The Jungfraujoch – Top of Europe business segment is the strategic hub of the company. The main attraction is the highest railway station in Europe. It is located at 3,454 metres above sea level, within the Swiss Alpine Jungfrau-Aletsch UNESCO World Heritage site. Visitors can experience a high alpine world amidst imposing mountain peaks, glaciers and snow. The cogwheel railway from Lauterbrunnen and Grindelwald to the high alpine meeting point of Kleine Scheidegg and continues through the massifs of the Eiger (3,970 m above sea level) and Mönch (4,108 m above sea level) is internationally positioned among the most important tourist attractions in Switzerland. The International High Alpine Jungfraujoch and Gornergrat Research Station Foundation contributes to the attractiveness of the Jungfraujoch – Top of Europe through its presence and research results. The importance of the segment can be measured by the transport income of CHF 111.8 million. Sales are distributed among Jungfraubahn AG and Wengernalpbahn AG (information on the subsidiaries can be found in the financial report).

Jungfraujoch – Top of Europe is a comprehensive natural experience that is marketed as a comprehensive offer from a single source. With some supplementary services, the offer is only based on services provided by partners (e.g. tours in the area of alpinism, snow fun, the Mönchsjochhütte). After the complete integration of catering on the Kleine Scheidegg at the end of 2017, catering on the Jungfraujoch and the Eiger Glacier will be integrated at the end of 2019. The Jungfraujoch – Top of Europe is open 365 days a year. To ensure quality, the number of visitors is limited to 5,000 guests per day (± 10%). A seat reservation system ensures travel comfort.

The financial year 2018 was very successful. For the third time in the history of the Jungfrau Railway, more than one million guests visited the Jungfraujoch – Top of Europe. This resulted in transport income of CHF 111.8 million with an average yield of 1.8%. Total sales grew for the first time to over CHF 200 million. Excursions to the Jungfraujoch – Top of Europe continued to benefit from the diversification of the markets. Despite the increasing number of individual guests, the segment with tour operators is still particularly important.

 The international tourism market has been growing steadily in recent years. UNWTO, the tourism organisation of the UN, expects a continuation of this trend. Jungfrau Railway can make targeted use of this potential. The market development in Asia continues to be a high priority in order to maintain the high level of 2018. Growth is subject to certain limits. Capacity bottlenecks in the summer months and the long travel times that contradict the trend towards acceleration pose particular challenges for business development. In response to these circumstances, the utilisation of the off-season (“12 months of high season”) is being promoted and the V-Cableway is being realised, which significantly shortens the travel times to the Jungfraujoch – Top of Europe. The aim is to provide guests with individually tailored and flexible travel behaviour. This will have a positive effect on the distribution of frequencies throughout the day.

The 2019 financial year began satisfactorily in the Jungfraujoch segment. Despite four days with breakdowns, 75,246 guests visited the Jungfraujoch from 1 January 2019 to 28 February 2019. Compared to the same period in the previous year, there was an increase of 7,863 guests, or 11.7%. However, this is also related to the slow start in 2018 (ten days lost in January due to storm).

The JUNGFRAU Ski Region is a cooperation in which the Jungfrau Railway Group holds more than 60%. The JUNGFRAU Ski Region tariff alliance comprises twelve companies. The ski areas include Grindelwald-First, Kleine Scheidegg-Männlichen and Mürren-Schilthorn sub-areas. Snow sports enthusiasts can use their equipment for the entire destination with their subscription. Measured by the 990,000 ski visits (overall winter season 2017/2018), this ski resort is one of the largest in Switzerland.

 The JUNGFRAU Ski Region earns approximately half of its winter sports income from visitors on winter holidays in the region. The region is distinguished internationally with an incomparable natural experience and a varied range of slopes with a variety of long valley runs. The ski areas are directly accessible from the historic resorts of Grindelwald, Wengen and Mürren. The region has a top position with its winter hiking and sledging facilities.

