BahnCard 50 - 2015-16
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BahnCard (German ''Bahn'' – Rail) is a discount subscription programme offered by
Deutsche Bahn (, ; abbreviated as DB or DB AG ) is the national railway company of Germany, and a state-owned enterprise under the control of the German government. Headquartered in the Bahntower in Berlin, it is a joint-stock company ( AG). DB was fou ...
(DB), the German national
railway Rail transport (also known as train transport) is a means of transport using wheeled vehicles running in railway track, tracks, which usually consist of two parallel steel railway track, rails. Rail transport is one of the two primary means of ...
company. Unlike airline loyalty programs, but similarly to the UK Railcard, the BahnCard entitles the passenger to a discount price and must be purchased prior to travel. The BahnCard is offered in a non-business and a business version called ''BahnCard Business''. Non-business BahnCard contracts are automatically renewed each year, unless they are cancelled with sufficient notice. Three variants of BahnCard are sold by Deutsche Bahn: The BahnCard 25, the BahnCard 50, and the BahnCard 100. The first two variants allow passengers to get 25% and 50% discount respectively on standard long-distance rail fares, while the Mobility BahnCard 100 is a type of annual ticket that allows free unlimited travel on most of the German railway network for a
fixed price A fixed price is a price designated for a good or a service that is neither subject to bargaining nor bartering. The price may be fixed since the seller has placed it, or given that the price is managed by the authorities under price regulati ...
. The (non-business) BahnCard 25/50 are valid for one year and can only be purchased by subscription. If they are not canceled no later than six weeks before the expiry date, their term is automatically extended by another year. BahnCard Business 25/50 are also valid for one year but require no cancellation. Unlike the personal BahnCard, BahnCard Business can be combined with the discount that is granted to large-volume business customers. In 2007 there were 4.01 million BahnCard holders in Germany (≈5% of Germany's population). More than half of the passenger
revenue In accounting, revenue is the total amount of income generated by the sale of product (business), goods and services related to the primary operations of a business. Commercial revenue may also be referred to as sales or as turnover. Some compan ...
of
DB Fernverkehr DB Fernverkehr AG (, "DB Long-Distance Traffic") is a semi-independent division of Deutsche Bahn that operates long-distance passenger trains in Germany. It was founded in 1999 in the second stage of the privatisation of Deutsche Bahn, under the ...
(long-distance) comes from tickets sold to BahnCard holders. Apart from entitling the holder to discounts, the BahnCard also functions as an ID card for the validation of online tickets and mobile phone tickets and for purchasing tickets from vending machines. BahnCard holders can also call a discounted hotline printed on the cards, and an optional travel insurance can be included.


History


Predecessors: 1955-1992

A predecessor of the present-day BahnCard was introduced in 1955 by Franz-Josef Wuermeling, the then Minister for Family Affairs. Discounted train tickets became available for families with many children, and the eligibility pass became known as "''The Wuermeling''". This pass was offered until 1999. In 1975 a Senior rail pass was introduced by the ''Bundesbahn'', valid for men older than 65 years and women older than 60 years, and entitling them to a discount of 50% on long-distance train tickets. Later similar passes were introduced for minors and families, valid for journeys longer than (reduced to later). In the ''Deutsche Reichsbahn (DR)'', the
East German East Germany, officially known as the German Democratic Republic (GDR), was a country in Central Europe from its formation on 7 October 1949 until its reunification with West Germany (FRG) on 3 October 1990. Until 1989, it was generally vie ...
rail company, which was later merged with the ''Bundesbahn'', normal student ID cards entitled students to a discount of 50% on all journeys and 75% if the journey was between home and university.


