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Overview, Concepts Of The Successful Long Distance Train Of The Future

September 7th, 2005 wlindley Print This Post Print This Post
– OVERVIEW POINTS –

The successful long distance train of the future

  • will look very different from today’s Amtrak long distance train.
  • will look more like the successful trains of the past

Change in operational structure

  • Today: A single company owns, operates, markets
  • Tomorrow: Based on Franchise Structure

Franchise Structure

  • Umbrella company like Amtrak for Marketing, Ticketing and Service Standards
  • Other companies, acting like owners, provide capital, equipment, and operations under those Service Standards
  • This is a proven model over several decades in hospitality and travel business

Thumbnail History of Passenger Transport

  • Historically, Rail Passenger Service was a Successful Private Business
  • Private Business could not compete after World War II due to continuing Regulation and Taxation in an era when unprecedented Government Funding was given to Roadways, Highways, and Airways
  • Today, new Highway construction has nearly ceased, and Profits in the the Airline Industry are Scarce

Driven to Succeed

  • All Modes — Rail, Road, Water, and Air — should benefit from Appropriate Levels of Government Involvement in Infrastructure
  • The Franchise Model of Passenger Trains maintains some Government involvement in Infrastructure
  • The drive and rewards of capitalism are always stronger than the drive and rewards of government control

Surprising Demographics

  • A late 1990s passenger survey on one Sunset Limited train showed:
    • On board were four Ph.Ds, and a high number of American Express Gold Card holders
    • Average sleeping-car passengers were traveling for pleasure, well educated, and willing to spend money on accommodations and amenities.
    • Coach passengers tended to be younger, travel a shorter distance, and be traveling for purposes other than leisure travel.

Premium Travel Already Proven Success

  • American Orient Express
  • Rocky Mountaineer
  • VIA Rail Canada’s trains such as the Canadian

What Makes Premium Travel Succeed?

  • Why are Americans are willing to embrace long distance rail travel at what many consider to be a premium price?
  • Comfortable accommodations
  • Good food
  • Interesting amenities
  • Offerings similar to those of popular upscale cruise ships.

Amtrak In Continuing Identity Crisis

  • Contradictory Goals
    • As an agency of government, Amtrak is subsidized by the government, and therefore should serve the lowest common denominator of passenger
    • Yet, high revenue first class passengers, particularly on long distance trains, pay large fares that help pay for other, low revenue services the railroad operates
  • Amtrak has never been able to come to grips with these two profiles
  • There has never been a consistent product that attracts repeat, high revenue passengers

Equipment Limitations Reduce Flexibility

  • Historically, railroads kept a large variety of rolling stock, tailored to their routes and services
  • Amtrak’s small roster of passenger cars is further diminished by a large percentage which are out of service or waiting to be repaired
  • Amtrak has concentrated on a few equipment types with system-wide standard configuration, and little regional variation in services
  • Lack of seats to fill demand, lack of flexibility, and limited service offerings contribute to the loss of many revenue opportunities

Concentration on First-Class

  • Future passenger service will concentrate on first-class passengers
  • First-class passengers generate much more revenue
  • Additional expenses for added service will be met through fare structure

Three Classes of Coach Service

  • Premium Long-Distance;
  • Standard Long-Distance;
  • Short-Distance.

Coach Services Will be Tailored to Market Segment

  • Families who have needs associated with children
  • Senior Citizens with more leisure time, disposable income, and who seek better comfort and service

Example Future Passenger Train

  • Locomotives
  • Up to fifteen or twenty Passenger Cars, comprised of:
    • Baggage Car
    • Three to ten Sleeping Cars
    • Two Dining Cars
    • One Lounge Car
    • One Recreation Car with facilities for Children and Adults, and a Gift and Sundries Shop.
    • Three to five Coaches

Comparison to Today’s Average Amtrak Train

  • Typical Amtrak train today has nine cars
  • Train of the future will have fifteen to twenty

Advantages of Operating Much Larger Trains

  • The costs of operating a train do not double, when the length of the train doubles.
  • Costs increase only incrementally
  • Fixed costs (management, stations, dispatching, host railroad train-miles) change very little with added train length

Sleeping-Car Services to be Offered

  • Exclusive bedroom cars, including Drawing-Rooms for three passengers. Today, similar accomodations typically sell out first.
  • Combination Cars containing Bedrooms (with two beds) and Roomettes (with one bed)
  • Combination Bedroom, Drawing Room and Lounge Cars
  • The First-Class Lounges will provide
    • Continental breakfasts
    • Light refreshments during mid-morning and afternoon
    • Revenue alcohol service
    • Evening dessert service
  • One Lounge area provided for quiet reading, with no food or beverage service
  • 24-hour room service, meal and beverage service, available to all sleeping-car passengers

Coach Services to be Offered

  • Premium Long-Distance Coach
    • A completely new class of coach service
    • Fewer seats, in smaller groupings, for a quieter and more pleasing setting
    • A small self-catering Lounge area will offer light food and beverages
    • Newspapers and snacks will be provided
    • Meals included in the ticket price
    • Upgraded restroom facilities including a Shower will be available
    • These Cars will be located directly adjacent to the Sleeping cars
  • Standard Long-Distance Coach
    • Similar to current offerings
    • Interiors reconfigured to provide several types of seating groups
      • For families with children
      • For groups of three or more
  • Short-Distance Coach
    • Similar to current offerings
    • Seating area split into two sections for lower noise level

Dining Car Services to be Offered

  • One traditional diner
    • White linen service
    • Open continuously from 6 A.M. to 10:00 P.M.
    • Primarily services Sleeping Car and Premium Coach Passengers
    • Available to all passengers
    • Prices and menu offerings similar to upscale restaurants
  • One Mid Level diner
    • Open 24 hours
    • Prices and menu offerings similar to Denny’s chain
    • Placemats replace tablecloths
    • Counter and take-away service available

Lounge Car Services to be Offered

  • Distinct from the Lounges in the First-Class Cars, this will be aimed primarily at Coach passengers
  • Snack and beverage service
  • Meals or sandwiches are offered in the 24-hour dining car, not the Lounge

Recreation Car Services to be Offered

  • Gift and Sundries shop, as found on Cruise Ships
  • A small Video Arcade
  • A glass-enclosed Children’s Play Area which can be monitored by Parents

Passenger Experience Drives Return Business

  • The Railway Experience begins with arrival at the station, through boarding the train, and ends only upon departure from the destination station
  • From Students to Professionals to Families to Senior Citizens, the passenger train of the future has something for everyone
  • Travel at High Speed is not critical; instead, the service must be well designed and executed

Moving To Successful Operations

  • Today’s Long-Distance trains are successful, on the basis of actual operating costs
  • Enormous corporate overhead, and maintenance of the Northeast Corridor, are added to long-distance operating costs, making them appear to lose money

These Future Trains Can Succeed Even Where Today’s Do Not

  • Restructure the equipment, with accomodations better able to meet a variety of needs
  • Restructure the offerings, with on-board services for a better passenger experience and more revenue opportunities
  • Restructure the marketing, with fares and services to match different budgets and travel styles
  • Enlarge capacity to meet demand
  • Expand revenues much faster than expenses
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