Trainline has reported a surge in sales this year, attributing the increase to fewer strike days and a rise in digital ticket usage.
The travel platform also noted that competition among rail firms across Europe is intensifying. Over the six months leading up to August, Trainline generated £2bn in net ticket sales from UK consumers, marking a 15% increase from the previous year.
The company's UK revenues, which include income from ticket sales and other services such as advertising, rose by 17% to £106m year-on-year. Trainline, which aggregates coach and rail journeys from hundreds of operators globally, primarily makes money through its app.
The firm earns revenue from commission and booking fees on ticket sales, as well as from advertising and services like travel insurance. According to Trainline, e-ticketing now accounts for just over half of all ticket sales, surpassing paper tickets.
The company also benefited from a decrease in strikes between March and August down to six from 11 last year which had disrupted some train lines due to disputes over jobs and pay. The impact on UK sales was estimated at about £3m to £4m per strike day this year, compared with £5mto £6m last year. Overall, total ticket sales increased by 14% to £3bn in the first half of the year.
Competition among rail operators, particularly in Spain and Italy, has spiked, while France and Germany lagged due to travel hiccups during the Paris Olympics. Trainline is shifting its focus from commission-based revenue, which helped cushion the blow from a surge in shorter, less lucrative commuter journeys.
With half-year performance on the upswing, Trainline now foresees ticket sales and revenue at the higher end of expectations, with anticipated earnings surpassing earlier projections. Jody Ford, Trainline's chief executive, said: "Competition between rail carriers is growing across Europe and as the aggregator of choice we deliver the value and convenience customers want."
"This is most clearly demonstrated in Spain, where we have tripled net ticket sales in the last two years, with over one million customers transacting in the last 12 months alone."
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