Longstanding Success
In 2004, Via Rail celebrated the centenary of the Ocean, the longest-running named train service in North America. Over its hundred years of operation, the service has seen many changes in equipment, services and marketing as it has positioned itself to meet the needs of Maritime residents and visitors. This train has been a longstanding success story, offering a lifeline to isolated communities while also linking Halifax and Moncton with Quebec City, Montreal and points west. It has responded to the changing needs of its users, retaining its relevance in the face of strong competition from airlines, bus services and the automobile.
Current Situation
In the last few years, ridership has remained strong during the summer and Christmas travel seasons, but outside these periods it has felt the effect of deep-discount airfares and improved highways. With discount airlines, luxury cars, large motorcoaches and expanding freeways, is there a future for long-distance passenger rail in Atlantic Canada?
Experience Travel
In North America, long-distance train travel is an experience which can combine transportation needs with other personal objectives such as respite from stress, opportunities to socialize, enroute activities and scenic enjoyment. These more qualitative benefits are of strategic importance in attracting discretionary users who are willing to pay a premium which can help offset operating expenses. This market is often equated with international tourists and visitors. In fact, however, these discretionary users also include domestic travelers who could otherwise fly or drive.
What is commonly overlooked, is that time spent on a full-service long-distance train is also available for other purposes, including overnight sleep, meals, work, meetings, socializing or simply the enjoyment of scenery. Overnight train travel serves a transportation function, but also offers a total experience, especially for those who are able to afford a bedroom. These passengers do not just travel on the train, they live on the train. Whether for tourists or traveling Canadians, this is a vital market distinction from other land transport modes.
For this reason, whenever a popular on-board amenity is removed from a long-distance train, an important reason for choosing to use it is lost, and its overall market potential is eroded. While amenities like dining and observation cars are costly to provide outside the tourist season, they are critical in differentiating the rail product from any other mode. They are strategically important to the year-round passenger rail market because they also attract domestic travellers willing to pay a premium for a unique experience.
Overnight Markets
Limitations in speed, price and frequency outside Via’s Windsor-Quebec City corridor are less important for overnight trips such as between northern New Brunswick and Montreal. There are three reasons for this:
Time effectiveness is more important than trip duration.
Airfares reflect the size of a centre rather than distance between centres.
Trip fares are not the same as trip costs.
Hotel costs can be avoided by using overnight train service. For example, flights from Moncton to Montreal and eastern Ontario are typically more expensive than comparable flights from Halifax, whereas the rail (and bus) fare is the opposite due to the shorter distance. Overnight sleeping car travel can be a more effective use of personal time than a nominally short air trip on an inconvenient schedule.
The above opportunities suggest a small but significant business travel market for rail between small to mid-sized centres separated by an overnight trip. In the case of the Ocean, this would apply to markets in northeastern New Brunswick and possibly Moncton.
Regional Markets
Unlike express bus or air services, transcontinental trains are able to serve small communities enroute without detouring from a highway or landing and taking off. They also have potential for superior winter reliability and safety during adverse weather. This basic transportation and "back-up" function is another argument for continued public operational support for Via Rail services.
Specialized Markets
Beyond an overnight trip duration, passenger rail can compete on the basis of advantages related to the nature of rail vehicles:
Rail vehicles offer more space for persons with disabilities, with less need for advance notification.
Rail vehicles can accommodate baggage and specialized equipment, such as bicycles, skis and pets (if adequate heating and air conditioning are provided). Via remote services already support this market through the transportation of camping gear and canoes using conventional baggage cars. The growth of ecotourism suggests that this market has potential on Via Rail services to the Maritimes, though the relatively small doorways to the Renaissance baggage cars currently pose a challenge. Wheelchair access is an important argument for continued federal operating support for Via Rail services, which also offer more space for people with other mobility deficiencies.
Maximizing the Markets
While tourism is an important component of Via's market and makes a vital contribution to operating revenues, it is not the only component. One must not lose sight of a transportation service relevant and useful to the needs of Canadians from coast to coast. At the same time, if the basic transportation market is overlooked in favour of a luxury-only product, questions may arise as to why such an enterprise should be supported by Canadian tax dollars. Therefore it is critical that Via Rail consider both ends of its market: basic transportation and experience-oriented travel. Moreover, the "experience travel" market is not limited to tourism; it includes Canadians who choose to turn their travel needs into an opportunity for relaxation and enjoyment.
Suggestions by Transport Action Atlantic
Based on the foregoing, Transport Action Atlantic has some suggestions which they believe will further help position the Ocean train service to serve the modern Canadian passenger rail market. Given the current financial constraints, these ideas focus on opportunities using available equipment and existing services.
