BahnCard

BahnCard (German "Bahn" – Rail) is a loyalty card offered by Deutsche Bahn, the German national railway company. Unlike airline loyalty programs, but similarly to the UK Young Persons Railcard, the BahnCard entitles the passenger to a discount price and must be purchased prior to travel. The BahnCard is valid for a year, all passengers are eligible, and it is non-transferrable. Three variants are sold by Deutsche Bahn: The BahnCard 25, the BahnCard 50, and the Mobility BahnCard 100. The first two variants allow passengers to get 25% and 50% discount respectively on standard rail fares, while the Mobility BahnCard 100 is a type of annual ticket that allows free unlimited travel on most of the German railway network for a fixed price.

In 2007 there were 4.01 million BahnCard holders in Germany.cite news
title= Bahn verkauft mehr Bahncards
url= http://newsticker.welt.de/index.php?channel=wir&module=dpa&id=16745654
work= Die Welt
date= 2008-01-26
language=German] More than half of the passenger revenue of Deutsche Bahn comes from tickets sold to BahnCard holders.

Apart from entitling the holder to discounts, the BahnCard also functions as an ID card for the validation of online tickets, mobile phone tickets, and for purchasing tickets on vending machines. Bahncard holders can also call a discounted hotline printed on the cards, and an optional travel insurance can be included.

Motivation

The main motivation for introducing the BahnCard was to increase competitiveness against the automobile. Prior to the BahnCard, Deutsche Bahn priced a trip between any two points in direct proportion to the distance travelled; this pricing structure proved uncompetitive with driving.cite journal
first = Hermann
last = Simon
coauthors = Robert J Dolan
title = Price Customization
publisher = American Marketing Association
journal = Marketing Management
volume = 7
issue = 3
language = English] The card allowed a two-dimensional pricing schedule, which consists of card price (a fixed cost), and ticket price (a variable cost). Once a passenger has bought a card, its price becomes a sunk cost and this makes the train more similar to the automobile, which is also characterised by high fixed costs. The decision whether to take a car or train for a particular journey depends mostly on the marginal price per kilometer, not on the total cost. cite journal
first = Heike
last = Link
title = PEP-A Yield-Management Scheme for Rail Passenger Fares in Germany
journal = Japan Railway & Transport Review
volume = 38
year = 2004
month = March
page = 54
language = English] The effect of the BahnCard was to shift the marginal cost of the train journey below that of the car journey for many customers.

History

Predecessors: 1955-1992

A predecessor of the present-day Bahncard was introduced in 1955 by Franz-Josef Wuermeling, the then Minister for Family Affairs. Discounted train tickets became available for families with many children, and the eligibility pass became known as "The Wuermeling". This pass was offered until 1999.

In 1975 a Senior rail pass was introduced by the "Bundesbahn", valid for men older than 65 years and women older than 60 years, and entitling them to a discount of 50% on long-distance train tickets. Later similar passes were introduced for minors and families, valid for journeys longer than 51 km (reduced to 31 km later). In the "Deutsche Reichsbahn (DDR)", the East German rail company, which was later merged with the "Bundesbahn", normal student ID cards entitled students to a discount of 50% on all journeys and 75% if the journey was between home and university.

Introduction and growth: 1992-2002

The Bahncard itself was introduced on 1 October 1992.cite book
last = Albus
first = Volker
authorlink = Volker Albus
coauthors= Achim Heine
title = Die Bahn. Positionen der Markenkultur
publisher = Nicolaische Verlagsbuchhandlung
year = 2002
pages = 168
location = Berlin
language = German
isbn = 3875840550 ] Initially the card was available for second class travel and 50% discount only, but at Christmas 1992 the "BahnCard First" for the first class was launched along with gift vouchers for the new product. It was sold 650,000 times until the end of the year. A major advertising campaign was started by the (then called) "Bundesbahn", where the card was marketed under the slogar "travel for a year for half the price". The TV advertising campaign for the new product has won several awards.cite book
chapter= Jahresrückblick 1992: Personenverkehr
title = Die Deutsche Bahn
year = 1993
volume = 1
pages = 32–40
language = German ] The indroduction of the BahnCard coincided with the launch of the high speed InterCityExpress trains, a luxury product that gained a wider costumer acceptance than previous intercity trains. One million Bahncards were sold until 20 January 1993.

In July 1995 a BahnCard with credit card functionality was introduced in cooperation with Citybankcite journal
year = 1995
title = Die BahnCard, die mehr kann.
journal = ZUG (Magazine)
issue = 5
pages = 24
publisher = Deutsche Bahn
language = German ] . Two new versions were now offered in addition to the original card, a BahnCard with Visa payment and credit card function a BahnCard with Visa Electron payment (a rechargeable debit card). The credit card Bahncards were valid for a period of two years, and the regular card still for a period of one year. The validity of the cards was altered from the exact day to the end of a month. The new cards now also included a photograph of the customer. The DM 50 (€25) fee for replacement cards (in case of loss) was abolished, and a dining car voucher worth €5 was included with new cards. The customer data and photographs were processed in the USA, which raised privacy concerns with some groups.

