Revenue analysis and short-run demand forecasting
Your company needs to have regular information about several key revenue and demand indicators:
- Are they meeting the most recent forecast?
- Are they growing over the previous year?
- How does the growth compare with other benchmarks in the industry?
If any of these are unsatisfactory, then other actions such as marketing and cost reduction programmes may be needed. Short term forecasts should be amended to take emerging results into account. The effects of other changes must also be allowed for e.g. economic factors, fares increases, allocations (especially Travelcard and ORCATS), service changes and new products.
How we can help
Line by Line can undertake these analysis tasks, often at short notice. We may also suggest additional useful analyses. We can either provide advice and training to the incumbent revenue analyst or provide a full period reporting service while a permanent replacement is found. We are experienced in the interrogation and use of the railway ticket revenue database, LENNON. We have carried out a large amount of work in this area, including:
- Revenue analysis and reporting for 3 London and South East TOCs. This involved income analysis and the development of queries to aid reporting under the industry system, LENNON. We also created several passenger income forecasts within this period.
- Estimation of year zero passenger revenue for 7 franchise bids.
