Quality Commitments RENFE-Operadora

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1 Fast track to Sustainable Mobility Apolinar Rodríguez Díaz Quality Commitments RENFE-Operadora 1

2 Rail services attributes: Safety Comfort Competitive Journey Time Punctuality Service High Standard Environmental Respect RENFE-Operadora s Initiative New Specific Commitments to Clients 2

3 RENFE-Operadora s Initiative Towards Commitment to Clients 1 st Stage High Speed Punctuality World Pioneers 2 nd Stage High Speed on-board services New Quality Commitment World Pioneers Extend punctuality to all services: Long & Medium Distance Future Commercial Strategy will allow new stages Employees & Suppliers alignment Increase Services Commitments Commitment-fulfilment 3

4 1 st Stage: High Speed Punctuality Punctuality Commitment: Date: September 11, 1994 Product: High Speed Trains World Pioneers Commitment: Total ticket price refunded if a train arrives at its destination more than five minutes late The price is refunded in cash, from the day after the delay 4

5 High Speed Punctuality Commitment Increased Demand Tendency 180, , , , , ,000 First price increase: 10% Punctuality commitment 150, ,000 Second price increase: 6% 140,000 apr-93 jun-93 aug-93 oct-93 dec-93 feb-94 apr-94 jun-94 aug-94 Evolution of the number of AVE passengers - monthly moving average - oct-94 dec-94 feb-95 apr-95 jun-95 aug-95 oct-95 dec-95 5

6 High Speed Punctuality Commitment Financially Acceptable Number of trains: Total: 234,850 Delayed: 875 Number of Passengers: Total: 58,677,312 Delayed: 188,130 Income (Mill. Euros): Total: 2,122.6 Refunds: 7.3 O.37% O.32% O.34% Punctuality commitment on AVE trains from 12 September 1994 to 31 December

7 1 st Stage Outcome Implementation of Punctuality Commitment on AVE trains led to: Increase in market share Increase in client trust Increase in satisfaction Definitive Consolidation AVE vs Air Transport AVE products & RENFE-Operadora s image improvement Employees & Suppliers alignment Commitment fulfilment 7

8 2 nd Stage: On-board new quality commitments Punctuality Commitment Success on AVE trains led to: Punctuality Commitment gradual implementation in other products: Long Distance Medium Distance RENFE-Operadora undertakes new quality commitments: Video / Audio, Air-conditioning, WC, Meal service at seat, Restaurant/cafeteria Employees & Suppliers alignment Commitment fulfilment 8

9 On-Board Services: New Economic Compensations for lack or deficiency High Speed / Long Distance Lack / Deficiency of: Video/Audio Air-conditioning (total) Air-conditioning (partial) WC Meal service at seat Cafeteria / Restaurant From 01 January 2002 to 26 May % % Refund on ticket price: Situation since: 26 May % 25% 9

10 Minimun legal compensations for punctuality deficiency are too short Spain European Union Delay Ticket price refund Delay Ticket price refund More than 1 hour Between 60 and 119 minutes 25% More than 1 hour and 30 min. Equal / more than 120 minutes As a general rule, for all products, according to the stipulations of the Railway Sector Regulations, Decree Law 2387 of December 2004 REGULATION (EC) No 1371/2007 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 October 2007 on rail passenger's rights and obligations Article 17 - Compensation of the ticket price All railway companies try to establish punctuality commitments beyond legally demanded 10

11 TRD trains Delay compensations offered by RENFE-Operadora More demanding commitments by products Products: Madrid-Sevilla AVE trains Madrid-Puertollano AVANT trains Cordoba-Sevilla AVANT trains Transitorily: Any other AVE trains and any other AVANT trains Alvia trains, Alaris, Altaria and Euromed Delay: More than 5 minutes More than 15 minutes More than 30 minutes More than 20 minutes More than 40 minutes More than 60 minutes Between 30 and 44 minutes Regional Trains (Except TRD trains) Between 45 and 59 minutes More than 60 minutes Between 15 and 29 minutes Between 30 and 59 minutes More than 60 minutes Refund on ticket price: 25% 25% 20% 11

12 France SNCF Germany DB Italy FS Portugal CP Improvement in delay compensations also apply in most European countries... Country: Type of Service: Delays: Compensation: TGV: Journeys of more than 100 km. Main line trains: ICE, IC/EC, IR, MET and Thalys And CIS on national routes IC- Sprinter DB NZ, Uex, CNL, EN, D Italian Eurostar trains Intercity and Eurocity trains on national routes Overnight Intercity trains and Express trains Quality tilting trains on the main lines and IC conventional trains More than 30 minutes More than 60 minutes (including missed connection) More than 30 minutes More than 120 minutes (including missed connection) More than 25 minutes More than 30 minutes More than 60 minutes Between 60 and 90 minutes More than 90 minutes 1/3 of the ticket price, in travel pass vouchers 20% of the ticket price, in travel pass vouchers Value of the IC-Sprinter train supplement, in travel pass vouchers 20% of the outbound ticket price (including additional prices), in travel pass vouchers of the ticket price, in travel pass vouchers 30% of the price of the ticket and used reservation, in travel pass vouchers 30% of the price of the ticket and used reservation per seat and 20% of the couchette or bed service price, in travel pass vouchers of the fare of the fare Source: CER Implementation of the Charter on Rail Passenger Services in Europe 2005 Annex II 12

13 ... and specially in the top products of High Speed services. Company: Type of Service: Delays: Compensation: Thalys Eurostar Only for international journeys All services, except Avignon and ski trains More than 30 minutes More than 60 minutes More than 120 minutes Between 60 and 180 minutes More than 180 minutes 20% in vouchers (cash in Germany) in vouchers (cash in Germany) in vouchers (cash in Germany) in travel pass vouchers or a free outbound journey Cash refund Source: CER Implementation of the Charter on Rail Passenger Services in Europe 2005 Annex II 13

14 Conclusion: High Speed will find advantage versus other transport services if, as well as competitive journey time, they establish in its Commercial Strategies Commitment to Clients Punctuality Services High Speed Long Distance Medium Distance Commuter Train Involve Employees & Suppliers in Commitment fulfilment Extend commitments to all services: Long & Medium Distance 14

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