Spotlight on SNCF Voyageurs' business model

Is the train a public service?

That depends on which train we're talking about and who finances it. 
SNCF Voyageurs operates 2 types of trains.

On the one hand: trains operated under a public service delegation agreement

• Transilien in Île-de-France
• TER in 11 regions
• INTERCITÉS throughout France.

In France, regional trains and trains d'équilibre du territoire carry 90% of rail passengers.

For Transilien and TER, 12 regional councils each decide on the content of their transport offer. As part of the opening up to competition, since 2020 they have been able to choose the railway companies to which they entrust the operation of these trains, through public calls for tender.

The regions choose :

• ticket prices
• timetables
• the number of trains running
• but also which trains they finance

The regions finance this public service to the tune of 75% on average. This means that passengers pay 25% of the cost through their ticket or season ticket.

It's the same principle for the INTERCITÉS regional balance trains : the Ministry of Transport defines and finances this service.

On the other hand... High-Speed Trains.

These are :

• OUIGO
• TGV INOUI,
• Eurostar, Lyria and other European TGV services.

These trains operate without any public subsidy: 100% of operating costs are financed by passengers.

Any rail company can offer a competing commercial service, choosing its offer, type of equipment, prices and destinations served.

How much does the TGV cost?

It's true, running a TGV is expensive. On average, the cost of these trains breaks down as follows:

• 5% for the energy used to run the train
• 10% for VAT
• 20% for staff salaries
• 25% for train maintenance
• 40% for tolls to use the rail network (for any rail company).

The TGV also makes money.

These profits are primarily used to compensate for the TGV INOUI routes, which are loss-making: of the 230 destinations, some are profitable, but others are not. SNCF Voyageurs must ensure this balance in the service of the regions, made more difficult with the arrival of competitors on the only profitable routes.

And SNCF Voyageurs must ensure a balance at the service of the regions.

The remaining profits are used for 2 purposes:

• Buy new TGVs and invest in workshops.
• To be paid back to the SNCF group to invest in France's rail network and thus improve regularity and quality for passengers.

Have TGV prices gone up too?

Yes, but only half as much as the rest!

The price of high-speed train tickets has risen by 8% since 2019, while inflation has been 16% over the same period.

Fare increases for TGV INOUI and OUIGO are still below those for other types of transport (aviation, fuel).

And then... The TGV is a range of offers.

There are higher prices when demand is stronger, but there are also lower prices and offers like OUIGO.

And SNCF Voyageurs has never raised its low fares for over 5 years.

As for public service trains (Transilien, TER, INTERCITÉS), it's the Regions or the State that set their prices and how they evolve.