Trainline describes themselves accurately as a ‘one-stop-shop’ for train and coach travel services (Trainline, 2021). Working with rail and coach operators in 45 countries, Trainline prides itself as Europe’s leading ticket app that saves time, effort and money through personalising the information it provides based on every customer’s needs. This includes access to the plethora of travel routes, prices, travel times and durations on one single platform with organised display, in other words making research or ticket purchases convenient for travellers. Using AI-driven techniques, their application measures the best routes with minimised travel hiccups for its customers, while extending its services to deliver digital travel passes so as to eliminate the need of physical tickets. Trainline intrigues me with its use of technology to smooth operations and collaborations with partners, while ensuring their quality of services is of top-notch for travellers within the UK or across the European borders.
In the train/coach industry, the Trainline company utilises the Five Force Analysis to devise its business strategies based on its position among its competitors or rivals. The industry is highly competitive with many firms providing similar services as Trainline, few examples include Train Pal and Omio. This rivalry has driven Trainline to continuously differentiate and grow its coverage, while specialising in the train/coach industry. Omio’s services across 50 countries include flights and ferries booking- which suggests broader rather than deeper coverage (Omio, 2021). Trainline pinpoints this difference and puts focus on enhancing its service quality, even though it is exposed to several weaknesses like testing customers’ brand loyalty and preferences for the methods of transport. Customers are likely to prioritise their methods to travel, and if it involves flights or ferries alongside train or coach, Omio has greater advantage in securing customers, since the customers’ switching costs are low.
Substitutes and new entrants of firms providing similar services are also threats to Trainline. Some common substitutes include purchasing tickets onsite or through tour agencies. Trainline’s mobile pre-booking function minimises search cost and guarantees ticket availability, making the substitutes less reliable and more expensive in terms of time cost. In most cases, pre-booking tickets online secures cheaper tickets than buying them onsite since last-minute demands easily drive up prices (Jerath, Netessine, Veeraraghavan, 2010). However, a con is that a small group of non-smartphone or non-credit/debit card users may find the app useless and would go for its substitutes instead. On the other hand, threats of new entrants in this case are poised by rail companies’ own ticket booking applications. For example, Avanti West Coast started their own app in December 2019 to sell tickets digitally, which makes them new entrants as the Trainline app was founded back in 1997 (Avanti West Coast, 2021). While this leads to industry growth and provides customers with more options, Trainline had to sharpen their services to match their mission and highlight their strengths. Another issue related to new entrants that Trainline strives to solve is to have quick and smooth transitions when rail companies takeovers or mergers take place. For example, when LNER took over Virgin Train East Coast in June 2018, Trainline had to negotiate terms with the new management team and update their loyal customers to assure the change will not majorly complicate their usual travel arrangements (Trainline, 2021). This requires Trainline to be alert, flexible and swift in embracing updates and changes to remain competitive in the industry.
Another aspect of the five force analysis explores the bargaining power of suppliers and buyers of Trainline’s products, which is train and coach services and tickets. The former in this case is the travel companies across countries within Trainline’s coverage. Competition can exist among these entities themselves, but in most cases, different services are supplied in different regions and offer distinct packages or policies to customers. Different companies compete to be included on the application by arranging attractive packages so Trainline users see their products. Trainline is then in the position to standardise how the information is displayed for their customers, so that they can make their choices easily. However, this also means that Trainline needs to provide coordinated updates on changes and delays from suppliers quickly, since customers rely on them for information. Thankfully, with its AI-driven system, rapid transfer of information is possible. This point links the bargaining power of buyers. Customers go to Trainline rather than individual train or coach companies for tickets, and they expect fast and accurate information filtered according to their needs. What Trainline does well is managing their filter options accurately and marketing other important information such as refund policies and offer dates. Trainline has set high standards in their services since customers’ switching costs are low.
