SJ - revitalising the night train business

Revitalising European night trains and EC-IC services Greens/EFA event July 1 2015

2

3

Todays focus

!  Sweden has a population of 9.8 million and a geography with a distance of 1 600 km from Treriksröset up north to Smygehuk down south

!  The rail market is deregulated and SJ is the leading provider of passenger traffic

!  We run three night train lines with very different market conditions

!  Todays focus is on the night train between Stockholm and Malmö

Stockholm  

Malmö  

Göteborg  

Riksgränsen  

Sundsvall  

4

The Stockholm-Malmö night train

•  One train in each direction 6 days a week

•  Departs at 10:00 pm and arrives approximately 06:30 am

•  Four product offerings - 1st class sleeping car, 2nd class sleeping car, Couchette and Seat

•  Punctuality 95%

•  Business and leisure travellers

•  Competes with air travel as well as long distance busses Malmö  

Stockholm  

5

Customer offering

“Spend time with your family, have dinner at home and be sure to be well in time for an early morning meeting in Stockholm or Malmö”

“Save time and money traveling over night in the most comfortable way, having a full day away from home without having to stay at a hotel”

6

Customer offering – the environmental choice

7

Passenger trends

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

d f a j a o d f a j a o d f a j a o d f a j a o d f a j a o d f a j a o d

Passengers per month, 12 month rolling average

2010

2011

2012

2013

2014

2015

Forecast

8

Passenger trends

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Passengers January-May

2010 2011 2012 2013 2014 2015

9

Passenger development by class

5,000  

10,000  

15,000  

20,000  

25,000  

30,000  

35,000  

40,000  

45,000  

2013   2014   2015  

Sleeping  car,  1st  Class   Sleeping  car,  2nd  Class   CoucheCe   Seat  

50% increase vs 2013

50% increase vs 2013 and tripled vs 2014

10

This is what we did •  Market assessment indicated significant potential

•  Hypothesis to drive volume and profitability by reducing prices 30-50% ... while using dynamic pricing

•  Marketing, marketing, marketing

•  Top level meetings with key opinion drivers

•  Close cooperation with regional organisations

•  Direct contacts with press and press releases

•  Focused B-to-B sales

•  Direct marketing to members of our loyalty program SJ Prio

12

Swedish trains have an outstanding environmental performance

13

Passenger development Number of passengers per week, 2015

 -­‐                200            400            600            800          

 1,000            1,200            1,400            1,600            1,800            2,000            2,200            2,400            2,600            2,800            3,000          

Week  1   Week  2   Week  3   Week  4   Week  5   Week  6   Week  7   Week  8   Week  9   Week  10   Week  11   Week  12   Week  13   Week  14   Week  15   Week  16   Week  17   Week  18   Week  19   Week  20   Week  21   Week  22   Week  23   Week  24   Week  25