The European Commission (EC) has announced new proposals that should enable travelers to book tickets for rail journeys that cover multiple operators on a ticketing platform of their choice.
The Passenger Package comprises three proposals: one for rail ticketing, another on multimodal booking and another on protecting passengers using single tickets.
The rail proposals will oblige railway operators with a national market share of more than 50%, which currently means only state-run rail operators, to open their online ticketing service to any requesting operator or organizer of railway services. Ticketing platforms will also be required to display offers in a neutral way, including sorting by greenhouse gas emissions where feasible.
The proposals are intended to ensure that all transport operators can enter into fair, reasonable and non-discriminatory (FRAND) commercial agreements with ticketing platforms and vice versa.
Under the wider plans, passengers who miss connections during multi-operator rail journeys will benefit from new, full passenger rights protection, including assistance, rerouting, reimbursement and compensation.
“The Passenger Package is a welcome step toward making rail easier to access and use for passengers across Europe,” Catriona Meehan, director of public affairs at multimodal travel platform Omio, told PhocusWire. “Too often, fragmented data and ticketing still make it harder than it should be to search, compare and book journeys, even where good services exist.
“As the proposal moves through the legislative process, the focus must stay firmly on outcomes for consumers. That means a genuinely open and competitive distribution market, with fair and non-discriminatory access to fares and data on FRAND terms, including fair remuneration for independent retailers. Without that, there is a real risk of entrenching nationally concentrated models that limit choice, weaken competition and slow innovation across European rail.”
Rail Europe said, “Simplifying cross-border rail journeys is an important step not only for passengers, but also for supporting the continued growth of rail travel across the continent.”
“For travelers, the real success of this regulation will be whether booking an international train journey becomes as simple and intuitive as booking a flight,” said Klaus Kreher, Rail Europe’s head of supplier management. “The easier Europe makes rail to access and understand, the more likely travelers are to choose it.”
The company said that while the proposals were welcome, the final details of the framework would be paramount.
“To fully deliver the intended benefits for passengers, it will be important to ensure fair and balanced conditions for independent distributors, particularly regarding access to content, commercial terms and the application of passenger rights obligations,” it said.
Trainline would not comment individually on the announcement but pointed PhocusWire to a statement from the Association of Digital Ticketing Platforms (ADN), of which Trainline is a part.
The statement reads, "Independent retailers have been the driving force of a Single Market for rail ticketing, unlocking seamless cross-border travel for millions of Europeans. This first draft is the beginning of a long and complex process leading to legislation, and we encourage the EU to continue to support a genuinely competitive distribution market.
“We particularly welcome the introduction of explicit FRAND terms, including remuneration and access to ticketing content. This will ensure independent retailers can compete on a level playing field. The market is already delivering choice and innovation for rail passengers. Independent ticketing platforms demonstrate that competition is working, making additional obligations on incumbents to sell competing rail services unnecessary.”
Yet some have criticized the EC for not going far enough.
The organization EU Travel Tech, which counts Booking.com, SilverRail and Expedia Group among its membership, said that the rail ticketing proposal had been a potential gamechanger, but the announcement failed to enhance multimodal travel by including other transport modes.
“The Rail Ticketing Regulation is both a genuine step forward and a missed opportunity for European travelers. Imposing FRAND obligations for dominant rail operators will unlock real competition and real choice for rail travelers and we strongly support the Commission's willingness to act,” said Emmanuel Mounier, the organization's secretary general.
“But the co-legislators must seize the opportunity to build on this solid foundation to instill a true multimodal ambition in the Regulations, applying the same logic to rail and air travel, where the market failures are well-documented and equally damaging.”
“Once adopted, independent intermediaries will, in many cases for the first time, have a workable basis to negotiate viable distribution agreements with incumbent railways and bring attractive offers to passengers,” EU Travel Tech said.
Despite this, the plans pose risks, it said.
Requiring railways to sell competitors’ tickets could “chill competition on the rail platform market through a Winner Takes All dynamic, thereby reducing consumer choice and innovation,” the organization said.
It also asserted that airlines pursue similar anti-competitive strategies and limiting the FRAND framework to rail travel will not address the “market failure hindering multimodal distribution.”
The European Travel Agents’ and Tour Operators’ Association (ECTAA) warns that the regulations could unintentionally accelerate market concentration by “reinforcing the direct distribution power of dominant operators, while weakening independent travel intermediaries that provide consumers with impartial comparison tools, transparency and access to competing services across multiple operators and transport modes.”
“We are concerned that some of the proposed measures could unintentionally create ‘super competitors,’ to the detriment of independent travel intermediaries that cannot compete with the brand recognition and customer reach of dominant transport operators,” said ECTAA’s secretary general Eric Drésin.
Raj Sachdave of travel and transport consultants Black Box Partnerships told PhocusWire that the proposals may have unintended consequences in the corporate travel sector.
“Interoperability has been a longstanding ambition across Europe. This is certainly a step forward. However there needs to be careful consideration to after service, cancellations and refunds,” he said. “Integrating origins and destinations to form one ticket may also impact the ability for discounted rates, by carrier and fares, that drive growth and support sustainability strategies.
“Overall, the policy is great, but let’s not forget many B2B online booking tools have been connecting fares for some time now. They are not producing a single ticket but the heavy lifting is there across B2B.”
The three proposals in the package will now be put forward for consideration by the Council for the European Union and the European Parliament.