Introduction and growth: 1992-2002

The main motivation for introducing the BahnCard was to increase
competitiveness Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individ ...
against the
automobile A car, or an automobile, is a motor vehicle with wheels. Most definitions of cars state that they run primarily on roads, Car seat, seat one to eight people, have four wheels, and mainly transport private transport#Personal transport, peopl ...
. Prior to the BahnCard, Deutsche Bahn priced a trip between any two points related to the distance travelled; this pricing structure proved uncompetitive with driving. The card allowed a two-dimensional pricing schedule, which consists of card price (a fixed cost), and ticket price (a
variable cost Variable costs are costs that change as the quantity of the good or service that a business produces changes.Garrison, Noreen, Brewer. Ch 2 - Managerial Accounting and Costs Concepts, pp 48 Variable costs are the sum of marginal costs over all u ...
). Once a passenger has bought a card, its price becomes a
sunk cost In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with '' prospective costs'', which are future costs that may be a ...
and this makes the train more like the automobile, which is also characterised by high fixed costs. The decision whether to take a car or train for a particular journey depends mostly on the marginal price per kilometer, not on the total cost. The effect of the BahnCard was to shift the marginal cost of the train journey below that of the car journey for many customers. The BahnCard itself was introduced on 1 October 1992. Initially the card was available for second class travel and 50% discount only, but at Christmas 1992, the ''BahnCard First'' for the first class was launched along with gift vouchers for the new product. By the end of the year, it was bought by 650,000 clients. A major advertising campaign was started by the (then called) ''Bundesbahn'', where the card was marketed under the slogan ''travel for a year for half the price''. The TV advertising campaign for the new product won several awards. The introduction of the BahnCard coincided with the launch of the high-speed InterCityExpress trains, a luxury service that gained wider customer acceptance than previous intercity trains. One million BahnCards were sold by 20 January 1993. In July 1995, a BahnCard with credit card functionality was introduced in cooperation with
Citibank Citibank, N.A. ("N. A." stands for "National bank (United States), National Association"; stylized as citibank) is the primary U.S. banking subsidiary of Citigroup, a financial services multinational corporation, multinational corporation. Ci ...
. Two new versions were now offered in addition to the original card, a BahnCard with Visa payment and credit card function a BahnCard with Visa Electron payment (a rechargeable debit card). The credit card Bahncards were valid for a period of two years, and the regular card still for a period of one year. The validity of the cards was altered from the exact day to the end of a month. The new cards now also included a photograph of the customer. The DM 50 (€25) fee for replacement cards (in case of loss) was abolished, and a dining car voucher worth €5 was included with new cards. The customer data and photographs were processed in the US, which raised
privacy Privacy (, ) is the ability of an individual or group to seclude themselves or information about themselves, and thereby express themselves selectively. The domain of privacy partially overlaps with security, which can include the concepts of a ...
concerns with some groups. This campaign, called "better BahnCard", was criticised by the newspaper ''
Die Zeit (, ) is a German national weekly newspaper published in Hamburg in Germany. The newspaper is generally considered to be among the German newspapers of record and is known for its long and extensive articles. History The first edition of was ...
'' in June 1996, which reported that customers were tricked into buying the credit card version against their will and that organisational errors lead to delays of several months and the delivery of incorrect cards. In June 1996 the magazine ''Focus'' reported that "CitiBank must improve BahnCards". Despite a high-profile marketing campaign, customers largely rejected the "better BahnCard"; only 390,000 were sold by May 1996 instead of the projected 1.5 million. The partnership with CitiBank was terminated on 31 March 1999. In 1995, the
Rhein-Main-Verkehrsverbund The Rhein-Main-Verkehrsverbund (RMV) is a List of German transport associations, transport association that covers the Public transport, public transport network of the Frankfurt Rhine-Main, Frankfurt Rhine-Main area in Germany. Its head offi ...
was the first local
public transport Public transport (also known as public transit, mass transit, or simply transit) are forms of transport available to the general public. It typically uses a fixed schedule, route and charges a fixed fare. There is no rigid definition of whic ...
network outside Deutsche Bahn to join the BahnCard system. A 40% discount on all local train, tram and bus tickets was offered to BahnCard holders, and included in promotional tickets such as the Guten-Abend-Ticket. Long distance DB tickets with Frankfurt as a destination also allowed a single free connecting journey for non-BahnCard customers. In exchange, Rhein-Main-Verkehrsverbund customers were able to use Deutsche Bahn Interregio (regional) trains for free. Commuters who held season tickets of the Rhein-Main-Verkehrsverbund could now also use Intercity, Eurocity, and InterCityExpress trains in the Rhein-Main area for a small surcharge.ZUG (in German) (4). Deutsche Bahn: 10. 1995.


New tariff model and diversification: 2002-present

Towards the end of 2002, Deutsche Bahn undertook a major reform of its pricing strategy. The linear pricing model (where ticket prices were fixed and proportional to distance travelled) that had existed for over a century was partly replaced with a new model. Though the old fare system for ''standard tickets'' was kept largely unchanged, a degree of
yield management Yield management (YM) is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats, hotel room reservat ...
was introduced for ''discounted tickets''. As a part of this reform the discount offered to Bahncard holders was reduced from 50% to 25%. The justification was that the Bahncard discount was now valid ''on top'' of the new saver fares (called ''Plan-und-Spar'') that offered discounts of up to 40% on the standard fares but were only available under certain conditions (non-exchangeable; booking more than 3 days in advance; return journey required; "weekend rule"; limited number of seats). This reform proved highly unpopular with customers. After passenger protests and declining passenger numbers, the pricing model was modified again in August 2003. The original 50% discount Bahncard was reintroduced alongside the 25% Bahncard, however its price was increased from €120 to €200. On 14 December 2003 the ''City ticket'' (see below) was launched in 44 cities in cooperation with the ''Verband Deutscher Verkehrsunternehmen'' (Union of German Transport Operators),
Deutsche Bahn (, ; abbreviated as DB or DB AG ) is the national railway company of Germany, and a state-owned enterprise under the control of the German government. Headquartered in the Bahntower in Berlin, it is a joint-stock company ( AG). DB was fou ...
, and the individual local transport companies. On 12 December 2004, another 13 cities joined the scheme; on 11 December 2005 (coinciding with the new DB timetable) another 19, on 1 April 2007 another 16, and on 10 December 2007 yet 7 more. 100 million rail tickets with "City-ticket" function were sold by the beginning of 2008.''Neue Rekorde bei der Bahn''. In: ''mobil (magazine)''. April 2008, p. 55. Between 2004 and 2008 the number of BahnCard holders grew by one million to 4.01 million,Deutsche Bahn. Menschen bewegen – Welten verbinden, Berlin 2008, p. 31 (in German) the highest in the history of the card. In March 2024, DB announced to no longer issue BahnCard 25 and 50 as an actual plastic card from July 2024, making the use of its corresponding smartphone apps mandatory to access the virtual variant.


