United Rail Passenger Alliance

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