ATOC predicts bright future for online rail sales

ATOC predicts bright future for online rail sales

Online retailers are being urged to reap the benefits of selling UK rail, as more travellers turn to the web for information and tickets.

According to the Association of Train Operating Companies (ATOC), online sales of UK rail tickets leapt by 30 per cent in the past year to nearly £700m and the figure is projected to hit the £2bn mark by 2013.

“This is a positive time for rail,” said David Mapp, ATOC Commercial Director. “The market as a whole has been growing at nearly 10 per cent a year and online sales are starting to make great strides. But the fact remains that, out of a total market worth some £5.5bn, only 12 per cent of sales currently come via the web. This is well below the levels we see for airlines, hotels or car hire, so we know there is still enormous potential to grow the online channel.”

ATOC believes that the key to developing internet sales is to encourage new players to enter the market. Prospective entrants are likely to have a significant presence and track record in online retailing, although this need not be in a rail environment. And as consumer spending comes under increasing pressure, adding rail could help retailers to maintain or increase their share of customers’ overall spend.

“Rail is an established mass-market product,” said Mapp, “and will sit easily alongside a range of consumer services, such as insurance or other travel products.”

Preliminary research among a sample of retailers has demonstrated a healthy level of interest in selling rail – but also a lack of knowledge of how the market works.

“We need to make potential partners aware of this unique opportunity and debunk some of the myths surrounding rail retailing,” explained Nick Bamford, Internet Retailing Project Manager at ATOC. “As a first step, we have produced an information pack for prospective retailers to help them to understand the market opportunity and to take a high-level view of its attractiveness and fit with their current business.”