Experience travel:
Offer an observation or dome car outside the tourist season.Promote the Ocean train service to the Halifax Port Authority as an asset toward establishing Halifax as a cruise ship port of origin. As a highlight of train travel, an observation or dome car is important in attracting a year-round discretionary transportation market. This could be accomplished by retaining the Park Car throughout the year and charging a fare supplement for its use. Using this existing equipment would avoid the cost of modifying Renaissance shells to create new observation cars.
Join the Halifax Gateway Council. This is a coordinative body representing port users, airlines and railway companies. Via should be a part of this strategic intiative. The opportunity to begin or end a marine cruise with a train trip is a strategic marketing advantage for Halifax, particularly as the station is adjacent to the cruise ship terminal.
Overnight market:
Partner with local Chambers of Commerce and Business Improvement Districts in northern New Brunswick to promote overnight business train travel
based on effective use of time, savings on hotel costs and convenient morning arrival in downtown Montreal. These agencies typically have websites and newsletters for their members, and could carry Via promotion at relatively low cost.
Regional market:
Expand the range of sleeping accommodation to attract more singles and families as funding permits, for example by converting the standing-room alcoves in the Renaissance lounge/service cars. Via has already taken a commendable step in making the double and triple bedrooms in the Park car available for families.
Advertise the ViaPac parcels service in the Maritimes. The Ocean offers overnight delivery six nights per week, but few people are aware of this parcels service, which could do more to supplement revenue.
Partner with ski operators, universities and tourist accommodations to develop the local market between Halifax and Moncton. Opportunities include overnight ski trips to Wentworth (opposite the rail line), relocating the Springhill Junction flag stop to Exit 5 of the Trans-Canada Highway (for improved visibility and easy access to Springhill and Oxford); and a "Truro Turnaround" promotion encouraging Halifax families to sample train travel on a same-day-return excursion to Truro (Acadian Lines scheduled buses provide a fallback if either train is delayed).
Inaugurate a Community Rail Partnership. Formalized cooperation between municipalities, train operators and residents can help support stations, promote services and reduce costs through opportunities for volunteerism and local investment. This movement has done much to augment ridership on British rural railways, and is represented in the U.K. by the Association of Community Rail Partnerships (see http://www.acorp.uk.com/ ). Such partnerships act as a bridge between local communities and the railway industry, through such activities as local advertising, station adoption, promotional events, volunteer tour guides, intermodal coordination, synergy with downtown and heritage revitalization, on-train events and involvement of local railway staff.Via has recently developed a framework for constructive dialogue with users of its Gaspe overnight train; a similar program should be implemented for users of the Ocean train service.
Specialized markets:
Promote the Ocean as a means to reach the Trans-Canada Trail and other regional trail systems. This would emphasize Via’s national significance, celebrate the longstanding association between rails and trails, and complement Via’s recent "Garden Route" promotion. The cross-country ski and snowmobile market would encourage off-peak ridership. Amtrak has already developed several trail/train partnerships with the U.S. National Parks Service.
Carry specialized items in return for a supplementary charge. Items such as skis, bicycles or even pets could be accommodated in a baggage car or transition car if appropriately adapted. Any disincentive of boxing bicycles, turning the handlebars and removing the pedals could be avoided if bicycle racks were added onto the ends of the luggage carts which are used for loading and unloading baggage cars. The ability to travel with large or specialized items is a small but potentially significant market opportunity for passenger rail, would be compatible with Via’s emphasis on ecotourism, and in the case of skis, would build winter travel.
Consider the market for ATV, snowmobile and motorcycle users. While this would require a conventional baggage car ahead of the Renaissance equipment, it would open up a market advantage relative to other modes. This market often attracts large groups of travelers willing to pay a surcharge for carrying their equipment, compounding the revenue potential. Snowmobiling offers an off-season market possibility, especially from Halifax where winters are not predictable, to northern New Brunswick or Quebec.
Market Positioning
Transport Action Atlantic believes the above measures would help establish Via Rail’s Maritime product at both ends of the market for rail travel, on a year-round basis, and for both tourists and Canadians. The Ocean has adapted to many challenges in the past century as markets and technologies have changed. With the creative thinking, energy and initiative that have come to characterize Via Rail, we believe that this important train can continue to serve the needs of visitors and residents for years to come.
Marcus Garnet, LPP, MCIP
President, Transport Action Atlantic
Posted
06-01-2010 3:16 PM
by
garnetm