Airlines in Italy have received some surprise competition from high-speed rail links over the last four years, says TRA Consulting CEO and NTV studies office head Professor Andrea Giuricin.

NTV operates the Italotreno nonstop service between Milan and Rome, in competition with State operator Trenitalia.

The trains cover the distance of around 600 km in three hours.

This service mirrors the high-speed rail link the South African government has stated it wishes to introduce between Durban and Johannesburg.

NTV started operations in 2012. While struggling at first, it finally reported a pre-tax profit in 2015.

Strong competition between Trenitalia and Italotreno has seen ticket prices slashed, while also leading to a number of innovations, with the State operator copying several of the private operator’s innovations, says Giuricin.

“Rail remains innovative. It is not old; it is not for the museum. It is still very competitive.”

Before 2009, rail had a 35% market share on the route between Milan and Rome compared with airlines, says Giuricin. In 2011, rail’s share had risen to 55%, and by 2015, it was 70%.

“The demand for high-speed rail in Italy has increased by 65% over the last few years.”

NTV offers 15 daily trips between Rome and Milan, with each train consisting of 11 coaches, offering 450 seats in total. There are four classes of travel.

The Smart class offers plain seating, with a cinema coach also displaying movies. Smart XL allows for more comfortable seating at a small price increment.

Prima offers extra space, complementary wine and snacks served from a trolley, much like business class on airlines.

Club mirrors first-class service on airlines. Club class consists of one carriage, with an open saloon of 11 seats and two compartments of four seats each, ideal for small groups or on-board meetings. 

Club features reclining seats, lots of space, complementary wine and snacks served throughout the journey by a steward or stewardess dedicated to the Club section. Each seat also has a small fold-out touch-screen television.

All customers, throughout the train, have access to free WiFi.

One big advantage NTV has had as a private operator is to offer flexible pricing, ensuring it could “catch all demand”, says Giuricin.

Prices can vary between E10, if booked far in advance, to E150 for a Club ticket.

“You do this to increase revenue and to increase the load factor in some trains,” says Guiricin.

The Italotreno service also offers preboarding lounges in Milan and Rome.

Staff can speak several languages, adds Giuricin. By using the information gleaned from online bookings, it is also possible to place the appropriate staff on trains when necessary – such as having a Chinese-speaking official on board when a large Chinese tourist group makes use of the high-speed service.

Staff are also allowed to upgrade a loyal customer should there by space available in other classes.

Italotreno has also expanded its offerings to include bus services, car hire and hotel bookings – which can all be linked to customers using the Milan–Rome link.

Giuricin says South Korea and Spain are also considering adding second, private operators to its State-owned services.