Express delivery
CHRIS CRAUFORD, Head of Commercial at Heathrow Express, tells PAUL STEPHEN how the open access operator plans to meet the challenges posed by serving one of the world’s busiest airports, the arrival of a new fleet, and the coming of Crossrail
On June 23 2018, Heathrow Express turned 20 years old. In those two decades of service, the open access operator has carried more than 100 million passengers on the 15-minute nonstop journey it continues to provide between London Paddington and Heathrow Terminals 2 & 3 (21 minutes to Terminal 5).
During that time, HEx has also carved out an enviable reputation as a consistently top performer in customer satisfaction. Earlier this year the operator was once again named (joint) first in the Transport Focus National Rail Passenger Survey (spring 2018).
However, great change is afoot for HEx, following a decision in March to transfer responsibility for day-to-day operations and fleet maintenance on the route to Great Western Railway (GWR), under a ten-year agreement that commenced on November 1.
Under the terms of the management contract, GWR will withdraw the 14 four-car and five-car Class 332 trainsets that have been in operation with HEx since 1998, and introduce in their place a new fleet of 12 recently delivered four-car Class 387s by the end of 2019.
The ‘387s’ allocated to HEx operations will be maintained at GWR’s depot in Reading, and will be specially branded and modified to provide First Class accommodation, highspeed WiFi, additional luggage racks, and on-board entertainment.
The key advantage to this agreement is that no new depot will now need to be built to replace the existing HEx facility at Old Oak Common, which must be vacated by the end of 2019 as part of the HS2 project.
It also guarantees the future of the flagship service and track access rights for HEx until at least 2028, at a time of intensifying competition from other operators.
This is because Heathrow Airport is scheduled to gain an additional six trains per hour by the end of 2019, once the western section of the Elizabeth Line (Crossrail) opens.
Added to the four HEx and 12 Piccadilly Line London Underground services that already call there, overall frequency will rise to 22tph with a train departing central London for Heathrow on average every two-and-a-half minutes.
Further competition may also arise if any of the current privately financed proposals to provide direct southern access by rail to the airport are given the go-ahead by government.
Although no longer responsible for operations, HEx retains full control of the operator’s other functions such as marketing, ticketing and revenue, and managing stations at the airport.
It will therefore fall to its senior leadership team to manage this increased competition, and to protect market share in the face of the enhanced connectivity, increased frequency and cheaper fares that the Elizabeth Line will offer.
To help in this task, the leadership team has been bolstered by a number of recent appointments, including Sophie Chapman, who became Head of Operations in September following 22 years with Eurostar.
Meanwhile, on November 5, it was announced that Managing Director Fraser Brown is to join Heathrow Airport as Retail Director, after four years at the helm of HEx. His replacement Les Freer will move the other way, having most recently been Heathrow Airport’s Head of Ground Handling, Strategy and Licensing.
Another new arrival is Chris Crauford, who joined HEx in August as Head of Commercial, having previously served as Head of Commercial Planning for the airport.
Falling within Crauford’s remit is responsibility for HEx’s digital platforms, marketing and communications functions, sales teams, and the operator’s B2B ( business to business) sales and distribution teams.
He must also work closely with HEx’s pricing team and with GWR to ensure the new fleet, pricing structure and customer service proposition remain as attractive as possible to those travelling between the airport and central London.
He tells RAIL: “My main objective is to grow revenue and passenger numbers, and to set things up for the next 24 months as we move towards becoming a full train operating company while outsourcing much of the operations.
“In March, the four-way deal was announced [with GWR, Heathrow Airport and DfT], which is fantastic for us and gives us longevity and security until 2028. We’ll have a small team maintaining that operational relationship with GWR, which enables us and the bulk of HEx to really focus now on exceeding the high standard of service we already provide.
“Currently we run up to 150 services and carry an average of 17,000 passengers a day as the fastest rail link from London to Heathrow. But we’d like to see that increase
We’ve committed to stringent targets as an airport to get 50% of passengers onto public transport, so we need to get more people in and out by rail, not less. Chris Crauford, Head of Commercial, Heathrow Express
even further.”
According to Crauford, much of that growth will be secured by targeting the B2B market, where tickets are sold to passengers via third parties such as travel agencies and online booking platforms.
Only 10% of all HEx farebox revenue currently comes from this source, with the vast majority (70%) still raised by ‘turn-up-and-go’ passenger sales at stations and the remaining 20% through direct sales on HEx’s website.
HEx is also due to launch a new website and App in the first half of 2019. This will be multilingual, have a quick booking feature for registered customers, and a new and easier-touse help centre that Crauford says will make it easier for HEx to manage fares.
He adds: “The key thing to unlocking growth is our new App, website and ticketing system. It comes in five different languages and allows us to be more dynamic in our pricing, including offering greater value fares in off-peak hours.
“It also helps cement relationships with important commercial partners, including those in aviation, corporate travel and online booking sectors, because we’d like to sell more of our tickets further upstream. I’d like to switch around the current ratio of sales [from turn-up-and-go to B2B], but to do that we need to speak their language.”
Despite the anticipated opening of the Elizabeth Line next year, Crauford is predicting a bright future for all operators serving the airport - owing to predictions for rapid expansion in air travel from what is already the UK’s largest airport (and the seventh busiest in the world).
Total annual air passenger volumes are expected to rise from the current level of 78 million to 130 million by 2030. Meanwhile, the airport’s owner (Heathrow Airport Holdings) has pledged to increase the percentage of surface passengers and staff using public transport to reach the airport - from 40% to 50% over the same time period.
Key to the airport’s expansion plans is the building of a third runway, which was controversially approved by Government in October 2016. A strict condition for planning permission is that the increased capacity for air movements provided by the runway should not lead to any further rise in the number of road journeys being made by air passengers, or send the airport’s public transport targets off course. HEx looks set to be a key player in ensuring that Heathrow Airport adheres to these commitments, by continuing to offer the fastest service from central London.
Says Crauford: “We’d be silly to say we won’t see any abstraction of passengers [by Elizabeth Line services], but from our point of view it is important we offer our passengers choice. We’ve committed to stringent targets as an airport to get 50% of passengers onto public transport, so we need to get more people in and out by rail, not less.
“Heathrow is growing, too, and by the time the third runway is built in 2026 passenger numbers will have almost doubled. With the airport growing at this phenomenal rate it then comes down to choice, and we look forward to working with Crossrail on achieving Heathrow’s commitment to modal shift and with GWR to grow our own numbers.
“We’ll be here until at least 2028, the airport is on course to grow rapidly, and we look forward to playing our part in delivering that.”