TU Braunschweig


Revenue Management Strategies in the Railway Industry

Projektbearbeiter: Martin Schroeder, Imma Braun

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For the last decades the entire volume of traffic in Germany is increasing more and more, whereas the railway traffic as a part of the entire traffic volume is stagnating or even decreasing. The rising number of secondary lines, which will be closed down due to their lack of profit, the increasing number of train delays which are intensified by the overload of the main lines and the declining revenues of the railway transport operators compel for the development of new programmes for marketing of the products and services of railway traffic. These plans must be consistently aligned to the customers? needs and must fulfil requirements like flexibility, competitive prices and the adaptation of supply according to the demand.

Aprogramme to harmonise the use of capacity and to increase the profit, which takes this requirements into account is Revenue Management.A requirement for the use of Revenue Management in business management is the existence of different conditions in the production process, first the perishableness of the goods, that means, in case the service is not requested within a certain timeframe, it will lapse. Secondly, the service will be booked in advance, thirdly the capacity is inflexible, fourthly the possibility of price differentiation and finally the possibility of segmentation of the customer into customer-groups according to their demand behaviour. These requirements are valid for different parts of the railway business. They characterise on the one hand the marketing of seats in trains of transit and passenger traffic as well as the cargo capacities in freight traffic.Onthe other hand they are also applicable for the marketing of slots in the field of infrastructure provision.

Handout: Revenue Management im Schienenverkehr