Interrail Pass Integrated Marketing Communication Plan Essay

The main difference between the EuRail and the InterRail is simply based on the passenger’s country of residency. The EuRail is available to residents of a non-European country and the InterRail is available for European residents only. You can be eligible for the InterRail if you have been a resident in a European country for at least 6 months. EuRail and InterRail Passes are widely known as the best rail passes in Europe, having the ability of flexibility by its large range of options. The main audience in the market for the InterRail are a highly 74% youth, having the highest sales in UK, Germany, Switzerland, Spain and Sweden. The InterRail Global Pass, valid for travel in 30 European countries, is still and remains for the 5 year the most popular option among the audience of youth travellers under 26 years old. But within the Global pass, there is dominance for the flexible travel. Due that is in high demand, it is clearly visible that the 10 travel days within 22 days is the most popular product for travellers not wishing to travel everyday of their vacations. One Country pass are Italy and Germany that combined form 62% of the market share. EuRail Group reports an audience of over 248,000 Europeans explored Europe by train. The biggest strength that InterRail has it that is a unique selling product in within the travel market. There is no other kind of pass similar to the InterRail, giving a huge advantage on the market place. Their only competition in a certain way will be the airlines, giving in some cases cheaper tickets or having a faster route. Other mayor strength is they have gathered all of the companies their users are more likely to need in their travels, and create a partnership between them, giving the user benefits and promotions in their services and products. A weakness for the product is that the trains can be highly confusing for the people that have never before use them, making that niche of the audience prefer that actual airplanes. Also there is an speculation in the internet about, the difficulties there are when booking a train with the pass. The Opportunities in within this product will always be to get as much destinations as possible. In within the travel market, the best agency will take you every place you want to go. Creating for InterRail, only a matter of agreements and routes to increase the diversification in the audience and options for the users. A Threat that I found on the market was the airplane because they can travel over seas, giving the advantage in some determined routes takes less time to arrive to the destination rather than the trains, making them look slower and therefore not functional. The Main objectives of the InterRail are to create, manage and target the increasingly comprehensive InterRail passes. Working to generate widespread awareness of the benefits of rail travel for the traveller. One of the Marketing Communication Strategies the product will be using is to emphasis on the brand differentiation with the airplanes. Letting know our audience and market, the benefits of using a train and with that, the InterRail. In here, the plan is to include us and other companies in a generic campaign, fighting for the environment. This would help the market to know, that using a train is more environmental friendly. Current Market Situation When the first InterRail Pass was launched on March 1, 1972 it was managed in conjunction by a large number of train and shipping companies. These companies were starting the business of an overall pass that could unite the traveling experience and save money traveling by train at the same time. In 2001, the EuRail Group was established as an organization dedicated to the marketing and management of the EuRail pass. The EuRail Group is wholly owned by the participating railways and shipping companies with key decisions being taken by the board, consisting of eight appointed member railways. In addition, the Group has many benefit partners, including hotels, transport companies, and museums, which offer their services either at a reduced rate or free of charge for rail, pass holders. In 2007 the EuRail group took over the InterRail pass, to give a more commercial focus. The Market of the InterRail has existed since 1972; there have been several changes. The first InterRail ticket was targeted towards backpacking students under the age of 21 travelling around Europe on a limited budget and cost around 118 euros. The age limit for availing of an InterRail holiday increased from 21 to 23 in 1976 and rose to 26 years in 1979. InterRail targets its rail passes to European residents of all ages and budgets. The highest sales originate in the UK, Germany, Switzerland, Spain and Sweden. Around 74% of InterRail customers are youth, under the age of 26. The proportion of young travellers is higher for the InterRail Global Pass; 79,7% of customers are youth. For the One Country Pass, this proportion is 62,1%.. EuRail Group reports a positive full year of sales for the fifth year running. They had over 248,000 Europeans explored Europe by train. Compared to 2010, the month-to-month sales followed a similar pattern that on 2010. But there were some changes in the months of April and May. These two months were more productive than last year, having a positive sale of 11% for April and 14% growth in May. Also there has been and increase on online sales if InterRail passes, being a 25% amount of the total sales. The InterRail Global Pass, valid for travel in 30 European countries, is still and remains for the 5 year the most popular option among the audience of youth travellers under 26 years old. But within the Global pass, there is dominance for the flexible travel. Due that is in high demand, it is clearly visible that the 10 travel days within 22 days is the most popular product for travellers not wishing to travel everyday of their vacations. In second hand, we have the InterRail one country pass, also having a significant increase of 5. % in sales. The most popular destinations for traveling with the One Country pass are Italy and Germany that combined form 62% of the market share. The Travellers purchasing this pass are interested in visiting one particular country and explore it in depth. The EuroRail Group estimates to see continued growth for the InterRail passes, even with the challenging current European economic state. Mr. de Groot, Managing Director of the EuRail Group said: â€Å"Whilst growth remained modest for the InterRail Global Pass, we still welcomed an additional 5. 