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Virgin West Coast attack Chiltern Railways

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Chafford1

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Article in Transport Xtra:

http://www.transportxtra.com/magazines/transit/news/?id=15474

Here's the full article:

'Aggressive Virgin advertisements target ‘Chiltern Snailways’ over
journey times.


Virgin’s advertising campaign is regarded as one of the most
aggressive ever mounted against a fellow TOC.

Virgin Trains has placed a series of large posters denigrating
Chiltern Railways’s service right outside a number of its key stations
including Moor Street in Birmingham and Leamington Spa.

The posters include one headlined Chiltern Snailways in reference to
the company’s London-Birmingham journey time. Chiltern’s quickest
journey on the route is 2hrs 10mins which is 50 minutes slower than
Virgin’s 1hr 20mins.

Another poster includes the statement ‘Time is money, Chiltern
Railways haven’t quite grasped this’.

Chiltern said it had interpreted the advertising as a sign that Virgin
is concerned by the competition it provides on the London-Birmingham
route. Cheaper fares, considerably better punctuality than Virgin and
consistent marketing have enabled Chiltern to build up a 30% market
share of the London-Birmingham rail market from a very low base.

Virgin’s tactics are regarded in the industry as one of the most
aggressive campaigns ever mounted against a fellow TOC. They follow
advertising from Chiltern pointing out the price difference between
the two companies’ fares and come at a time when the difference
between their punctuality is at record levels.

“We have been advertising that we are £50 cheaper than them in the
peak and this is their response,” Kirsteen Robertson, Chiltern’s head
of marketing, told Transit. “We haven’t complained though. There is a
recession on and we are all after passengers. When I have seen Virgin
at ATOC meetings it has all been very good humoured.”

She added that Chiltern’s success in building market share had been
down to its superior punctuality as well as price. In March, the
company achieved the record performance by any train operator in a
four week period.

“We have just achieved 97.51% in period 13 and we think they are on
course for 97%,” Robertson said. “We don’t have their linespeed, but
we do get people there when we say we will.”

The previous record for punctuality in a four-week period was 97.3%
achieved by c2c two years ago.' <(
 
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Metroland

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Even more strange is when you see adverts by coach companies against rail companies and it's the trains are run by, well, the same company!

What do you expect, they are in competition?

I wonder if we'll have the great races to the north again between Virgin and NXEC! :)

The airlines all hate each other, BA v Virgin, Ryan air v Easy jet and so on. Competition between the rail companies is quite gentlemanly.
 
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paul1609

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I've been a confirmed Chiltern user on London-West Midland trips for a couple of years, however Im surprised they now have 30% of the market share thats a very impressive figure considering their constraints no wonder Virgin are worried!
 

Mojo

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I saw this poster appear at Moor St a few weeks ago and have been meaning to photograph it.

For some time Chiltern have been running an ad campaign with phrases like "London for up to £50 cheaper than Virgin. Your profit. Their loss."

Anyway - seems odd in times of recession - I always thought you won on price in times like these, and advertising that you charge more than your rivals doesn't seem like a good way of winning business.

If you look at the attached picture taken from my kitchen you can see the blue poster right above Moor Street station - this is a Chiltern poster and is where the Virgin poster is now.
 

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ukrob

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I've been a confirmed Chiltern user on London-West Midland trips for a couple of years, however Im surprised they now have 30% of the market share thats a very impressive figure considering their constraints no wonder Virgin are worried!

I don't think it has anything to do with Virgin being worried. More to do with the fact they now have more capacity (3tph against 2tph pre VHF) and are now looking to fill it.
 

Chafford1

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Virgin will certainly be worried about Chiltern's proposed 1h 40min timings between London and Moor Street from 2011.
 

Metroland

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Competition and liberalisation are 'normally' considered a good things. From 2010 the entire European intercity rail network gets liberalised, so anyone can run trains. A few companies are already looking at going into competition with Eurostar.

