Turnover indexation gap
Group risk
Turnover indexation gap
The risk of the indexation gap widening from 2025 onwards, due to NS not being allowed/able to raise fares in line with inflation and not being compensated for this, or only in part.
Development 2023
Sales developed better than expected in 2023, partly due to an overall increase in travel. However, passenger kilometres are still lower than before the COVID-19 pandemic. One major cause is that it has become common practice for many people to work from home at least one day a week. In addition, many people's purchasing power has decreased, leading them to travel less.
To remain financially sound as a company and continue our ability to make long-term investments, we need to keep our fares in line with cost increases and reduce our costs where possible (see also risk 3 regarding costs).
From a societal point of view, we very well understand there is political pressure to limit the increase of train fares. After all, we want to keep public transport affordable for everyone. In business terms, however, this is a risk. This is why the government will need to make a financial contribution if train fares are allowed to follow inflation only to a limited extent. The government has made this contribution available for 2024. However, it is uncertain whether it will continue to do so for the years beyond.
Control measures
We conduct research on an ongoing basis to improve our insight into travel behaviour (customer behaviour), draw up passenger forecasts (customer demand) and understand customer opinion (customer value). These insights help us increase the added value for our customers.
With the introduction of NS Voordeel, we are making our product more affordable and are also trying to attract additional off-peak passengers.
NS is consulting with the Ministry of Infrastructure and Water Management on the dilemma of keeping train travel affordable, on the one hand, and retaining our financial health, on the other, in order to continue to serve our passengers in the future and make the necessary investments to keep the Netherlands mobile.