00 passengers last year. This reconfirms that InterRail Passes are still an excellent way to explore Europe. We are therefore confident that InterRail sales will continue to grow in the years to come as more and more Europeans discover the real value for money this pass represents† SWOT and Market Analysis In the SWOT analysis we get to describe the strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities and Threats that are involved in a business venture. The analysis divides into two many factors, Internal and External. The Internal factors are the strengths and the weakness of the organization. The External factors are the Opportunities and Threats presented by the external environment to the organization. One of the biggest Strengths of the InterRail is that the EuRail Group has total control over the market, as I see it, it`s a Monopoly. I research for a competition pass, another company that was doing something similar, but I found none. This is because the EuRail Group belongs to the most powerful train companies in Europe, leaving no market space for any other company to equal their promotions. Their only competition in a certain way will be the airlines, giving in some cases cheaper tickets or having a faster route. But they make sure their costumers get what there are looking for, and that will be discount and saving money. EuRail Group has many benefit partners, including hotels, transport companies, and museums. This is another strength for the InterRail; they have gathered all of the companies their users are more likely to need in their travels, creating a microenvironment between them. Some benefits InterRail pass holders have are discounted and free ferry travels on various European crossings. An example can be, that the pass holder can travel free in a ferry between Italy and Greece and even can stop off in the Island of Corfu with no charges. Another strength the InterRail pass is the reputation it has in its marketplace. Since I’ve been to Europe in 2009 to travel with pass, every person I know from then, that has a relatively experience in travel in Europe or has been planning to do so in the near future, has the perception that the InterRail pass is the best way to travel, not only to get to know all of Europe in a short amount of time, but also a way to do explore and save money for other things. Another strength that InterRail has compared to airlines is that most of the stations are in the heart of the city, making it easy to move when arriving to your destination. As everything in life, there are strengths and weaknesses. The hard part about describing a weakness in this product is that they are the only product for this market. But there are a few we can talk about. One of the first weaknesses I found when starting to research was that at first, the InterRail was design for young people to get to travel around Europe for a low amount of money. But things have change, since the beginning of the InterRail; the pass has been changing its rules to travel. At first there was only a global pass, an unlimited month, were you can get in any train you want in the determined month you selected. But know, there is a different story. InterRail has now broken into several passes. Creating a new and different way to travel, having more options, because Europe had been divided into areas. However, some young people believe that the new-zoned tickets have destroyed the original InterRail concept, which allowed unlimited travel over a set period. Leaving the impression that the InterRail is to make profits, and not to help the traveler. Another weakness that I discover was the airplanes. As I began to research, general population of the InterRail had some problems with the booking of trains, they said that they didn’t know that some trains needed to be booked in advance or they didn’t know the difference within the ones you have to book or the ones who don’t. Creating an opinion that is safer to go in plane because you have secure you place in the plane when buying your ticket. Another weakness the InterRail has the trains cant leave the tracks, therefore having to create first the route with track to make the journey possible. The External factor of the InterRail are to be consider, these factors determine the position and structure EuRail Group has to market to be well placed in within the market. The opportunities InterRail has in the market are beginning to getting achieved. As you have read, the InterRail only moves within Europe. But what about Morocco, Libya, Iran Saudi Arabia or even better Mexico. The Opportunities in within this product will always be to get as much destinations as possible. In within the travel market, the best agency will take you every place you want to go. Creating for InterRail, only a matter of agreements and routes to increase the diversification in the audience and options for the users. Another Opportunity the InterRail can have, to create another kind of pass called â€Å"The Group†. This pass will have an itinerary and a trip already planed with nticipation, but the user gets to travel all the time with a group of 10 people, creating the experience of getting to know a new country or city with new people. Therefore the InterRail will become something more than just a pass, but the creator of a full experience trip. The Threats to this organization, the EuRail Group, has been and always be the airplane market. Because of that, the airlines become a direct competitor for the InterRail. This other different market basically does the same but has its difference. In the general outcome of airplanes, at first were considered annoying because of the separation between the city and the airport, the check in for the baggage and the long waiting hours to clime the plane. But all of this has given the InterRail some fight. Another advantage of the plane is that they can travel over seas, giving the advantage in some determined routes takes less time to arrive to the destination rather than the trains, making them look slower and therefore not functional. When booking a flight within 3 or more weeks in advance is a threat for the InterRail, because the airlines can assure very low prices. Another threat that came to me researching the airplanes market was the very low prices they can have in some flights. There is a website called lastminute. com, this website has flights opened at the last minute, 3 days before departure in some cases, and are sold at low prices. Another possible threat is the organization of the most powerful bus companies in Europe. Imagine creating the same pass the trains have, but creating a network of buses that could take you every were you want in the continent. Creating a similar but profitable competition for the InterRail a much cheaper way to travel in within Europe. This could be a niche even smaller than the one InterRail actually posses but can be a start, for the pass to be knowledgeable in the market place. As a general market analysis, the InterRail is in great positioning on the travel market. Giving the ability to travel all around Europe for a low cost, providing destination to every corner. The strength of the product makes it an incomparable experience, due to the factor that is an network of companies that have to share the expenses on the railing, and by that case, created an group for that same reason. As for the railing, its part of it weakness because of the fact that a railway route has to be made in order to create the destination, but what about those destination, not much frequent, but get to have a share in the audience options. Will it be profitable to have that destination; will it be profitable to have the railroad made? There is a lot to be discovered in this market but the most intriguing part of all its future are the opportunities they have to become bigger, to expand to different countries to different continents. Also the rapid innovation on train machinery makes the trains arrive faster at their destination and become more profitable an even more environmental friendly. For last, the most direct competitors for the InterRail are the airlines. They can have lower prices for longer destination, creating a disadvantage for the InterRail. Also can be considering the conjunction of the bus owners, having the same effect as the EuRail Group.