Competition and new players are disrupting forces. Rail companies responding with commercial agility, personalised products and omni-channel sales strategies will be able to provide the right price at the right time to the right passenger.
Customers generally want the cheapest fare and it is key to empower them in the fare display, by accounting for preferences and upselling opportunities.
Turning to flexible fares and pricing technology will enable rail operators to anticipate demand and allocate capacity, hence, maximising revenues from their inventory.
Rail pricing strategy requires instant time to market to maximise revenue. However, many rail companies are still reliant on legacy systems that are not able to implement operational changes as quickly as their commercial strategies demand.
In many cases, governmental regulations limit the rail pricing flexibility, however, when looking to improve profitability, rail operators need to:
Rail operators face the enormous challenge of increasing turnover in passenger travel and at the same time lowering the cost of sales.
The rail industry needs to adopt commercial agility, if it is to keep up with the volume and sophistication of tomorrow’s rail passengers.
Lean thinking is about cutting waste and removing inefficiency, whilst in turn increasing effectiveness and customer value.
The report examines the principles and origins of lean and shows how they can be applied to IT and operations within the travel industry.
With high levels of fixed costs achieving profitability is a challenging task for a railway. Rail operators continually need to think how to reduce inefficiency, and more importantly, how to increase their profitability.Read more
New sales channels will have to open up new ways to engage customers with better informed data at the right time, and at the right place. This will be key in getting a sales strategy right in the future.Read more