ENSPIRING.ai: Europe's sleeper train network is expanding. Can it go the distance?

ENSPIRING.ai: Europe's sleeper train network is expanding. Can it go the distance?

The video explores the resurgence of sleeper trains in Europe, their historical background, and the economic challenges they face. Once a common form of travel, sleeper trains experienced a decline due to factors like high-speed rail prioritization and competition with low-cost airlines. Post-pandemic changes in air travel costs and increased environmental concerns have sparked renewed interest in sleeper trains, turning them into viable alternatives for eco-conscious travelers.

A spotlight is put on the European Sleeper, a new startup aiming to capitalize on the rising demand for overnight rail travel with routes such as Brussels to Berlin. It's part of a broader European initiative promoting night train services through logistical support rather than direct financial aid. The company leverages community investment to develop its offerings despite challenges like finding suitable rolling stock and needing further financial backing to modernize their carriages.

Main takeaways from the video:

💡
Sleeper trains are making a comeback in Europe as an eco-friendly travel alternative post-pandemic.
💡
Economic and logistical challenges remain for operators, including obtaining rolling stock and managing costs.
💡
New services like European Sleeper indicate a growing interest and potential renaissance of night train travel.
Please remember to turn on the CC button to view the subtitles.

Key Vocabularies and Common Phrases:

1. existential [ˌɛɡzɪˈstɛnʃəl] - (adjective) - Relating to existence, especially human existence. - Synonyms: (philosophical, ontological)

Just five years ago, the continent's sleeper train seemed, if not in an existential crisis, then in decline.

2. prioritization [praɪˌɒrɪtaɪˈzeɪʃən] - (noun) - The action or process of deciding the importance or urgency of a task over others. - Synonyms: (ranking, preference, arrangement)

Factors, including track access charges for train operators, a prioritization of high speed rail projects and competition from lower airfares all contributed to cuts.

3. refurbished [rɪˈfɜːrbɪʃt] - (adjective) - Renovated or redecorated to make it clean or better. - Synonyms: (renovated, rejuvenated, restored)

And from luxury services to more practical options, new routes and refurbished carriages are cropping up across the continent.

4. romantic [rəʊˈmæntɪk] - (adjective) - Characterized by or suggestive of an idealized view of reality. - Synonyms: (idealistic, picturesque, alluring)

There's something really romantic, isn't there, about riding on trains through the night, going to bed in one country and waking up in another.

5. disposable income [dɪˈspoʊzəbl ˈɪnkʌm] - (noun) - Money available for spending after taxes or essential living costs have been accounted for. - Synonyms: (spending money, discretionary income)

As the 19th century continued, people began to have more disposable income.

6. renaissance [rɪˈneɪsəns] - (noun) - A revival or renewed interest in something. - Synonyms: (revival, rejuvenation, resurgence)

We could well see a renaissance of the sleeper train, which would be really rather splendid.

7. crowdfunder [ˈkraʊdˌfʌndər] - (noun) - A person or initiative that raises small amounts of money from many people, typically via the internet. - Synonyms: (fundraiser, public finance)

Chris and his business partner Elmer van Buren, both long time rail industry employees, raised €500,000 from 330 small investors, then launched a crowdfunder that attracted another €2 million.

8. logistical [ləˈdʒɪstɪkəl] - (adjective) - Relating to the organization of moving, housing, and supplying troops and equipment. - Synonyms: (organizational, administrative, managerial)

So far, the support has been logistical rather than financial.

9. subsidies [ˈsʌbsɪdiz] - (noun) - Financial aid supplied by a government to an industry for reasons of public welfare, the economy, etc. - Synonyms: (grants, financial aid, support)

They both remain loss making for the operators and receive government subsidies.

10. connectivity [ˌkɒnɛkˈtɪvɪti] - (noun) - The state of being connected or interlinked. - Synonyms: (interconnection, linkage, network)

Train operators will work together to improve connectivity on journeys with separate legs.

Europe's sleeper train network is expanding. Can it go the distance?

