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Trains trouncing planes in domestic travel - why this is great news for agents

What do you do when you want to travel interstate but soaring airfares are holding you back? For a growing number of Australians, it’s to hit the railroads. 

What do you do when you want to travel interstate but soaring airfares are holding you back? For a growing number of Australians, it’s to hit the railroads. 

With domestic airfares going through the roof, more and more Aussies are turning to train travel to get from A to B. 

While train travel will obviously add to the duration of a trip when compared to flying – and even driving, in some cases – for many holidaymakers the difference in price between the two forms of travel makes the decision a bit of a no-brainer. 

The XPT between Sydney and Melbourne.
The XPT between Sydney and Melbourne.

According to The Guardian, the cheapest available domestic airfares are above prices not seen since March 2004, with return economy fares between Sydney and Melbourne – prior to Covid-19, one of the busiest air routes in the world – in December averaging $500 on low-cost carriers and exceeding $1,000 on Qantas. 

By comparison, a one-way adult economy ticket on the NSW Government-operated XPT train between Sydney and Melbourne costs $78, while a first class saver ticket is currently going for around $93. Prices between Sydney and Brisbane work out to be around the same. 

Due to the high domestic fares, which have been brought about by lower supply (around three quarters of pre-pandemic levels), staff shortages, illness, and higher fuel prices, patronage of cheaper overnight trains between Sydney, Melbourne and Brisbane has skyrocketed in recent months, the Guardian reports. 

According to a Transport for NSW spokesperson, figures during October are “more than double” that of February – when sales roughly returned to pre-pandemic levels – and are forecast to rise further still over the summer holiday period. 

The legendary Indian Pacific.
The legendary Indian Pacific.

Luxury rail also booming

Leading Australian rail operator Journey Beyond told Karryon it is seeing “unprecedented demand, both internationally and domestically”. 

“Our multi-day rail journeys – The Ghan, Indian Pacific and Great Southern – are continuing to be immensely popular with domestic travellers, which we attribute partly to the high cost of international airfares contributing to the continued desire to experience travel within Australia,” Journey Beyond General Manager Sales Alicia Triggs said.

“We’re seeing the same story play out domestically with The Overland, which runs between Melbourne and Adelaide. 

“We’ve seen a significant boost in numbers over the past few months and guest feedback is suggesting that cost is a factor.”

And for travel advisors, this means more earning capacity. 

“There are clear opportunities here for agents – agents earn commission on these rail products, unlike domestic airfares,” Triggs said. 

“There’s scope for including rail elements in packaging, and when it comes to The Overland, promoting the concept of slow travel – turning the journey into part of the experience.”