The European night train sector has seen a significant resurgence in recent years, driven by environmental concerns and a preference for low-carbon travel. Trans-Europa Sleeper (TES) is one of the emerging private operators managing overnight long-distance routes across the continent. It faces competition from national operators such as ÖBB Nightjet, newer entrants like European Sleeper, and budget airlines.
| 2021/22 | 2022/23 | 2023/24 | |
|---|---|---|---|
| Trans-Europa Sleeper (TES) | 120 | 340 | 510 |
| ÖBB Nightjet | 1,100 | 1,800 | 2,400 |
| European Sleeper | 45 | 115 | 190 |
| SNCF Intercités de Nuit | 350 | 520 | 680 |
Table 1 – European Night Train Passenger Journeys (thousands)
To balance operational costs with high load factors, overnight train operators rely on yield management systems and dynamic pricing structures, where fare rates rise as the departure date approaches.
| Route | Date when price was quoted | Date of travel | ||
|---|---|---|---|---|
| 15 June 2024 | 20 August 2024 | 12 October 2024 | ||
| Berlin to Paris | 10 January 2024 | €95 | €75 | €60 |
| 1 May 2024 | €210 | €135 | €90 | |
| Brussels to Prague | 10 January 2024 | €80 | €65 | €50 |
| 1 May 2024 | €165 | €105 | €75 |
Table 2 – Standard Couchette ticket prices quoted on different dates
Many operators also offer passengers standard cabins or premium private upgrades with additional benefits such as meal plans and station lounge access.
| Operator | Base Cabin | Private Compartment | Gourmet Meal Plan & Lounge |
|---|---|---|---|
| TES | €135 | Free | €55 |
| ÖBB Nightjet | €160 | Free | €65 |
| European Sleeper | €115 | €25 | €40 |
Table 3 – Cabin configurations and add-ons for Berlin to Paris (to travel on 20 August 2024)
Using Table 2, explain the concept of opportunity cost.