Canadian Rail System Targets Cross-Border Biz Travel

Via Rail, Canada's national railroad, is starting to push its product beyond the Canadian borders.

"The Windsor, Ontario, to Toronto route is something we're just beginning to promote to the corporate market," said Beverly LeBlanc, Via Rail manager of sales and promotions for Southwestern Ontario. "We are going after the border markets because we know there is traffic between Detroit and Toronto. Depending on where you're located in Michigan, it can be as easy as crossing over to Windsor and taking advantage of the savings along with the level of service. As well, companies located close to the Windsor/Detroit border can easily take advantage of Via Rail's corporate travel program."

Noting the railroad is trying to hammer out deals with a number of Michigan-based companies, LeBlanc said train travel between Windsor and Toronto could be appealing to business travelers for a number of reasons. In addition to value as a result of the ailing Canadian dollar, currently worth about US$0.63, "business class travelers can enjoy the amenities of full business class service at very good prices."

Among the amenities offered in Via 1, the railroad's business class service, are a three-course meal, free liquor, laptop plug-ins at each seat and use of a pre-boarding lounge at most major train stations.

Fares are considerably lower than unrestricted economy class airline tickets. For example, a return fare between Windsor and Toronto in Via's business class car costs US$159, including taxes, with no restrictions. A full-fare economy ticket between Detroit and Toronto on Air Canada is US$891.

For companies who spend more than US$9,450 a year, Via will negotiate a preferred supplier agreement, giving an additional 5 percent discount off any Via fare, including advance purchase tickets for economy class that have discounts of 25 percent to 35 percent.

Via also is going after small business. Although plans are not finalized, companies that buy a pack of six prepaid Via 1 vouchers for future travel between selected major cities will receive a 10 percent discount, while the purchase of 10 economy class vouchers will realize a 40 percent savings.

Certainly, whether they are Canadian or U.S. business travelers, Via has stepped up its efforts in recent years to bring in corporate business. "Attracting more business clients is most profitable for us," LeBlanc said. "They travel more frequently and are less cost-conscious than leisure passengers."

Via's efforts are paying off in spades. LeBlanc said the company presently has more than 150 corporate clients, a 40 percent increase over last year.

Indicative of Via's commitment to the business traveler, is the current refurbishment program of 24 Via 1 cars. In addition to a new logo to be included in various elements of the service, including glassware, the cars are being renovated with new carpeting, drapes and wall coverings, as well as seats in teal, burgundy and gold tones. The new seats provide additional lumbar and neck support. Additionally, Via provides what it called "conference quads" in each car. These are four-seat tables that can be booked in advance for small meetings.

The rail line also is expanding its rolling stock with the gradual addition beginning later this year of 21 new high-speed locomotives and 139 new passenger cars that will be used throughout the country, including the Windsor-Quebec City corridor. The addition of new cars will expand the railroad's fleet by one-third.

Although train travel in Canada has been enjoying a rebirth in recent years, especially on short-haul routes, LeBlanc said the Sept. 11 terrorist attacks increased awareness that Via may offer a viable alternative to business travelers.

"What initially happened was it encouraged people to try us," LeBlanc said, adding that many companies that tried the service have become repeat customers.

Diane Fabiani, an account manager for Carlson Wagonlit Travel in Ottawa, who represents a major corporate account, said the trend of increased train travel by executives will continue.

"It's cost-effective and in a lot of cases it's time-effective, given that with air travel we have advance checkin requirements, security and travel to the airport, which is normally situated in a non-central core of any city," Fabiani said.

Business travelers also spend additional time at the arriving city getting in to the city core from the airport, making train travel "a positive experience because they can get their two to three hours of work done, have an enjoyable meeting or meal, relax in relative comfort and with minimal stress," Fabiani added.

Taking into account total travel time, the train frequently is comparable or not significantly longer than air travel, and allows the business traveler more uninterrupted time in one place.