 Day trippers, who form the other half of the winter sports customers, are more focused on the sporting activity. This is reflected in the requirements for the quality of the slopes, as well as the capacities of the feeder systems and transport routes (parking). There remains a strong focus on children. The “Children ride Saturdays free” promotion was used 11,000 times in the winter of 2017/2018.

 Jungfrau Railways is the specialist for feeder systems and service facilities, slopes and fun parks in the ski area. The remaining parts of the value chain are covered only partially or in cooperation. Rental of equipment is promoted in a joint enterprise with local sports retailers (Intersport Rent-Network). Correspondingly, cooperation is closely tied to the regional economy, hoteliers, retailers and local tourism organisations.

Despite turbulent weather conditions in January and often unfavourable weather on the weekends of the high season, business activity from the beginning of the year until the end of the season in spring 2018 was satisfactory due to good snow conditions. The number of skier visits for the financial year 2018 increased in the Jungfrau Ski Region as a whole on the previous year by 5.4% to 987,000. For the Jungfrau Railway Group, net transport revenue from the winter sports business amounted to CHF 22.1 million. Despite the increase on 2017, the result is still below the great winter sports years of 2007/2008.

In the highly competitive and saturated winter sports market, winter sports destinations with snow safety, high quality, varied slopes and plenty of convenience stand out. The course of the winter season 2017/2018 exemplifies how strongly weather and weather forecasts can influence demand. The trend towards the short-term and spontaneity has to be countered with new offers and pricing models. Offers that bind customers early or longer are becoming increasingly important. The Jungfrau Ski Region has teamed up with the large ski areas of the Bernese Oberland and has launched a seasonally priced season pass for CHF 666. With the purchase of such a subscription before the start of the season, demand is no longer linked to the factors that influence short-term purchases. The fact that the customer bears the risk for the meteorological conditions and for their spontaneous behaviour justifies the discount of around 33%. The partners agreed to an introductory phase of at least three years. In the second year (season 2018/2019), the subscription has paid itself off and the number of passes sold increased by 7%.

Less volatile, and therefore very valuable, is the winter sports business with holiday guests. To promote this or to keep up with the worldwide quality standard, the integration of tourism services must be constantly improved. As a traditional provider of transport services and slopes, the Jungfrau Railway Group is now focusing on completing the value chain. As an integrated tourism company, the new V-Cableway terminal will extend and expand activity along the value chain. For winter sports enthusiasts, the services in the area of the ski depot, rentals, ski school and catering have improved.

The Jungfrau Ski Region benefits from the unique backdrop of the Bernese Alps and the corresponding opportunity to utilise the feeder lifts increasingly with international excursion tourism in winter as well. The new tricable gondola from Grindelwald to the highest point of the ski area, an element of the V-Cableway project, has been designed from the outset for this mixed use.

The winter sport business continues to be challenging. Visitor numbers to the Jungfrau Ski Region increased by 11.3%  from 1 January to 28 February 2019 compared to the previous year. Despite the improvement, Jungfrau Railways is committed to continuous quality improvement. With the V-Cableway project, travel times will be greatly shortened with a direct connection to public transport. On 14 December 2019, with the new ten-person gondola Grindelwald-Männlichen, the first facility of an international standard will also open. For our winter sports guests, this means greater comfort through smart guest guidance and better use of capacity. The entire system with the new Eigerexpress tricable gondola will be put into operation on 12 December 2020.

The Experience Mountains are a strategic supplement. They are constantly gaining importance. In the fiscal year 2018, they generated 13% of Group sales. The mountain railways and the adventure worlds, some of which are specially created and maintained by the railways, form a solid basis for the local tourism industry and the linked agriculture. They create added value for the entire region by giving the opportunity to spend more time in the area, to spend the night or to take part in classic sports and hiking holidays. In the sustainably strengthened, intact and lively environment, our primary offer of Jungfraujoch – Top of Europe can be positioned even more successfully.