You find it's like a bit of a bucket list for people to be able to travel on. Because there's only two in the country, sleeper trains across Europe are making a comeback. And from luxury services to more practical options, new routes and refurbished carriages are cropping up across the continent.

Just five years ago, the continents sleeper train seemed, if not in an existential crisis, then in decline. Factors, including track access charges for train operators, a prioritization of high speed rail projects and competition from lower airfares all contributed to cuts in the number and range of services. There was a huge decline. I mean, people forget that sleeper trains used to be commonplace. They used to be a part of everyday life.

The problem is that they are the most difficult train to make work commercially. But since the pandemic, air travel around Europe is more expensive than it used to be, and due to environmental concerns, an increasing number of people are looking for alternatives to flying. Running what's essentially a hotel on wheels is no small task. This is Great Western Railway's night Riviera service that runs between London Paddington and Cornwall.

So this is a two person room? This is. Yeah, this is a double. Nice. So you've got your towel, your PowerPoint. Yep. You have your own personal soap underneath all your power sockets, and just behind you is your own personal sink. We have a little tray where we can pull down and then, like, they can sit on their bed and have breakfast or they're more than welcome to go down to the first class lounge, of course, an essential feature here, the toilet right next to our accessible double berth bedroom. And no showers on here? No, we don't have showers. We have a shower in the first class lounge, which we would book for you when booking you in.

So now we have the seating carriage. So some people can choose this option instead of a bed? Yes. So this is the cheaper option. And yet they will have a seat, but they also have access to the buffet area as well. This is your sleeper seating area, where people can come down, have a drink from our bar. Do people chat, are they normally. They all chat with each other? Yeah. You wouldn't find it on a day train at all. But they'll come in here in the evening and they're all talking to each other. There's something really romantic, isn't there, about riding on trains through the night, going to bed in one country and waking up in another.

This is Anthony Cools, senior curator at the UK's National Railway Museum. So the first carriages that are set up to have beds in them are late 1830s, early 1840s. It becomes really popular in the 1860s with George Pullman in the USA. Pullman introduces the idea of comfort and style, brings it to the UK in the 1870s and on the continent. In Europe, Georges Nagelmacker in Belgium creates the wagon.

Lis. The carriage behind me is from the wagon ly. The train ran from London down to Dover. Small matter of a bit of water, the English Channel. But the trains were placed onto a ferry, which then took you across the English Channel to France.

When do you start to see the emergence of opening up sleepers to the everyday person? As the 19th century continued, people began to have more disposable income. The whole idea of holidays come in. By the time it was phased out, they're saying, actually, it's not really the premier experience at all. It's. It's a little bit seedy and a bit tired. And of course, that was the end of really long distance sleeper trains from the UK, because you start to get cheap flights coming in, cheap hotels.

From the 1960s onwards, Europe is home to some of the world's most iconic sleeper routes. From the caledonian sleeper through the highlands of Scotland to the famed Orient Express, which once connected the continent from west to east. Excitement is building around the sleeper train market, and a big part of that is the launch of a new service in 2023 by a startup. Travellers, as well as the wider industry will be watching carefully to see if they can make a success of it.

A few years ago, like six, seven years ago, a lot of night trains in western Europe, they were cancelled by the large railways, and that was quite a frustration to us because night train travel is so pleasant and efficient. Chris Engelsman is the co founder of European Sleeper, a new operator aiming to tap into the growing demand for night trains. At the start of the year, the European Union announced it would support ten pilot rail services, both new ones and expansions of existing ones, by breaking down barriers to cross border rail.

So far, the support has been logistical rather than financial. The european sleeper, which had its maiden voyage on 25 May 2023, currently runs between Brussels and Berlin, with a stop in Amsterdam with a total journey time of between ten and 13 hours. In 2021, Chris and his business partner Elmer van Buren, both long time rail industry employees, raised €500,000 from 330 small investors, then launched a crowdfunder that attracted another €2 million. Our crowdfunding round was very successful because also we do think there's a large night train community.