In fact, in order to satisfy AI-driven challenges and needs, Trainline has partnered with Dataiku, an AI and machine learning company which specialises in democratising data (Heidmann, 2021). Like other 450 firms, Trainline turned to Dataiku to systemise their data management (Trainline, 2021). This includes employing Dataiku’s workflow development system to manage workflows across teams and projects, thus saving time from doing the work manually. Dataiku’s flexible coding features are useful in managing data from various sources, especially in combining different sets or formats and creating customised connector points to extract specific data based on certain inputs. This includes presenting accurate and relevant information only in accordance to customers’ filters or input. Moreover, Dataiku’s whitebox interface allows rapid detection of any potential data flaw and solves them instantly without causing the entire system to fail (Dataiku, 2021). This evidence explains Trainline’s success in managing their data correctly, which is key to justifying their position in supply and value supply chain management.
Moving away from the Five Force Analysis, Trainline has put in significant effort in its Supply Chain Management (SCM). SCM is commonly split into three sections: Upstream, Internal and Downstream. To achieve a successful system, Trainline has carefully crafted strategies with a mix of technology, especially the five IT megatrends, in each section.
In its Upstream Supply Chain, Trainline uses cloud computing and big data to manage information from rail and coach companies. Trainline coordinates with suppliers to connect train services, and would require fast internet and data transfer. When it comes to the Internal Supply Chain, the app compiles the data received from both suppliers and processes it according to buyers’ input in terms of time, destination, price and currencies. Cloud computing and big data are again utilised to analyse data in this stage. Trainline’s SpiltSave function is able to match search input with the existing product database and present the most optimal results for their customers. For example, Trainline is capable of breaking down travel fares with or without changes, provided by different companies, and suggest the best deals of tickets for buyers (Saran, 2020). Downstream Supply Chain entails the delivery of products to customers. In this case, Trainline emails tickets to customers which includes automatically generated access code and summarised travel information. The IT megatrends involved here are mobile and social media. The former is involved in delivering E-tickets to customers’ personal devices so they could avoid queues on site, while the latter supports ventures in E-commerce and customer service including assessments of refunds and complaint queries. Furthermore, big data is also used to collect and analyse customer purchasing history, which information is useful to determine which destinations typically have higher demands.
In relation to Trainline’s interaction with the industrial environment and its SCM, its value supply chain provides a clearer breakdown of the app’s internal structure and how technology plays a huge role in helping them advance in the business. Value Supply Chain commonly has two sections: primary activities and support activities. Primary activities in the IT system are main work conducted in the overall business operating model, while support activities exist to ensure primary activities are conducted smoothly (TOG, 2020).
Trainline primary activities are carried out in 5 ways: inbound logistics, operations, outbound logistics, sales and marketing, and service. Trainline uses automated systems to update train schedules and to gather updates on train prices. This involves major coordination with suppliers that requires high efficiency and could not tolerate mistakes, making IT the best candidate to conduct the job. In operations, the value chain is prioritised in the fast and accurate analytics of available data and filtering the information according to customers’ input. Trainline uses IT to match customers’ preferences to the best available deals. Trainline’s sales and marketing also relies on IT to run. This includes digital marketing on social media, newsletters via emails and phone applications, which are all computerised and scheduled remotely, saving time and money in delivering information to the public. Outbound logistics entails the distribution of end products to customers. The application utilises IT for auto generation of tickets and access codes, sent to customers’ mobile devices, with no need of physical documents. This supports sustainability of the environment, even saves manpower and time needed for processing the tickets, again saving cost for the business. Lastly, service is a huge part of any business, and in Trainline’s case, personalised scheduled reminders are sent to buyers, so that they feel the importance the company places on each of them. Moreover, post-sales services that concern customers’ welfare and satisfaction also have high significance in the value chain. Trainline sends feedback queries via emails to customers after their rides to learn about their experiences, in order to improve on their work.
Moving on, support activities are crucial to make primary activities possible. In Trainline’s administrative and management system, an electronic scheduling and messaging system is used to coordinate the communication between the application and all its partnered train or coach companies. This entails standardised methods of information transfer on a daily basis that could smooth operations. Like any other companies, Trainline’s internal structure will require a human resources department that manages workforce planning, even though in this case, internal workforce is not the most prevalent aspect since most coordination is conducted digitally. It is instead the customer support system that Trainline puts priority on, so allocating talents that can provide the best services to customers with a human touch becomes essential (Trainline, 2021). Next, for the technology aspect, Trainline’s adaptation of a digital application on mobile devices is specially designed to display their information with the most clean and efficient use of space. Lastly, procurement is aided with a digital ordering system. With the help of Mobile IT megatrend, anyone can book tickets on Trainline as long as they have access to the Internet. This also means Trainline coordinates with cashless payment companies like VISA and PayPal to ease customers’ experiences of purchasing tickets on their platform.