This campaign, called "better Bahncard" was criticised by the newspaper Die Zeit in June 1996, which reported that customers were tricked into buying the credit card version against their will and that organisational errors lead to delays of several months and the delivery of incorrect cards. In June 1996 the magazine "Focus" reported that "CityBank must improve Bahncards". Despite a high profile marketing campaign, customers largely rejected the "better Bahncard"; only 390,000 were sold by May 1996 instead of the projected 1.5 million ["Heilbronner Stimme",5 Juli 1996] . The partnership with CityBank was terminated on 31 March 1999.

In 1995, the Rhein-Main-Verkehrsverbund was the first local public transport network outside Deutsche Bahn to join the Bahncard system. A 40% discount on all local train, tram and bus tickets was offered to Bahncard holders, and included in promotional tickets such as the Guten-Abend-Ticket. Long distance DB tickets with Frankfurt as a destination also allowed a single free connecting journey for non-Bahncard customers. In exchange, Rhein-Main-Verkehrsverbund customers were able to use Deutsche Bahn Interregio (regional) trains for free. Commuters who held season tickets from the Rhein-Main-Verkehrsverbund could now also use Intercity, Eurocity, and InterCityExpress trains in the Rhein-Main area for a small surchargecite journal
year = 1995
journal = ZUG (Magazine)
title =
issue = 4
pages = 10
publisher = Deutsche Bahn
language = German ] .

New tariff model and diversification: 2002-present

Towards the end of 2002, Deutsche Bahn undertook a major reform to its pricing strategy. The linear pricing model (where ticket prices were fixed and proportional to distance travelled) that had existed for over a century was partly replaced with a new model. Though the old fare system for "standard tickets" was kept largely unchanged, a degree of yield management was introduced for "discounted tickets". As a part of this reform the discount offered to Bahncard holders was reduced from 50% to 25%. The justification was that the Bahncard discount was now valid "on top" of the new saver fares (called "Plan-und-Spar") that offered discounts of up to 40% on the standard fares but were only available under certain conditions (non-exchangeable; booking more than 3 days in advance; return journey required; "weekeend rule"; limited number of seats).

This reform proved highly unpopular with customers. [cite news
first = Klaus-Peter
last = Schmid
title = Kein schöner Zug
url = http://www.zeit.de/2003/22/Kolumne
work = Die Zeit
date = 2003-05-22
language = German ] [cite news
first = Volker
last = Franz
title = Die Bahnpreisreform: Ein kundenfreundlicher Gegenvorschlag
url = http://www.zeit.de/leben/bahn/bahn_sj_19
work = Die Zeit
date = 2002-11-01
language = German ] After passenger protests and declining passenger numbers, the pricing model was modified again in August 2003. The original 50% discount Bahncard was reintroduced parallel to the 25% Bahncard, however its price was increased from €120 to €200. The non-transferrable Bahncard 100 was also introduced to replace the previous (partially transferrable) network cards.

14 December 2003 the City ticket (see below) was launched in 44 cities in cooperation with the Verband Deutscher Verkehrsunternehmen (Union of German Transport Operators), Deutsche Bahn, and the individual local transport companies. On 12 December 2004 another 13 cities joined the scheme, on 11 December 2005 (coinciding with the new DB timetable) another 19, on 1 April 2007 another 16, and on 10 December 2007 yet 7 more. 100 million rail tickets with "City-ticket" function were sold until the beginning of 2008."Neue Rekorde bei der Bahn". In: "mobil (magazine)". April 2008, p. 55.]

Between 2004 and 2008 the number of BahnCard holders has grown by one million to a number of 4.01 millionDeutsche Bahn AG: [http://www.db.de/site/shared/de/dateianhaenge/publikationen__broschueren/holding/image__broschuere__2008.pdf "Deutsche Bahn: Menschen bewegen – Welten verbinden"] (PDF, 9,2 MB), Berlin 2008, p. 31, (in German)] , the highest in the history of the card. Deutsche Bahn plans to increase this number to 5 million by 2011. In 2007 DB announced that it plans to reintroduce a BahnCard with credit card functionality.

Current tariff structure

Both the Bahncard 25 and 50 can be purchased for a concessionary price by students under 26 years of age.

Bahncard 25

Unlike the Bahncard 50, the Bahncard 25 also entitles the passenger to 25% discounts on top of fares already discounted by 25-50%, called "SparPreise 25/50", that are available under certain constraints such as advance purchase. It also entitles to group discounts, which are meant to make rail travel more attractive to groups of passengers who would have travelled by car otherwise.

