Case Studies

Contract Support Case Study

Maximizing value from advertising

One of the larger UK rail groups had inherited a variety of commercial advertising contracts many of which were approaching expiry. FDAL were engaged to review these contracts and suggest a strategy for renewal that would maximize the benefits to the group whilst remaining compliant with the several franchise agreements. It was also necessary to recognize that further rail businesses could be won or lost during the term of any new advertising contract. After reviewing all the old contracts, taking various industry soundings and consulting the group and its subsidiaries, a satisfactory new strategy was developed based on a group-wide deal with adequate franchise independence. The opportunity was offered to the marketplace and resulted in a very successful tender which generated approximately double the revenues to the group on a comparable basis. FDAL then provided support during the contractualization process, and ongoing post-contract management, monitoring and problem resolution support.

FDAL have provided similar expertise to other train operators and to London Underground, who recently retendered their own advertising contract, thought to be the world's largest.

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