Industry Analysis & Industry Trends
Industry revenue is expected to be £7.33 billion in 2011-12, up 1.9% per annum since 2006-07. A range of factors, including higher real average fares, increased capacity and population growth, have supported revenue growth. Costs of alternative transport have increased more than rail fares, maintaining rail's competitive advantage and leading to passengers choosing trains over cars. In the five years through 2010-11, the total number of passenger journeys increased by 4.7% per annum and passenger kilometres increased by 4.6% per annum. Industry revenue is forecast to increase by 3.4% in 2011-12.
The price of transport fuels soared in the five years through 2008. Diesel prices rose by 8.6% per year and unleaded rose by 7.1% per year... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a medium concentration in terms of revenue, with the top four companies generating about 64.8% of industry revenue. The top four companies, First Group plc, Stagecoach Group plc, Go-Ahead Group plc and Keolis (UK) Ltd, all operate several rail franchises, as the average size of each railway is small. The top seven companies generate 88.9% of industry revenue.
Since 2005 industry concentration has declined, with National Express Group losing several contracts, reducing its market share from 16.4% in 2008-09 to just 9.2% in 2011-12. One of the contracts that National Express Group lost was for the operation of East Coast Railways, which was re-nationalised in 2009... purchase to read more