Passenger Trains > Amtrak tightening up on discounts, refunds in January

Amtrak is tightening up on discounts in late January, according to a Trains.com news item.
We are not permitted to quote Trains.com items, so here is a summary:

The "senior" age is increasing from 62 to 65, and the senior discount is decreasing from 15% to 10%.

The disability discount is decreasing from 15% to 10%.

Child discounts will be limited to one child per adult passenger.

Senior, student*, child and "passenger type" discount (Veterans Advantage, NARP, AAA, etc.) will no longer be applicable to top fare buckets.

Refunds will be tightened up, with a mandatory 25% penalty on certain refunds (sleepers, Saver fares) where there is no penalty at present prior to travel date/time. Penalty waived if reservation is converted or rebooked in the same transaction, and a fare decrease can still be issued as an e-voucher, but not as a cash refund.

* As has been mentioned before...the student discount is already gone from all Amtrak-financed trains (NEC, long distance). It is in effect only on State-sponsored trains, and State-sponsored segments of through NEC trains...and that will remain according to the States' discretion, not Amtrak's.



Edited 10 time(s). Last edit at 12/15/17 08:14 by GenePoon.

One child per adult. No AAA discount in upper buckets? Shouldn't it be the opposite? No AAA in lower fare buckets?

You expect this from a "private" business that reports only to its shareholders. You don't expect this kind of tightening and fare increases from a company that takes roughly a billion dollars from the government each year.

knotch8 Wrote:
-------------------------------------------------------
> One child per adult. No AAA discount in upper
> buckets? Shouldn't it be the opposite? No AAA in
> lower fare buckets?
>
> You expect this from a "private" business that
> reports only to its shareholders. You don't
> expect this kind of tightening and fare increases
> from a company that takes roughly a billion
> dollars from the government each year.


...unless they are making an attempt to maintain service and make that government money go farther.

TAW

Get ready to start paying for checked baggage, too! And service changes? You Bet!

I would think seniors should be surcharged 10%, as they are a captive market for Amtrak.

< Senior, student*, child and "passenger type" discount (Veterans Advantage, NARP, AAA, etc.) will no longer be applicable to top fare buckets. >

They are no good on Saver fares as it is. So what does that mean, none at all, or only valid on the 2 in the middle.

PC1974 Wrote:
-------------------------------------------------------
> Get ready to start paying for checked baggage,
> too! And service changes? You Bet!

Checked baggage? Big deal. Very, very few locations where Amtrak still offers checked baggage.

I would rather see Amtrak selectively increase fares and eliminate discounts instead of cutting routes, frequencies, or amenities. BSB

Removing the discounts on just the top fare buckets is an odd technique.

I would have expected the company would require prepayment 30 days in advance, then impose a charge for cancel / change on all tickets.

Posted from Android

joemvcnj Wrote:
-------------------------------------------------------
> < Senior, student*, child and "passenger type"
> discount (Veterans Advantage, NARP, AAA, etc.)
> will no longer be applicable to top fare buckets.
> >
>
> They are no good on Saver fares as it is. So what
> does that mean, none at all, or only valid on the
> 2 in the middle.


Probably the latter.

Understand that the changes are still a "work in progress" and although conceptually
decided upon, details still could be altered.

To me these are all indications that there are now people at Amtrak that understand yield management. Every company has a fiduciary responsibility to its shareholders, or in Amtrak's case to the American public that provides its subsidy, to operate in the most efficient manner possible. I think Amtrak is much more likely to see additional future funding if it is perceived to be making the best possible use of the subsidy it already gets.

Gordon

gbmott Wrote:
-------------------------------------------------------
> To me these are all indications that there are now
> people at Amtrak that understand yield management.
> Every company has a fiduciary responsibility to
> its shareholders, or in Amtrak's case to the
> American public that provides its subsidy, to
> operate in the most efficient manner possible. I
> think Amtrak is much more likely to see additional
> future funding if it is perceived to be making the
> best possible use of the subsidy it already gets.
>
> Gordon

I think you are correct.

