Eurail Group GIE: Marketing Rail Travel in Europe
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Case Details:
Case Code : MKTG158
Case Length : 14 Pages
Period : 2001-2006
Pub Date : 2007
Teaching Note :Not Available
Organization : Eurail Group GIE
Industry : Travel and Tourism
Countries : Worldwide
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"I like the utter freedom of a full 15 or 21-day
Eurailpass. I can travel anywhere, any time -- and I can be as adventurous as I
wish." 1
- Clive Shearer, a passenger on Eurail.
"Europe's fast, efficient and comfortable rail network is
a great eye-opener to American travelers whose usual transportation is by car or
plane."2
- Rachel Young, Eurail Marketing Manager, in 2005.
Introduction
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In May 2006, the Eurail Group G.I.E3 (Eurail),
an incorporated association of 37 European railway and shipping companies,
reported a sales growth of 9% in the first quarter of 2006. Earlier in January
2006, it had reported a 24% growth in passenger traffic for the year 2005. The
healthy growth levels, coming as they did in a period fraught with natural
disasters, increased levels of terrorism, and dramatic exchange rate
fluctuations, seemed to affirm the popularity of Eurail's travel passes, called
Eurail Passes.
In 1959, individual railway companies of 13 European countries came together
with the intention of encouraging tourism and expanding their market.
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This association was called the Eurail Community. They introduced the
Eurailpass exclusively for North American tourists, allowing them to travel
as they pleased in any of the 13 rail systems for a period of two months.
Later, the pass facility was extended to people from other countries
(barring residents of Europe, the Russian Federation, Turkey, Morocco,
Algeria, and Tunisia.).
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In order to better market the Eurail brand, the
Eurail Community, which by then had grown to include 17 companies, was
replaced by an incorporated company in 2001. Rail travel using the
Eurail travel pass was promoted as a better option for traveling in
Europe, compared to other modes of travel such as road and air. The
company also introduced a wide range of passes in order to cater to
every kind of travel budget and itinerary. Eurail distributed its passes
through authorized sales agents and expanded their availability
throughout the world. Over the years, in spite of competition from other
modes of travel, Eurail was able to hold its own mainly because of its
convenience and the uniqueness of the experience it provided to the
travelers. |
Eurail Group GIE: Marketing Rail Travel in Europe
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