Bahncard 100 customers receive a free Bahncard 25 for a partner or family member. Families can purchase additional Bahncard 25s for household members for about 1/5 of the price. Minors can purchase a card for €10 that is valid for three years instead of one.

The number of Bahncard 25 holders is growing faster than the number of Bahncard 50 holders, and a Bahncard 25 passenger undertakes an average of 10 journeys a year, according to Deutsche Bahn. [http://www.spiegel.de/reise/aktuell/0,1518,519967,00.html "Bahn baut Funktionen der Bahncard aus"] . In: "Der Spiegel online ersion", 27 November 2007 (in German)]

Bahncard 50

The Bahncard 50 enables a 50% discount on standard walk-on fares, but not the discounted fares ("SparPreise 25/50"). It is aimed primarily at frequent travellers who want the convenience and flexibility of being able to hop on a train without making prior arrangements.

In 2006 there were 1.8 million Bahncard 50 in circulation, and Bahncard 50 passengers undertake an average of 50 train journeys a year, according to Deutsche Bahn.

Mobility Bahncard 100

The Mobility Bahncard 100 allows unlimited travel on the entire Deutsche Bahn network and 109 local public transport networks across Germany. The card itself is valid as a ticket; no additional paper ticket needs to be issued. Sleeper trains and special "Sprinter trains" (trains that travel non-stop between metropolises) are excluded from the card, but can be used for a small surcharge.

The Mobility Bahncard 100 is aimed at business travellers and heavy train users who make more than 30 long distance journey a year. The Bahncard 100 automatically qualifies the passerger for Deutsche Bahn's VIP program called bahn.comfort. Card holders enjoy a number privileges like free baggage collection from home, and access to VIP lounges at train stations.

The car sharing service offered by Deutsche Bahn can be used at discounted rates by card holders. Some German employers issue the Bahncard 100 as a substitute for a company car [cite news
title = Jobticket
url = http://www.test.de/themen/steuern-recht/meldung/-Weg-zur-Arbeit/1288660/1288660/1288661/
work = Test
publisher = Stiftung Warentest
date = 2005-09-01
language = German ] and this function is intended to make the card a more attractive alternative.An electronic key based on RFID technology is integrated into the card, which can be used to unlock carsharing vehicles parked near train stations. Since the RFID chip is automatically included in all cards, not only the ones with carsharing capability, and since the passenger's photograph is printed on the card, it has been criticised for violating privacy rights, and DB received the 2007 Big Brother Award as a result. [http://www.dradio.de/dlf/sendungen/computer/680584/ "Preisgekrönte Schnüffler"] . In: "Deutschlandfunk", 13 October 2007]

Mobility Card

Deutsche Bahn is in the process of expanding the Bahncard to a fully fledged "mobility card", offering discounts on other transport related services, such as hotel reservations, car rental, car sharing, public transport, bicycle hire, and other services.

City-Ticket

The "City-ticket" is currently available in 109 German cities. Bahncard 25/50 holders who travel over 100 km with a standard ticket are eligible for one free connecting journey by local public transport at their destination, in all cities participating in the program. The return journey to the railway station is also free for a return ticket. The text "+City" is printed on the DB train ticket, making it valid as a local transport ticket. In most participating cities, this ticket is valid on the entire network (rail+bus+tram), in some it is valid beyond the city limits, and in a some only for certain operators. In Hamburg the City-ticket is only valid in certain parts of the city, depending on what train station the passenger arrives in. In Berlin and Frankfurt the City-ticket is only valid in the central tariff zone.

Mobility BahnCard 100 holders are eligible for unlimited public transport travel in the City-ticket zone of participating cities, regardless of whether they book a DB long distance journey or not.

BahnCard and Bus operators

Many bus companies in Germany, including most of the reginal bus routes operated by DB, accept the BahnCard. The same discount of 25% applies both to the BahnCard 25 and the BahnCard 50, and the Mobility BahnCard 100 is valid as a full ticket. The Deutsche Bahn-owned bus operators in Sachsen and Brandenburg do not accept the BahnCard.

Railplus

Since 9 December 2007 the Railplus function is automatically included in the price of the Bahncard 25/50. [http://www.spiegel.de/reise/aktuell/0,1518,519967,00.html "Bahn baut Funktionen der Bahncard aus"] . In: "Spiegel online", 27 November 2007] This allows passengers to purchase international tickets to 24 European countries with 25% discount, as long as the journey begins in Germany. Before December 2007 this option was only available for journeys to Austria and Switzerland under the TEE Rail Alliance. Bahncards with the Railplus option have the "R+P" logo printed on the back.

External links

* [http://www.bahn.co.uk/db_uk/view/products/bahncard.shtml Description at the Deutsche Bahn website (in English)]

References