Yield Management can be easily abused at the expense of capacity.
They can run 1 coach on the CL between DC and Chicago, fill it, and charge everyone $350 in the summer
They can also run 3 coaches and charge everyone $109.
Which will they do ?

knotch8 Wrote:
-------------------------------------------------------
>> You expect this from a "private" business that
> reports only to its shareholders. You don't
> expect this kind of tightening and fare increases
> from a company that takes roughly a billion
> dollars from the government each year.

Congress is the shareholder of Amtrak.

joemvcnj Wrote:
-------------------------------------------------------
> Yield Management can be easily abused at the
> expense of capacity.
> They can run 1 coach on the CL between DC and
> Chicago, fill it, and charge everyone $350 in the
> summer
> They can also run 3 coaches and charge everyone
> $109.
> Which will they do ?

Amtrak is in love with the fixed consist, and that's not a good thing for revenue management.

There are plenty of trains which can sell another car (Acela 2154 is my go to), so why not create two longer Acela sets, and cycle other equipment to assure 2 or 3 available long sets?

Run the one car short sets on the under sold trains, then shuffle the deck to add two cars. Make them the long set for two weeks.

Unhook the set if needed to fit into the pit for inspection, it's not the end of the world. Selling 50 more seats at $300 will pay for an additional switch out.

Posted from Android

reindeerflame Wrote:
-------------------------------------------------------
> I would think seniors should be surcharged 10%, as
> they are a captive market for Amtrak.

You are like the John Kneiling of Trainorders! I guess that's a compliment.
I remember reading Trains magazine as a teenager & getting so pissed at his comments.

mp51w Wrote:
-------------------------------------------------------
> reindeerflame Wrote:
> --------------------------------------------------
> -----
> > I would think seniors should be surcharged 10%,
> as
> > they are a captive market for Amtrak.
>
> You are like the John Kneiling of Trainorders! I
> guess that's a compliment.
> I remember reading Trains magazine as a teenager &
> getting so pissed at his comments.

Most seniors are on fixed income. There's a reason why senior discounts are offered by many countries worldwide. Let's not give him the benefit of the doubt that he's being sarcastic.

I'd say we end retirement benefits for people of his (reindeerflame's) age and younger right now.

I’m not sure what he means “captive market for Amtrak.” I’m a senior now and I’m not captive to Amtrak. I generally fly for most long distance trips, once in a while I drive. The last time I was on Amtrak, a Surfliner from Anaheim to LA, they didn’t even collect my ticket. I guess that was the ultimate discount.

I would think they would have to charge for baggage and ANYTHING entering the baggage cars so as to get some sort of return on these NEW cars that are hardly big revenue generators.

But charging the baggage fee will just lead people to try and carry it onboard with them or stuff in their sleeper - except for perhaps the single level long distance trains. 

I don't have the time or patience to deal with "baggage" for the baggage car when I travel. Time is precious and so is the connecting train. Amtrak typically doesn't offer baggage at my initial boarding station, and I'd still have some anxiety that my baggage may not be travelling with me. Thus, the suitcase and briefcase/backpack sits downstairs in the Superliner sleeper, or across from me if on a Viewliner sleeper - with proper weights and dimensions. When the Mrs. travels with me, it's usually a larger room so still not an issue, even if Viewliner Bedroom. To/from Chicago - always the Capitol Limited now. Superliner equipment I still find to be superior than the single level equipment. I have also shipped my luggage ahead via UPS or FEDEX. 

Amtrak will likely price itself right out of the baggage car. 

The crack down on the discounts, I've always found it easier and more beneficial to do a price increase and still retain discounts. The 25% penalty I think is a bit too far. Converting to a voucher still retains the full transaction value. The 25% charge leaves a bad taste in the travelers mouth. Service industry should work towards appeasement and accomodation. People may have to cancel due to a personal emergency that came up, health problem, etc. Even though the doctor may have cleared me to take a trip, if I am  now on crutches does Amtrak really want to take the risk of transporting me if I am willing to re-book within six months when better? If I fall on the way to the diner when the Empire Builder is travelling through Montana, do they really want to delay the train in order to get me air-lifted to the nearest hospital? I actually had this scenario come up - but on a trip booked on VIA for the Canadian - and believe it or not, they were not too accommodating despite doctor letter and pictures. 

How will a refund work: will they deduct 25% even from an e-voucher ?