No sooner said than done. On November 7, Minister of Transport Cleman Bon appealed to SNCF. work, in terms of ticket prices, on the tariff shield “. On Friday, the 100% state-owned rail operator complied and unveiled its tariff shield for 2023. It consists of no more, no less, not passing on all cost increases to passengers. ” Our ticket prices will increase by an average of 5% in 2023, and our expenses by 13%.” explains Christophe Fanichet, CEO of SNCF Voyageurs.
This pricing philosophy will only apply to Basic, TGV and Intercités tickets. For regional trains, regions will determine the price of tickets and subscriptions in turn. Furthermore, the group seeks to maintain the same policy for its international TGVs (Eurostar, Thalys, etc.) where it jointly ventures with other companies.
Even if households are likely to grimace at these price increases on January 10, they will be significantly lower than those in the airline industry.. Air ticket prices from France have increased by 18.9% over the past year. And they should increase, warned the National Federation of Aviation and its trades (Fnam), which unites French companies.
In fact, SNCF will basically formulate its price list, a 5% increase is average. Companies and individuals who are not fans of the cards and optimization system will pay more, while less well-off customers will have to save more. ” One of our goals is to protect young people and those who are most price sensitive “, – clarifies Christoph Faniche. Ouigo, which makes up SNCF’s low-cost offering and represents one in five TGVs, will keep prices unchanged. There is also no increase in the marginal fares applied at the opening of any TGV reservation. Likewise, the 4.1 million Avantage card holders will continue to pay €49 per year. And they will always benefit from price caps (€39 for a trip before 1:30am, €59 between 1:30am and 3am).
Lower profitability
On the other hand, tickets bought at the last moment, tickets for the busiest routes and business trips will be more expensive. “Maximum price networks(only available on last minute purchases, editor’s note)will increase for the first time in eight years”, shows TGV-Intercités director Alain Krakowic, without specifying the size. In addition, first class Pro Business fares or all fares offered to companies as a result of commercial negotiations will increase by 5%.
“Only a partial transfer of our ticket price costs represents an effort of several hundred million eurosemphasizes Christoph Faniche.This will reduce our profitability, but it will not put us in the red. . To mitigate the shock, SNCF will tighten ticket exchange and refund conditions from 1.eh February A week before departure, changing his ticket will cost 19 euros, while the operation is now free until D – 3. A policy that should earn him a few million.
“In general, by increasing the fare by only 5%, we bet on attracting many customers to our trains..To have, like one year, an employment rate of 80%, compared to 65% to 70% five to six years ago.– says Alain Krakowic. In mass transportation, filling is very important to amortize fixed costs and generate good profitability. So far, the appetite for the train is undeniable, despite the decline in purchasing power. Christmas ticket bookings are up just under 10% on 2019.
Source: Le Figaro
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