2007 Reference Document for Groupe Eurotunnel SA PDF file size

6. DESCRIPTION OF EUROTUNNEL GROUP’S ACTIVITIESstable, which allowed the Short Straits passenger car market to increase by 7% in 2007. After several years ofdecline, the market has stabilised and small growth is expected over the next few years.This stabilisation is attributable to a number of factors:the withdrawal of passenger services on other cross-Channel links, which led to a transfer of traffic to theShort Straits;the adoption of dynamic pricing by some operators, in particular Eurotunnel Group; andthe end of the continuing reduction in air fares.However, the number of coaches transported on the Short Straits market continued to decline over the period.Eurotunnel Group market share on the Short StraitsEurotunnel Group estimates that its shares of the car and coach passenger markets on the Short Straits link wereas follows:2007 2006 2005Share of Short Share of Short Share of ShortStraits market Straits market Straits marketVehicles (%) Vehicles (%) Vehicles (%)Cars (1) 2,141,573 43.3 2,021,543 43.5 2,047,166 44.8Coaches (2) 65,331 38.3 67,201 38.9 77,267 42.4(1)Number of vehicles transported by Eurotunnel Group. The market share percentages are calculated by converting the number of vehiclestransported into Car Equivalent Units (‘‘CEU’’) and determining Eurotunnel Group’s share of total CEU transported on the Short Straits link asreported by IRN Services Ltd.(2)Number of vehicles transported by Eurotunnel Group. The market share percentages are calculated by determining Eurotunnel Group’s share ofthe total number of coaches transported on the Short Straits link as reported by IRN Services Ltd.Eurotunnel Group’s share of the passenger car market on the Short Straits, in numbers of cars transported, was43.5% in 2006 compared to 43% in 2007.b) EurostarMarket growthThe market for Eurostar services comprises business and leisure passengers travelling between theUnited Kingdom and continental Europe. The market is diverse and includes passengers travelling only betweenLondon and Paris or London and Brussels and passengers travelling between other points in the United Kingdomand France, Belgium, Holland and Germany. Eurostar connects London with the centres of Paris and Brussels andcompetes with air travel service providers on travel time, frequency, comfort and price. Eurostar also operates adirect service to Disneyland Paris, a ski train service to Bourg-Saint-Maurice and a summer service to Avignon inSouthern France.31