 The experience mountain segment includes the following attraction points:

•    Grindelwald-First, Top of Adventure
•    Harder Kulm, Top of Interlaken
•    Winteregg-Mürren, Top of Family

 The Jungfrau Railway Group complements its offer with the following cooperations: Kleine Scheidegg-Eiger glacier (from the segment Jungfraujoch – Top of Europe), Schynige Platte-Bahn (a railway of the alliance partner Berner Oberland-Bahnen AG), gondola lift Grindelwald-Männlichen (holding of 35.5%), the Wengen-Männlichen cable car and Autoverkehr Grindelwald. The connecting element for these excursion destinations is the multi-day “Jungfrau Travel Pass”. This pass offers visitors a wide range of excursion destinations valid for up to six consecutive days.

For all Experience Mountains, which include excursion transport to Harder Kulm, First and Winteregg-Mürren, the Jungfrau Railway Group registered record results. With an increase of 26.7% in total, net transport income could once again be significantly increased. The Harder Railway achieved an increase in net transport income of another 36.2%. The First Railway booked an increase of 31.2%. The Lauterbrunnen-Mürren mountain railway achieved an increase of 7.6% in net transport income. For the Experience Mountains overall, a CHF 4.3 million higher transport income was generated than in the previous year, at CHF 20.2 million.

 The good result of the Harder Railway backed up the company's decision to extend the Harder season by one month. With good visibility from the centre and the limited time required, the mountain has become a must for every visitor to Interlaken, opening up markets outside the Jungfrau Railway. The fact that the other excursion destinations are continuing to develop positively is due to the fact that they are actively taking up the trend towards athletic and fun-filled activities in the wild. The First Railway can successfully position itself for everyone with the “First Cliff Walk”, the two adventure railways “First Flyer” and “First Glider”, mountain carts and the Trottibike scooters in the Soft Adventure area. For the first time in 2018, the First Bagjump was also made available to adventure seekers during the summer. Winteregg is continually strengthening its family attractions. With the new freeride track opened in 2017, it has a unique attraction for the ambitious cyclist. In the financial year 2018, the Detective Trail was opened together with Mürren Tourismus in order to position the “Top of Family” even more clearly. The Mürren Railway benefited above all from cross-marketing with the Jungfraujoch – Top of Europe.

The Experience Mountains are further expanding their successful outdoor and soft adventure offerings. On First, zoning principles to further supplement the adventure offer are being worked on. The planned gondola entry system will also increase the quality of customer information for guests. In 2019, the efficiency and quality of the Harder Railway will be further enhanced by improving guest guidance at the valley station, replacing the furniture on the outdoor terrace and rebuilding the self service-station.

 Weather also plays an important role in terms of demand in this segment. Within these basic weather conditions, however, the products of the segment are very well positioned and can also be combined with other segments. This good starting position suggests that the company will continue to grow.

The power plant supports the independence of the Jungfrau Railway Group in one of its most important resources – energy – and provides services in the field of energy supply. In particular, thanks to intensive rainfall in the winter, the production volume at 66 GWh was a complete success. Energy sales, which due to trade exceed the production of 66 GWh, amount to 77.3 GWh, an increase of 5.2% compared to 2017.

Thanks to its location at the railway junction, the Lauterbrunnen car park is well positioned as the central transfer point between individual transport and the car-free resorts of Mürren and Wengen. In the reporting year, the car park averaged 68.4%, an increase of 1% compared to the previous year. Rental income reached CHF 2.3 million in 2018.

Jungfraubahn Holding AG entrusts Jungfraubahnen Management AG with the provision of management infrastructure and the provision of the services in specialist and support areas. The most important asset of this company is the central IT infrastructure of the Jungfrau Railways. The remuneration of CHF 5.8 million received by Jungfraubahnen Management AG for services to third parties comes from cost codes, particularly from Berner Oberland-Bahnen AG, and direct billing of services. Management AG also increasingly generates commission income from sales, in particular tickets, via the Internet.