Stagecoach have started a new low cost coach service with taps into the NXEC, GC, and Hull trains market, buses people down to East Midlands Parkway and trains them to St Pancras.
 

paul1609

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I don't think it has anything to do with Virgin being worried. More to do with the fact they now have more capacity (3tph against 2tph pre VHF) and are now looking to fill it.

I disagree I think that 30% is an astonishing share for Chiltern since the route didnt have any through trains even in NSE days.
 

ukrob

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I disagree I think that 30% is an astonishing share for Chiltern since the route didnt have any through trains even in NSE days.

I think it is astonishing too. I would like to see the figure coming from somewhere independant before I take it as gospel though.
 

The Planner

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Virgin will certainly be worried about Chiltern's proposed 1h 40min timings between London and Moor Street from 2011.

Thats going to need some serious infrastructure work to get that. It wont be 2011 for sure. They need the 75mph off at Fenny Compton first, which at last look is only good for 90mph, then Aynho flyover and then everything else up to 100mph. The embankments between Risborough and Bicester are iffy (freights have 30mph limits throughout that section when diverted). Im not saying they wont do it, but 2011 seems to be pushing it.
 

paul1609

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If we are talking a headline time here Chiltern have 2 down trains Birmingham (moor st.) to london with sub 2 hour timings. The limiting factor appears to be Route capacity south of princes risborough. If you could requadruple the rusilip area and provide an overtaking facility in the Wycombe/ Beaconsfield area a line speed increase would be worthwhile.
I reckon an awful lot of the route could go to SP 90 and 100 with very little work. I reckon you'd be looking at saving of around 12 to 15 mins without touching north of princes risborough.
 

Ascot

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In Birmingham Chiltern have pretty much all the student/younger market on day trips to London. Even most of the mid-older generation use Chiltern purely because it's alot cheaper and they do family travelcard deals.
 

Mojo

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For the Birmingham to London market I am surprised LM don't do a lot more promotion of their Super Off-peak ticket. For £9.90 with a Railcard I think that's great value for a ~115 mile journey especially for a walk up fare! It's cheaper than Chiltern, plus they don't have weekend restrictions!

The only advertising from LM is their "from £5 single" Advance fare.
 

Railjet

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For the Birmingham to London market I am surprised LM don't do a lot more promotion of their Super Off-peak ticket. For £9.90 with a Railcard I think that's great value for a ~115 mile journey especially for a walk up fare! It's cheaper than Chiltern, plus they don't have weekend restrictions!

The only advertising from LM is their "from £5 single" Advance fare.

I wondered about this - I only found out about the fare when it was offered to me at a local station instead of the Chiltern Railways fare. I noticed at New Street that the Birmingham - London LM trains were only shown on departure indicators as going as far as Northampton.

Maybe there are restrictions as to what they can advertise, given that Virgin has the BHM-Euston franchise.
 

87015

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I wondered about this - I only found out about the fare when it was offered to me at a local station instead of the Chiltern Railways fare. I noticed at New Street that the Birmingham - London LM trains were only shown on departure indicators as going as far as Northampton.

Maybe there are restrictions as to what they can advertise, given that Virgin has the BHM-Euston franchise.

Silverlink as was had a huge market share. This was destroyed when the service was "encouraged" to be split, most of which deferred to Chiltern as it improved whilst the via Northampton services were destroyed with minus three / plus 58 minute "connections" etc.

London Midland are not capable of operating the advertised service between Euston and New Street most of the time, let alone anything more complicated like having a workable fares system and then advertising it! Given the ticket office and on-train staff haven't a clue about the six million LM ticket types how is your average leisure customer supposed to??
 

Mojo

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I noticed at New Street that the Birmingham - London LM trains were only shown on departure indicators as going as far as Northampton.
When they run, they are definately shown as Euston trains. This is the xx53 trains during the week.


It may have been the case that the service is timetabled to be split services, but in reality actually carries on.
 
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