We like the idea that we are community owned and we're not owned by some large investment fund. But we will take the next step, and that would be to own our own night train coaches and have our own look and feel to the coaches and do a refurbishment. And that step would require, of course, larger funds. You've spoken a bit about the difficulties finding the rolling stock for this. That's been a huge challenge for you and for other people that are looking to set up similar services.

The larger railways, they have neglecting the whole product for years. So there's just such a huge lack of proper nitrate rolling stock, and that was the biggest challenge. Do you see it as a bit of a risk that you've taken? These are obviously relatively no frills, I believe there's no Wi Fi, no PowerPoints, limited dining option. Are you sort of believing that people will still support the product, still believe in the power of the sleeper offering? Despite that, it's important to give it a start and not to wait for another two, three, four years for new rolling stock. People want to travel by night train now. They know that the product can be classic.

So how does the european sleeper stack up against other options? Well, if it's going to tempt travellers away from short haul flights across Europe, it needs to compete in two key areas, convenience. And lets say I want to travel from Brussels to Berlin over a long weekend in September. A return trip on the european sleeper starts at €128, around $140, or its around €100 for return flights arriving at similar times in the morning.

If I want a bed in a female only compartment or a private one for me and a travel companion thats more expensive, add ons to my flight will bump up the price too. The carbon emissions of the two journeys could also factor in how you want to travel. And there's also the experience as a whole to weigh up. For many people, including me, train travel has a charm that's difficult to find on flights. From looking out the window, from the dining car, watching the world go by, to arriving directly in a city center instead of a far out airport terminal.

Someone who agrees is Mark Smith, known online as the man in seat 61. His comprehensive online guides have helped many people plan long rail trips. What people tell me now is two things in the same breath. They're fed up with the airport and airline experience, and they want to cut their carbon footprint.

The Austrians OBE, the Austrian State Railways, bought most of Deutsche Bahn's former sleeping cars and many of their Kouchett cars, and took over many of their routes and rebranded it Nightjet and they have a model that works. Nightjet is now in the black. Obey is now the biggest operator of night trains in central Europe, and they've proved that sleeper trains can work. And the problem is on the cost side, it's not on the demand side. OBE Bay is rolling out its next generation nightjet sleeper car this year and is in the process of route expansions. Meanwhile, czech operator Ceska Drahi relaunched routes in late 2022 and has plans for new carriages.

There's also midnight trains, another startup, which plans to launch a sleeper service from Paris in 2025 and is also part of the EU support scheme. The Knight Riviera service, as well as the Caledonian sleeper between London and Scotland, had complete refurbishments over the last five years to attract more passengers, but they both remain loss making for the operators and receive government subsidies.

Imagine you buy an intercity train. It can shuttle up and down maybe four or five journeys a day, carrying 70 people per coach between any two stations on its journey. Now, you take a sleeper train and it requires specialised rolling stock. It's got beds, it's got bed linen, it might have more plumbing, wash basins. It's expensive. It requires couchette attendance and sleeping car attendance. So your staffing costs are high and you're traveling over a longer distance. You're still expected to have competitive fares, competitive with budget airlines.

There have been calls for european nations to support sleepers through cuts to tax on fares and lower track access charges. There are also hopes that train operators will work together to improve connectivity on journeys with separate legs. So are you kind of optimistic that when we're looking ten years from now, 20 years from now, we're going to have a much more developed european sleeper network, potentially with more players, potentially with some of these supply challenges having eased, it's going to be a slow process because it's not easy to run sleeper trains well.

But OBB have already got new sleeper trains being built that will raise quality and make them even more attractive. They've got plans to cautiously expand their network. I'm hoping that european sleeper will be successful and will expand their services. It may just be that as we move through the 21st century with people less willing to fly, as long as it's economically viable, who knows? We could well see a renaissance of the sleeper train, which would be really rather splendid.

Science, Economics, Technology, Sleeper Trains, European Travel, Environmental Concerns, Cnbc International