The value of customer-centric strategies for passenger railways

The golden age of rail―when the journey itself was an experience―might seem a memory. But conditions are right for a renaissance. Newer high-speed trains are making long-distance rail a more viable alternative to air and road travel. Even with a slow economic recovery, rail is growing quickly.   But the induvaluestry still faces serious growth and economic challenges. Forecasts show that nearly 60 percent of European rail corridors may have severe capacity issues by 2015. In California, government subsidies have been reduced by 45 percent. And in Europe, some companies are facing a financial crisis because they can’t fill seats. To thrive, railroads must raise the profitability of each seat by improving the long term value of each customer relationship. The key is to attract riders using relevant offers and good service, and by actively managing supply and demand. Research suggests that the right strategy can help railroads accomplish both.But the roadmapchartindustry still faces serious growth and economic challenges. Forecasts show that nearly 60 percent of European rail corridors may have severe capacity issues by 2015. In California, government subsidies have been reduced by 45 percent. And in Europe, some companies are facing a financial crisis because they can’t fill seats.

To thrive, railroads must raise the profitability of each seat by improving the long term value of each customer relationship. The key is to attract riders using relevant offers and good service, and by actively managing supply and demand. Research suggests that the right strategy can help railroads accomplish both.

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