Pricing analysis and strategy
Pricing is one of the key means of increasing revenue on the railway. The calculation of the revenue effect of pricing strategy is also a key input into Train Operating Company (TOC) budgets, business plans and franchise bids.
How we can help
Line by Line can advise you on the best way to increase yield while still keeping average fares changes within the constraints of fares regulation. We can also build simple models to calculate how much different pricing strategies will increase your revenue. Examples of work we’ve carried out include:
- Pricing strategies (including evaluation of options) for 8 major franchise bids.
- Fares optimisation studies for 2 TOCs. Each of these studies resulted in significant revenue gains to the TOC compared with less sophisticated strategies.
- Pricing strategy for 4 London and South East TOCs.
- Advice to the Department for Transport on the impact of flat cap fares regulation in January 2010.
- Advice to Welsh Assembly on regulated fares strategy.
