Business model
DB Long-Distance offers passengers comfortable and environmentally friendly travel within Germany and into neighboring countries. Regularly scheduled daily services with the ICE/Intercity/EC fleet form the backbone of long-distance transport.
The most important target figures are volume sold, passenger satisfaction, punctuality (operational and whole journey), employee satisfaction and operating profit (EBIT). Steering is particularly based on the performance figures of volume produced and seat utilization ratio on trains. Costs largely correlate with the planned volume produced, which is derived from the services offered. Some of the costs, such as for train-paths, station stops and energy, depend on the actual volume produced. Resource assignments of personnel and facilities are aligned with the annual schedule in order to optimize the cost per unit per train kilometer traveled. The key cost drivers here are vehicle, personnel and infrastructure expenses for which reason the business is fixed-cost-intensive. Only a small portion of expenses varies with the load factor.
The most important sources of income for long-distance transport which is operated on a purely commercial basis are revenues from the sale of tickets and BahnCards.
The employees, a modern vehicle fleet and a high-quality infrastructure are crucial for the success of DB Long-Distance. This is why intra-Group infrastructure companies and service providers as well as the vehicle industry are important partners. Furthermore, cooperation with other European train operating companies is of great importance for cross-border connections and night train services.
