Technology continues to grow in importance within the rail industry. Not only in passenger experience but also in creating operational efficiencies and in the use of data to inform decision making.
In order to provide a seamless rail experience, train operators need to continue to explore new technologies and innovations that can help in the smooth and efficient operation of trains.
For example, the use of a digital twin enables rail companies to create a digital replica of physical assets, which provide access to real-time data that can be monitored and analysed to inform decisions around optimisation.
Here, we look at a number of other ways that the use of technology is revolutionising the rail experience – especially for passengers.
Smart ticketing – what do passengers expect?
Ticketing in rail, particularly in the UK, has been a challenge to deliver well and meet passenger needs and expectations, as it doesn’t have the same level of flexibility as other modes of transport, where tickets can be changed and upgraded.
It’s limited by purchasing in advance and peak or off-peak pricing. Other rail companies around the world are looking to create memberships and other models that have benefits for the passenger as well as the business.
Wizz Air, for instance, offers three different membership programs designed to enhance its customers’ travel experiences. These include a discount club, a monthly subscription for frequent flyers, and a year’s pass for those who want freedom and flexibility.
There has been a big shift in the last few years, in the use of digital applications such as aggregators that help passengers compare prices, purchase and self-manage their bookings.
Although providers such as Trainline have been selling tickets since 1999, it wasn’t until 2007 that it introduced Advanced Smartcard Technologies. And as technology developed, it started offering a wider variety of features such as Split Save, which allows passengers to save money by buying multiple tickets for a journey rather than a single ticket.
This is a great example of working within the limitations to meet a customer need around cost efficiency that might otherwise prevent them from travelling. And technology and data are key enablers that can unlock a world of possibilities in rail travel.
Real time info – what do passengers want and how does it impact operational efficiency?
In the travel industry, particularly rail, real-time information is high on the priorities of what customers want. It enables passengers to plan and make decisions, which ultimately gives a sense of control.
Particularly in degraded situations where there are delays or issues with the rail service passengers are expected to travel on, real-time information can help train operators manage expectations and communicate with their passengers in a way that creates trust and minimises the impact passengers may have due to that disruption.
Network Rail has the functionality to enable passengers to track their train and get real-time updates straight to their phone when they’re on the move. And this data is often used by other travel providers like Trainline and Citymapper.
Sustainable and economical benefits of rail
For many passengers, sustainable travel plays a key role in their decision making. It’s therefore important for train operators to communicate how passengers’ decisions are helping in the fight against climate change.
Almost a third of holidaymakers in Britain are now travelling by boat or train in a bid to reduce their carbon footprint. That’s according to a 2022 How We Live Report by Aviva. Similarly, 62% of Europeans support a ban on short-distance flights in a bid to fight climate change.
Modernising the rolling stock with energy-efficient trains is essential for the rail industry in order to reduce its carbon footprint.
For instance, Siemens Mobility recently announced that its new fleet of battery-operated trains could save Britain’s railways £3.5 billion and 12 million tonnes of carbon dioxide over the next 35 years.
The ability to use technology to measure carbon footprint and environmental impact, as well as communicate it using digital channels, can also help to create awareness among passengers who may be less environmentally conscious. This helps the industry bring a key benefit to the surface.
It’s also important to look at B2B customers, and the environmental impact a business has by choosing to move its goods by rail. In the UK, rail freight produces 76% fewer emissions than the equivalent heavy goods vehicle (HGV) journey, with each freight train removing up to 76 HGVs from roads. This results in 1.66 billion fewer HGV kilometres a year. (Source: https://www.digicatapult.org.uk/blogs/post/the-value-of-emerging-technologies-for-the-rail-industry/)
Rail can also contribute hugely to the economy. A 2019 report commissioned by the Railway Industry Association and carried out by independent researchers at Oxford Economics found that rail supports £43 billion gross value added (GVA) in economic growth, 710,000 jobs, and £14bn in tax revenue.
The role of AI in the rail industry
Artificial Intelligence (AI), particularly generative (gen) AI, has become a tool used in businesses across the board. And rail is no exception.
With the infinite possibilities, the rail industry is looking to focus on use cases focused on the top criteria that passengers use to inform their decisions around the use of rail, which are price, safety, reliability and convenience. (Source: https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/boosting-passenger-preference-for-rail)
The capability of analytical AI to analyse historical data and make numeric predictions and gen AI capability to produce new outputs similar to human-generated content have great opportunity in rail.
According to a study by McKinsey, AI is only an emerging trend for most railway companies – few have implemented any kind of AI at scale with success. Therefore, the wide use of AI in rail might take a little while longer to reach application at scale that passengers will see immediately.
However, for rail companies that are looking to disrupt and transform the industry, AI should be high on the agenda so the readiness for adoption is there in order to create differentiation and stand out in the market.
Hitachi, for instance, is using AI to detect trespassers in order to prevent costly delays. It has also a developed a system to provide a more personalised rail experience to passengers.
For passengers, AI can suggest future holidays based on data and trends and even plan your next trip based on your travel preferences.
Security
Security and safety in rail are number one priorities for operations. Ensuring there are minimal risks from an operational perspective is part of running the service.
As passengers, we see the standard security measure and touchpoints in place like ticket barriers, CCTV, and X-ray baggage scanning at international rail stations. These have all evolved through technological developments to keep passengers safe.
With more personalised digital services supporting rail travel, there will be the added element of ensuring personal data is kept safe and secure. In addition, customers are aware of how much their data is worth and the risks of sharing data. So, they’re becoming more vigilant and making more conscious choices about trading their data for a more personalised experience and convenient service.
Despite security being something everyone agrees should be in place at times, the operationalisation of security measures can work against the seamless experience train operators would like to provide for passengers.
Seeing security as a service is a good way to start to create innovations across security processes and exploring how technology and data can help shape and deliver such measures.
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