By now, points have been made that, as a digital business, Trainline runs at its prime with its unique and competent use of digital technologies. As an E-commerce, it has ventures in both B2C and B2B sectors, which focuses on qualities such as interactivity, personalisation, global reach and ubiquity (Trainline, 2021).
In Trainline’s B2C ventures, the Reach-Act-Convert-Engage (R-A-C-E) Framework is a good layout of its marketing strategies. First, Trainline establishes brand awareness and presence on the Internet through a mix of marketing techniques. Investments in branding and public relations showcase Trainline’s stellar service quality and collaborative features. The app continues to promote the process of their work and services, which put customers’ satisfaction in focus when conducting Research and Development. Physical evidence, especially customers’ reviews, are even used as a means of building the positive image crucial to attracting new audiences. Moreover, the use of Digital Marketing Funnel can be observed in Trainline’s strategies. Search engine paid ads and marketing are employed to build the web presence desired. Trainline will appear top of the search engine results when customers look for train tickets websites. Their website was designed to provide transparent and complete data that highlights Trainline’s excellence. It is Trainline’s belief that actual data adds points in convincing customers they are the best option (Dataiku, 2021).
Secondly, Trainline interacts with the audiences as an act to understand their needs and preferences. Thus, it strategises its personalised newsletters and general social media content, and collects data to track response rates. This behavioural targeting, which extends to tracking customers’ search and purchasing history, could help Trainline further customises packages or information for the individuals. However, this may raise privacy issues, thus data collection is expected to only be executed with customers’ consent, or Trainline might face legal charges. Next, Trainline strives to achieve sales by converting the individuals who see its advertisements into buyers of its services. Yet, Trainline does not just stop there, building brand loyalty requires long-term engagement and consistency in high-quality services. The brand strengthens its relationship with customers by serving the latest updates of any weather disruption and covid restrictions rapidly. In a time where Covid-related travel restrictions are ever-shifting, Trainline’s quick updates on its digital app are not only helpful but also make it more reliable than other sites. This helps customers make plans, especially during the holiday seasons. This comes with specially designed travel deals to low-risk areas. For example, promotion of Eurostar trains to certain cities like Paris was ceased back in December 2020 when the Covid-19 situation in France was alarming, but it was brought back in December 2021 when the pandemic has been alleviated. Travel restriction details and safety advice was also provided for potential customers to review (Trainline, 2021). Furthermore, Trainline makes use of their app and newsletter to encourage customers to interact more, by providing written feedback or rating their work for internal revision and improvement purposes, thus showing customers they care (Pure360, 2017). This commitment makes the company stand out among its rivals.
Similarly, Trainline puts up burning energy in their B2B ventures. Trainline Partner Solutions (TPS) is giving startups the opportunity to employ Trainline’s softwares and app designs, with the goal of empowering more rail travels worldwide. Trainline offers their White Label technology, which means their re-brandable products that are sold to other companies for their developments. Promising customer-focussed features and functions of Trainline’s own B2C site, Trainline does not seem to fear the threat of new entrants, instead empowering their operations to assist meeting the global travel demands. This reflects Trainline’s confidence in its establishment in the market and the quality of its products. The tool supports content across markets and currencies, even provides technical support from the Trainline team itself.
Conclusion
Trainline’s success is not only based on the quality of its services and the use of AI-driven technology. It lies in their attention to details with customers’ satisfaction placed as a priority. This is shown through their strategised interactions with customers, care for obtaining feedback for improvements and their main intention to solve travel concerns rather than to just make profit. Its use of digital innovation is pioneering in the industry and its methods of establishing brand loyalty are key to determining its success in the 21st Century.
References
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Saran, C. (2020) Case study: How Trainline keeps customers satisfied. Available online: https://www.computerweekly.com/news/252476691/Case-study-How-Trainline-keeps-customers-satisfied
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Trainline (2021) Available online: https://www.thetrainline.com/about-us
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