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Now available in all lines of work, low-cost businesses have become milestones for consumers, that allow them to optimize their purchasing power. Low-cost companies benefit from the present economic crisis, and what better example than the airline business. Whereas Easyjet and Ryanair both brag about load factors reaching over 85%, their traditional competitors notice a decrease in the number of passengers carried.
Year 2011, low-cost airlines weighed 38% of all European inland traffic, and this share should reach 45% to 53% by 2020. This ongoing trend, first ignored by the historical companies, forced them to quickly found small price companies of their own (German Wings by Lufthansa, Transavia by AF), which barely manage to compete with low-cost companies that have been there for years.
E-commerce has progressed in such a way that it changed people’s buying habits. Using Price comparison websites has become a common practice, and in doing so, consumers are now able to easily compare offers and find the smart buy.
Also, carpool and all kinds of community sharing are creating a new practices and start competing with the Rail.
SNCF chose to be the first to react to this phenomenon, and launched a new concept of HS travel, in response to this new breed of consumers. Tu peux aussi dire “type” au lieu de “breed”, mais “breed” signifie clairement une mutation des consommateurs.
The SNCF challenge lays in creating the first low-cost high speed service, and succeed in making it the milestone of cheap travel in France.
(A380 : 525-850 pax)