Case Study On Eurail

Group GIE : Marketing

Rail Travel In Europe
SubmlLLed by SubmlLLed by
Ayushl MlLLal Ayushl MlLLal
Plmanshu manchanda
Sandeep gulerla
SwaLl Mldha
?ashashvl Slngh
There are no such thing as service industries.
There are only industries whose service
components are greater or less than those oI
other industries. Everybody is in service.
-Theodore Levitt
JhaL ls servlce?
W service is economic activity that creates value and provides
beneIits Ior customers at speciIic times and place.
W It is a part oI the product or Iull product Ior which the
customer is willing to see value and pay Ior it.
W It does not result in ownership.
W It may or may not be attached with a physical product.
MosL roducLs Pave Servlce
ComponenL
It could be:
Equipment based
People based
CharacLerlsLlcs Cf Servlces
W Intangibility
W Perishability
W Variability
W Inseparability
W Hetrogenity
@ype of servlces
W epending upon the need oI customer services can vary.
W It could be
Personal services- massage parlour, beauty parlour and
grooming centres, etc.
Business services- courier services, etc.
ProIessional services
Health services
ConL
International services
Youth services
Elderly services
Community services
irectory services
Ecosystem services
nxillary services
Servlce MarkeLlng rocess

- Crganlslng MarkeLlng lannlng

- Analyslng MarkeLlng CppurLunlLles

- SelecLlon of LargeL MarkeL

- ueveloplng MarkeLlng Mlx

- Managlng MarkeLlng LfforL

LlemenLs of Servlces MarkeLlng
Mlx
W Product
W Place
W Promotion
W Price
W People
W Process
W Physical Evidence
ulfference 8eLween Coods and
Servlces
W Tangibility
W Quality
W Transportability
W Legal and ethical barrier
W Perishability
W Consumption
W Unpredictibility oI emand
W Marketing Mix
W Creating Value
Managlng Servlce CuallLy
W Gap between management perception and consumer
expectation
W Gap between management perception and service quality
speciIication
W Gap between service quality speciIication and service
delivery
W Gap between service delivery and external communication
W Gap between expected service and perceived service
acLors ulfferenLlaLlng Servlces
W OIIering
W Image
W elivery
W Responsiveness
W Concern
W Reliability
elaLed Lo Case
Customers (Travelers): The customers are the reasons that the
travel company exists and Ior whom the company has designed
the traveling and touring package as well as set up the
inIrastructural Iacilities and spent money on employee
development programmes. Here the providers are the only ones
who interact with the customers, like the travel agents interact
with the customers and not the company. The agents perIorm
interactive marketing which is on-time, all-time, every-time. This
is the most crucial aspect oI service marketing in the travel and
tourism sector. Those agents have the responsibility oI keeping
promises` made and enabled by the company. The providers
(agents) are responsible Ior the perceived quality level oI the
service transaction. This underlines the uniqueness oI service
marketing.
ConLenLs
W Introduction
W Background
W Eurail Story
W The Eurail Experience
W Eurail Passes
W Pricing
W istribution
W Eurail Pass
W Promoting The Eurail
W Challenges
W Track head
W Questions
nLroducLlon
Railways were introduced in Europe in the 19
th
Century.
In 1959, 13 European countries came together & Iormed an
association called Eurail Community
The purpose oI which was to encourage tourism .
Eurail was Iamous Ior its uniqueness and convenience.
8ackground
W In late 1950`s the beginning oI competition Irom airlines led
to cost cutting and encourage rail travel.
W In 1959 ,a loose association oI National Railway companies
Irom 13 countries in Europe came into existence to cater to
the increasing number oI tourists Irom North merica ,
especially US.
W Eurail Pass Connected several rail systems oI Europe.
W It was not available to the residents oI Europe.
W In 1972, the Inter Rail pass was introduced Ior residents oI
Europe and North Irica.
ConL
W In 1960`s rail passengers generally comprise oI young
mericans, keen on visiting Europe.
W In 1970`s a Youth version oI Eurail Pass was introduced as
young graduates comprised larger proportion oI rail travelers.
W Introduction oI Eurail Youth Pass Ior passengers aged 26
years 'Backpackers`.
W In late 1970`s and Early 1980`s a slight drop in number oI
merican tourists because oI rise in US employment rate.
ConL
W In Early 1990`s low tourist arrivals to Europe because oI
political instability in Eastern Europe.
W In mid to late 1990`s revival oI travel to Europe-
'Backpacking` again gained popularity. merican students
