We’re creating a more connected travel industry, underpinned by sustainability and long-term investor relations.
Trans Metropolitan, the new entrant that will soon start operating in Germany, is not the first one experimenting the challenges of passenger rail deregulation. Locomore, the world first crowd-funded railway, started its operations end-2016. Aiming to provide long-distance passenger services in Germany, it announced itself insolvent after not reaching a cost-effective balance between passengers and operational costs.
But on the other hand, in the Czech Republic, LEO Express, the privately-owned railway, has succeeded, connecting today 6 European countries. And in Italy, Italo trains (NTV), have been transforming high-speed rail travel since 2012.
For Trans Metropolitan, passenger rail deregulation is a positive thing. However, there is still a lot of work to be done before rail can be in the pole position:
“We need a further round of European market deregulation in order to increase competition. Rail is now where the airline industry was 20 years ago. We are heading in the right direction, but we are not there yet."
For Trans Metropolitan, new entrants can face many sales barriers:
Only through product differentiation can new rail entrants succeed, Sven argues.
We are looking forward to seeing their success in the European market and we wish them all the best.