London, United Kingdom (PRWEB) June 16, 2012
Revenue in the Intercity Passenger Rail Transport industry is expected to total £8.92 billion in 2012-13, up 5.0% annualised over the past five years. A range of factors, including growth in passenger journeys, increased capacity and population growth, have supported revenue growth. According to IBISWorld industry analyst Caroline Finch, “costs of alternative transport have increased more than rail fares, maintaining rail's competitive advantage and leading to passengers choosing trains over cars”. In the five years through 2010-11, the total number of passenger journeys increased by an annualised 4.7%, and passenger kilometres increased by 4.6% per annum. Industry revenue is forecast to increase by 5.0% in 2012-13.
There is a renewed political focus on rail in 2012-13, with reports on the cost effectiveness of the current system, the structure of franchises and fare structures. The policy trend is toward a more complete privatisation, with the government seeking to shift rail funding from taxpayers to passengers through fare increases. In the coming two years, a number of franchises will be re-tendered, for significantly longer periods. The industry's future make-up and profit performance will be strongly influenced by the outcomes of this process. Finch adds, “the picture is clear on the demand side, as higher passenger numbers, steady population growth and a return to growth in international tourism are likely to support revenue growth”. The outlook for the industry is positive, with revenue expected to increase over the next five years to 2017-18.
The Intercity Passenger Rail Transport industry has a medium concentration in terms of revenue, with the top four companies generating about 75% of industry revenue. The top four companies - FirstGroup, Go-Ahead Group, Stagecoach Group and Keolis (UK) - all operate several rail franchises, as the average size of each railway is small. Other major companies include Virgin Trains and Arriva.
For more information on the Intercity Passenger Rail Transport industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
The Intercity Passenger Rail Transport industry operates railways for passenger travel in urban and inter-urban areas. The industry also provides some support and auxiliary services to passenger railways and transports small amounts of freight and post. The industry excludes the operation of railways primarily for the transport of freight and the operation of light rail networks.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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