2017 Integrated Report – Departure into a new era

Business model

DB Long-Distance offers customers comfortable and environmentally friendly travel within Germany and into neighboring countries. Regular scheduled daily services with the ICE/IC/EC fleet form the backbone of long-distance transport. Offerings are being supplemented by island services to Sylt and Wangerooge. Long-distance bus services (IC Bus) provide an extension to the rail transport offering for domestic and international travel.

The important key performance figures are volume sold, volume produced and the load factor. The cost side largely correlates with the volume produced, which is derived from the schedule. Personnel and facility resource management is determined on the basis of the annual train schedule to optimize the unit cost per train kilometer traveled. The key drivers are personnel, maintenance and infrastructure costs, the latter being very fixed-cost intensive. Only a small portion of costs varies with train capacity utilization.

The most important sources of income for commercially operated long-distance transport are revenues from the sale of tickets and BahnCards. Our employees, a modern vehicle fleet and a high-quality infrastructure are key re­sourc­­es. This is why the Group-internal infrastructure companies, service providers and the vehicle industry are important partners. Furthermore, the cooperation with railways in countries bordering Germany is very important for cross-border connections.