Current tariff structure


BahnCard 25

The BahnCard 25 entitles the passenger to 25% discounts on top of all fares. It also applies if the passenger travels with a group of people. BahnCard 100 customers receive a free Bahncard 25 for another relative. Families can purchase more BahnCard 25 for household members for about 1/5 of the price. Minors can purchase the BahnCard 25 for €7.90 that is valid for one year. Since 2010 there has been a reduced Bahncard 25 for people aged 65 and over. It costs 40.90 euros, for 1st class 81.90 euros. For customers under 27, the reduced offer is called My BahnCard 25 and costs 39.90 euros in 2nd class or 81.90 euros in 1st class.


BahnCard 50

The BahnCard 50 enables a 50% discount on standard walk-on fares and 25% discount on fares already discounted. In 2006 there were 1.8 million BahnCard 50 in circulation, and BahnCard 50 passengers undertake an average of 50 train journeys a year, according to Deutsche Bahn.


BahnCard 100

The BahnCard 100 allows unlimited travel on the entire Deutsche Bahn network and 118 local
public transport Public transport (also known as public transit, mass transit, or simply transit) are forms of transport available to the general public. It typically uses a fixed schedule, route and charges a fixed fare. There is no rigid definition of whic ...
networks across Germany; for this reason "+ City" is printed on the BahnCard 100. The card itself is valid as a ticket. For journeys across the country's border or Night lines a surcharge is required. Since May 2023, the BahnCard 100 includes the
Deutschlandticket The (), often shorted to the D-Ticket, is a subscription public transport ticket for all local public transport, valid in the whole of Germany. The Scholz cabinet introduced it in May 2023 as a permanent successor to the 9-Euro-Ticket which ha ...
, and thereby allows the user to use the most local public transport networks across Germany. The BahnCard 100 is aimed at business travellers and frequent travelers who make more than 30 long-distance journeys a year. The Bahncard 100 automatically qualifies the passenger for Deutsche Bahn's VIP program called ''bahn.comfort''. Card holders enjoy a number of privileges like free baggage collection from home and access to VIP lounges at train stations. The
car sharing Carsharing or car sharing (AU, NZ, CA, TH, & US) or car clubs (UK) is a model of car rental where people rent cars for short periods of time, often by the hour. It differs from traditional car rental in that the owners of the cars are often pr ...
service offered by Deutsche Bahn can be used at discounted rates by card holders. An electronic key based on
RFID Radio-frequency identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects. An RFID system consists of a tiny radio transponder called a tag, a radio receiver, and a transmitter. When tri ...
technology integrated into the card allows to unlock carsharing vehicles parked near train stations. Since the RFID chip is automatically included in all cards. Since a photo of the card holder is shown on the card, it has been criticised for violating
privacy Privacy (, ) is the ability of an individual or group to seclude themselves or information about themselves, and thereby express themselves selectively. The domain of privacy partially overlaps with security, which can include the concepts of a ...
rights, so Deutsche Bahn received the Big Brother Award in 2007 as a result.


BahnCard and Bus operators

Many bus companies in Germany, including most of the regional bus routes operated by DB, accept the BahnCard if not traveling fully within the area of a Passenger Transport Executive. The same discount of 25% applies both to the BahnCard 25 and the BahnCard 50, and the Mobility BahnCard 100 is valid as a full ticket. The Deutsche Bahn-owned bus operators in Sachsen and
Brandenburg Brandenburg, officially the State of Brandenburg, is a States of Germany, state in northeastern Germany. Brandenburg borders Poland and the states of Berlin, Mecklenburg-Vorpommern, Lower Saxony, Saxony-Anhalt, and Saxony. It is the List of Ger ...
do not accept the BahnCard.


Railplus

Since December 9, 2007, the "Railplus" function was automatically included in the price of the Bahncard 25/50 and had a RailPlus logo on the back of the card This meant that passengers could purchase international access cards to 24 European countries with a 15% discount, regardless of whether the journey begins or passes through the RailPlus card's country of origin. Before December 2007, this option was only available for trips to Austria and Switzerland as part of the “TEE Rail Alliance”. Railplus was discontinued at the end of 2023.https://aviation.direct/auslandsrabatt-bei-bahnreisen-railplus-wird-eingestellt


References


External links

* {{DEFAULTSORT:Bahncard Fare collection systems in Germany Customer loyalty programs Deutsche Bahn Passenger rail transport in Germany