one Ticket"

• One ticket, the Swiss Pass, gives access to the entire network.
• Travellers benefit from unlimited use of trains, buses, boats, city transportation during the period of validity of the pass .... regardless of the carrier

Method of revenue sharing

• Co-operation instead of competition between the various operators
• Through ticketing: one integrated tariff system for all public transportation companies
• Revenue sharing among transportation companies is based on regular surveys of use of the passes by the travellers
• 150 transportation companies get a share of revenue of each pass sold.
• Example: SBB as major partner receives ‚only‘ 43.5% of the turnover of a Swiss Pass

Organisation of Swiss Travel System (STS)

• Pooling of public transportation companies for joint marketing purposes
• Swiss Travel System is NOT a registered company
• SBB has a management mandate from the public transportation companies
• Marketing Board STS with members of the 8 most important public transportation partners
• Final decision about pricing is taken by ‚Commission Voyageurs‘ where all public transportation companies are represented

History of Swiss Travel System

• Exists since 1990 under this name  and replaced previous offers with a different name
• 1990: Turnover 16 Mio. CHF
• Turnover increased steadily thanks to extension of product range and intensified marketing
  • 2000: 41.9 Mio. CHF
  • 2002: 37.8 Mio. CHF
  • 2004: 41.1 Mio. CHF
  • 2005: 43.7 Mio. CHF
  • 2006: > 50 Mio. CHF (ca. 32 Mio. EUR)

Swiss Travel System sales 2005 without Swiss Half Fare Card

• 194,000 Passes and Tickets sold:  53% Swiss Pass, 28% Swiss Card, 19% Swiss Transfer Ticket
• Turnover of 43.7 Mio. CHF
• Major markets:
  • United Kingdom: 11.7 Mio. CHF
  • North America: 6.7 Mio. CHF
  • Germany: 4.6 Mio. CHF
  • Japan: 3.4 Mio. CHF
  • India: 2.7 Mio. CHF
• 2006: January to September: +20%
  we already matched turnover of entire Year 2005

 

2.    10 Key Success Factors of Swiss Travel System

in the categories

• Product
• Distribution
• Communication

1. Attractive and flexible product range

• Swiss Pass "all-in-one Ticket": ONE ticket is valid for travel by train, bus, boat and urban transport systems.. and also for more than 400 museums in Switzerland -> world-wide unique
• The product range matches the needs of individual travellers to Switzerland, from Transfer Ticket to Swiss Pass for 1 month
• Special discounts for groups of 2 adults travelling together and for young people under 26.
• Children under 16 years travel free with their parents
• Tailor-made tickets for Tour Operators for their individual tour programs. Many tour operators include transfers by train in their package tours to Switzerland

2. A unique network of public transportation

• Very dense and efficient network of public transportation
• Seamless transportation chain from airport to cities, holiday resorts, remote villages and mountain peaks
• Half-hourly service on most intercity trains
• No seat reservation required
• Competent and multilingual staff on board the trains and in stations
• Diversity of routes and services
• Marketing efforts of individual companies with strong brands contribute to strengthen the Swiss Travel System brand (and create a healthy competition)
• Comfortable trains with various seat assignments
• Special carriages like Family Cars, Dining cars, Bistro cars, ...

3. Scenic routes

• Connect the various tourist destinations in Switzerland
• Marketed as the "highlight of any trip to Switzerland"
• Include some of the most attractive train rides world-wide: Glacier Express, Bernina Express, GoldenPass Line, Wilhelm Tell Express, etc.
• Comfortable cars with panorama windows guarantee a great viewing experience: "The journey itself is the reason for travelling"
• Variety of trips by train, bus and boat
• 28 scenic routes and excursion ideas published in the brochure and in the internet encourage customers to make an extensive use of their passes. Examples: Glacier Express, Bernina Express, GoldenPass Line, Wilhelm Tell Express, Palm Express, Mont-Blanc Express, Swiss Chocolate Train , Centovalli Railways
• Each scenic route is unique
• "Healthy competition" leads to product improvements
• All scenic routes included in the Swiss Pass, even the sectors in Italy and France !
• Often compulsory seat reservations incl. supplement required
• Often additional services included in the supplement
• Group business is also important

4. Unique solutions for baggage

• We also provide solutions for baggage transportation
• Fly Rail Baggage: From any airport world-wide to 50 train stations in Switzerland
• Check-in at the Train Station: Check-in for the flight via ZRH or GVA at 50 train stations and collect your boarding pass
• Fast Baggage: Same day baggage transportation between 45 stations in Switzerland, for individual travellers and groups

5. World wide distribution

• In Switzerland at major train stations, tourist offices and through tour operators
• SBB Contact Center (Internet and call-center)
• In Europe through national railroads (SNCF, DB, ...), through appointed travel agents and tour operators and through Switzerland Travel Centre (Internet and call-center)   
• Overseas through 2 joint-ventures with SNCF (Rail Europe Group and Rail Europe 4A) and their dense network of sales agents
• Distribution is 100% electronic with possibility of instant seat reservations 

6. Own corporate design

• Logo refers to the brand of Switzerland Tourist Board
• Used consequently for all communication since year 2000
• Pictures show travellers enjoying their trip by train, bus and boat 

7. Active multi-channel communication 

• own brochure in 13 languages and 4 formats
• own home page www.swisstravelsystem.ch (since May 2006)
• targets: Travel Trade, Media, End consumers
• Presence in on-line and print communication of Switzerland Tourism
• Presence in on-line and print communication of our distributors world-wide
• Active and passive presence at  travel fairs world-wide (trade and public)

8. Attractive range of sales tools

• Swiss Travel System Brochure
• STS CD ROM "Images from Switzerland"
• STS DVD "Mail from Switzerland"
• Public Transportation Map  "Join the Ride"
• Varied range of Give-Aways

9. Successful marketing co-operation with Switzerland Tourism

• Contract regarding world-wide marketing
• Integration in main campaigns of Switzerland Tourism as "Premium Partner"
• Integrated marketing plans for world wide markets, funded by Swiss Travel System, Switzerland Tourism and additional partners (e.g. Cisalpino, TGV Lyria, etc)
• Joint marketing plans represent a total investment of ca. 3 Mio. CHF  (1.9 Mio. €) per year
• Active Key Acccount and Key Media Management 
• Active support of Study trips with free Swiss Travel System tickets (approx. 4‘000 per year) 

Some examples...

• Media supplement in Germany from 2005
• London taxis in summer 2006

10. Continuous innovation (since 2000)

• New corporate design
• Extension of brochure formats and language versions (in order to be ready for new markets)
• Movie on DVD / picture CD ROM / new maps
• Introduction of Swiss Youth Pass
• Own homepage
• Inclusion of Swiss Museum Pass
• 50% discounts on mountain excursions

New with the Swiss Pass as of 2006

• 50% Discount on Mountain-Top Excursions
  The Swiss Pass entitles to 50% discount on mountain railways and cable cars (previously only 25%)
• Swiss Museum Pass
  Free admission to more than 400 museums, castles and exhibitions
• -> significant sales increase

 

Slideshow