visited on Exchange program which connected Iar Ilung
villages.
W In 2001,Eurail community became a 'Company` , legal
entity registered in Luxembourg and Head OIIice in Utrecht
, The Netherlands.
W More than 400,000 people used Eurail passes which
generated revenue oI approximately US$ 169 million.
@he Lurall Lxperlence
< Stretched over 1,74,000 miles.
< Connects bout 26 countries.
< Sleek ,neat and eIIicient trains.
< Eurail passes- valid on high speed European trains besides the local
trains.
< Scenic trains.
< Several railway stations were in themselves architectural showpieces
< OIIer unique cultural experience.
< Trains made use oI Ierry crossings
CONT.
W Superior dining Iacilities
( snack carts, buIIer cars)
W Range oI sleeping
accommodations such as
SLEEPERS,
COUCHETTES N
SLEEPERETTES.
W Fees based on train line and
category
W Special arrangements Ior
disabled people.
W Space and comIort on
board the trains...
Lurall asses CaLerlng Lo ulverse
needs
W Introduction oI new passes based on changing travelling
habits oI tourists.
W Select pass ( 2001).
W Eurail regional pass (2004).
W National passes(2006) Ior nine participating countries
(Finland, Greece, Holland, Hungary,Norway,Poland, Romania,
Spain and Sweden).
rlclng
Cheap passes
Eurail pass security
iscount to large groups
Bonus Iacility
Reservation charges US$4 and US$11
Surcharge was levied on high speed trains
Eurail passes were also levied on some Ierries
ulsLrlbuLlon
W Sold through Travel gents and
S
W In 2004 it introduced Online
purchasing Iacility
W vailable through Europe at Eurail
aid OIIices
Lurall ass
romoLlng @he Lurall
W dvertised through authorized sales agencies.
W dvertised as ' All of Europe is at your fingertips when
youre a Eurailpass ticket holder.
W Rides were stylish ,comIortable, spacious (Take a walk) and
eIIicient.
W Train meant avoiding the check-in queues and long waits and
this allows time Ior sightseeing.
W It passed through every corner oI Europe including Iorest,
Iields, and mountains.
W Relative SaIety oI rail travel in comparison to road travel.
ConL
W Several books were written which helped to promote
rail travel some oI these were Eurail Guide , The
Eurail by Eurail series.
W Promotion oI its product oIIering early bird
promotions prizes and prizes Ior special Iestivals.
W The period saw large number oI tourist arriving in
Europe which resulted in 24 increase in Eurail
passengers numbers in 2005.
W Eurail Selectpass ,allowed unlimited rail travel in
3,4or 5 country combinations, most popular rail pass
in 2005.
Challenges for Lurall
W It was believed that Eurail Passes were a better option only
on railway lines in Western Europe.
W Railway network in Eastern Europe had the Iollowing
disadvantages:-
Old, hence unsaIe.
Trains were unpunctual.
OIIered bumpy rides
ConL
Without air conditions.
Travel without reservations was uncomIortable.
High reservation charges.
Food available on trains was expensive.
ConL
Eurail competed with low-cost airlines on some oI its busy
routes which oIIered services at a lower cost.
Threat Irom terrorist attacks which saw a drastic Iall in tourist
arrivals.
Pow @o Serve 8eLLer?
W Extending the railway network in Eastern Europe
W Being punctual / Iollowing strict timing schedule
W voiding Bumpy rides, better air conditioning Iacilities.
W Planning Iixed, scheduled itineraries, avoiding last minute
changes
ConL.
Provision oI subsidized reservation charges, reducing cost oI
Iood
Increasing security and making travelling saIe
By oIIering concessions to senior citizens
Making railway system accessible Ior residents oI Europe
By increasing Irequency oI trains.
AchlvemenLs
W On may 22, 2006, Eurail reported a 9 growth in sales Ior
the Iirst quarter oI 2006 over the corresponding quarter oI the
previous year.
W Strong growth in tourist arrivals Irom ustralia and Korea.
W World Cup Football tournament hosted in Germany in 2006,
attracted over 10 million Iootball Ians several oI whom used
Eurail passes.
W With new products and promotions Irom 2006 Eurail is
looking Iorward to greater success.
Questions ?
W How does promoting travel on a railway network that spans
several countries diIIer Irom promoting a product ?
W oes the Iact that Eurail passes are targeted at tourists aIIect
the approcah to the market? What could be the objectives oI
Eurail`s Marketing eIIorts ?
W What are the challenges Iacing the Eurail? In the light oI the
Ialling cost oI air travel in Europe with the advent and growth
oI low airlines and the impact oI increasing Iuel prices on the
cost oI travel by road, does Eurail need to Rethink its target
markets and its marketing pproach?