North Star releases its 2018 Global Air-Rail Market Share Report

Posted on in Members' News

NS Market Share 2018

Leading passenger transport and operations consultancy North Star, has released its sixth annual Global Air-Rail Market Share Report. The report evaluates a sample of worldwide Market Share trends of rail connections to airports.

North Star assessed a combined 50 million air-rail passenger journeys, which occurred during 2017, from a sample of air-rail operators in Australia, South Africa, Malaysia, China, the United Kingdom, France, Austria, Russia and other locations.

Market share is calculated as the percentage of airport passengers that use each rail service to travel to and/or from the airport and the city centre. Passenger numbers used, exclude airport transit passengers and staff. The market share index sums the collective change in market share on the year-by-year basis, adding it to a baseline figure of 100.

Whilst acknowledging the vast worldwide patronage that continues to use air-rail connections, North Star’s Managing Director Richard Brown recognised the ongoing headwinds facing the industry. Mr Brown reported that for the second consecutive year, North Star’s analysed Market Share index reduced.

“The industry continues to experience increased competition from ride share and car-hailing competitors”, reported Mr Brown. “Like many established industries, Air-Rail has been confronted with disruption. On the other hand, our sample operators reported that ongoing road congestion to and from airports remains a compelling reason why passengers choose rail as their preferred transport mode.”

Reflecting on North Star’s sixth report, Mr Brown observed the findings on marketing and fare promotions.

“The long-term data indicates the persuasive evidence that investment in marketing supports Market Share growth”, he said. “And interestingly, a number of our operators have been successful in moving the Market Share dial via fare discounts and promotions. We are seeing a range of exciting approaches to marketing and fare pricing from many of our sample operators”.

Sydney Airport Link’s Chief Executive Tim Anderson, who oversees 9 million annual air-rail passenger journeys to Australia’s gateway airport commended on North Star’s report. “It’s very enlightening to read the study and understand what is occurring around the globe. Geographically we are very diverse, but there are many similar challenges and opportunities that we all confront. This report gives us a common bond and communication avenue to expand our businesses.”

From South Africa, Gautrain’s Senior Executive Manager of Communications and Marketing Dr Barbara Jensen echoed a similar response: “It is not only valuable to have an insight into global trends, but it is also valuable to see how Gautrain rates amongst other air rail providers. In addition, the report provides a scientifically sound yet practical review on air rail market share. Definitely a valuable initiative to partner with.”

KLIA Ekspres’ Chief Executive Noormah Mohd Noor added, “The challenges facing us in Kuala Lumpur are similar to those faced by air-rail operators worldwide. However, the initiatives and creative solutions by each operator is different. We strongly believe that we can help one another. The Market Intelligence Report allows this sharing of knowledge, which is what we like and see as the biggest benefit of participating in this report”.

The participants will discuss the report in more detail in London at the Global AirRail London Conference taking place on 27-29 November 2018.

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