The low-cost carrier model is a successful business model that has been adopted by the airline industry in the late 1990s. Recently, the low-cost movement has also started to transform the coach industry. Could rail be next? Operators in France and Belgium have launched low-cost carrier models, and an unconventional player has entered the market in Germany. The article examines the current status quo and outlines the low-cost carrier model as it is known in the aviation industry, before inspecting current low-cost models and evaluating whether spread is likely. With increasing mobility demand and evolving mobility needs, the transportation industry has drastically evolved from a single point-A-point-B routing system to interconnected networks encompassing road, rail and airways. Long-distance (cross-regional) railway networks have especially flourished under this trend. As technological advancements allowed higher speeds and populations grew increasingly urban, long-distance passenger rail travel became an attractive mode of transport to invest in during the second half of the 20th century. Today, governments are attracted to the high capacity and safety features, which can reduce traffic congestion, limit the strain on the environment and promote urban sprawl. Simultaneously, consumers (especially commuters) are looking for affordable travel options. Therefore, it is likely that we will see diversification of business models in the rail industry in the near future.
