Next-Generation Pricing and Inventory Management Solutions for Passenger Rail

Next-Generation Pricing and Inventory Management Solutions for Passenger Rail

The ChallengeI need a Revenue Management system that’s fast, straightforward and makes sense

Inventory Optimization

You’ve finally confirmed the timetables for the trains you’re managing. Now you have just a few short days to confirm available capacity, understand any demand implications (don’t forget that football match), and research competitor prices all while making sure customer service remains high. Oh, and by the way, you’re likely doing all of this on a legacy Revenue Management system that wasn’t designed for Passenger Rail or, even worse, in an Excel spreadsheet.

What if you could start from an initial comprehensive recommendation that has accounted for all the variables? You could say goodbye to the wasted minutes manually loading data, copy/pasting, and working around system limitations. You could leverage your expertise to guide the recommendations and only manage exceptions where the system proactively tells you it is less confident. You could set your inventory with confidence and focus on the strategic decisions that drive real value.

THAT WOULD MAKE LIFE A LOT EASIER…SO, HOW?

By leveraging billions of historical data points to identify key passenger behavior by season, journey, demand, price sensitivity, and competitor influence, the Revenue Analytics demand engine can model the anticipated bookings for each train.  These deadly accurate forecasts feed our pricing and optimization engines which use industry-proven predictive analytics to recommend the optimal prices and inventory levels across departure times and classes.  Unlike legacy Revenue Management systems that optimize only one train at a time, RA engines even account for surrounding trains when optimizing pricing and inventory.

But how do you know these prices and inventory recommendations are business reasonable and executable? Our hybrid approach means that this isn’t just blind math – we blend human intelligence with artificial intelligence to ensure recommendations pass not only a gut check but aligns to your business strategy as well. Backed by years of industry expertise and powered by machine learning, you can rest easy knowing that the results of our solution are true and trusted. 

Why are these flexible solutions so widely adopted by our customers – both users and stakeholders? The key is an inclusive, collaborative approach from the beginning, involving Marketing, Finance, Pricing, Revenue Management, and Executive Leadership to ensure we have total alignment on the solution that is right for your business. The Revenue Analytics A2E2 approach ensures that key functions and stakeholders buy in from the start, drive adoption and become advocates on your behalf.

Unlike alternatives, the Revenue Analytics SaaS platform delivers ongoing value and isn’t merely a snapshot in time. Our Managed Analytics Service complements our SaaS offering, evolving with your changing needs and competitive market dynamics. This isn’t customer service or tech support, but genuine Atlanta-based PhD mathematicians who understand your business. They keep keen watch over your models and effectively become an extension of your team. Their recommendations ensure that not only does the math make sense, but that the real-world use also rings true.

The ChallengeI need pricing that drives ridership AND profitability

Customer-Centric Price Optimization

Your Passenger Rail Revenue Management team is in a tough spot. You’re pressured to drive revenue and deliver against budget, while at the same time offering passengers affordable travel options. Furthermore, you’re asked to consistently deliver against revenue goals despite schedule changes, ongoing engineering work and maintenance, and short timetable windows.

On top of that, the variables impacting your pricing decisions are numerous – like Day of Week, Daypart, Forecasted Demand, Customer Price Sensitivity, and Competitor Pricing. So how do you balance those conflicting priorities and numerous variables when making your pricing decisions?

How can we expect to do all of these accurately when the average Rail Revenue Manager makes 50,000+ pricing decisions every day?

What if you could automate the eyeball analysis you’re currently doing with a pricing system that “thinks” about the problem the same way your customers do? How important is price to them? Which customers are more sensitive and will respond to discounts for off-peak travel? Which customers have shown a willingness to pay more to get the specific train they want? And what factors outside of price drive their decision?

PRICE OPTIMIZATION FOR PASSENGER RAIL MUST START WITH THE CUSTOMER AND NOT THE TRANSACTION.

Mining historical and competitive market data to understand booking behaviors, expected demand, and the responsiveness of different customer segments enables you to optimize your pricing across segments to drive both ridership and profitability.

Data-driven analytics can help you better understand how your customers make their booking decision, how they view potential trade-offs, and how specific segments of customers respond differently. And mathematical optimization folds in the competing factors of demand, competitive price positioning, and customer sensitivity to determine optimal rates.

But are these suggestions business reasonable and executable? Our hybrid approach means that this isn’t just blind math – we blend human intelligence with artificial intelligence to ensure recommendations pass not only a gut check but aligns to your business strategy as well. Backed by years of travel industry expertise and powered by machine learning, you can rest easy knowing that the results of our solutions are true and trusted. 

Why are these flexible solutions so widely adopted by our customers – both users and stakeholders? The key is an inclusive, collaborative approach from the beginning, involving Revenue Management, Marketing, Finance and Executive Leadership to ensure we have total alignment on the solution that is right for your business. The Revenue Analytics A2E2 approach ensures that key functions and stakeholders buy in from the start, drive adoption, and become advocates on your behalf. 

Unlike alternatives, the Revenue Analytics SaaS platform delivers ongoing value and isn’t merely a snapshot in time. Our Managed Analytics Service complements our SaaS offering, evolving with your changing needs and competitive market dynamics. This isn’t customer service or tech support, but genuine Atlanta-based PhD mathematicians who understand not only the rail business, but your specific rail business. They keep keen watch over your models and effectively become an extension of your team. Their recommendations ensure that not only does the math make sense, but that the real-world use also rings true.

The ChallengeI need to measure my Revenue Management performance and identify areas for improvement

ROM Inventory & Pricing

You’ve been down this track before: your Rail business has been incrementally improving on its Revenue Management capabilities and now you’re confident it’s having a meaningful impact. But, now that you’ve got the basics addressed, you’re not sure where you should focus your efforts and Revenue Management investment dollars. You’ve got the blocking and tackling down and you’re seeing results, but what’s the next stop on your path to world-class pricing and Revenue Management?

WHAT IF YOU COULD GO BACK IN TIME AND KNOW THEN WHAT YOU KNOW NOW?

Leveraging historical data and looking at past performance, you could isolate factors such as advanced purchase/walk up demand, shoulder train availability, special events, engineering and maintenance, targeted pricing for premium or standard, promotions, and any other meaningful factors to truly identify what would have been the optimal strategy. What levers should you have pulled if hindsight is 20/20? Despite your successful RM efforts of the past, there’s always going to be room for improvement, and identifying what you should have done will allow you to make better decisions in the future.

And What Would You Do DIFFERENTLY?

Using a Revenue Opportunity Model (ROM), we can determine the gaps between what you did and what would have been optimal. First, you’ll be able to make immediate changes to optimize revenue with these insights, such as keeping lower rates open for a shorter period, offering targeted discounts for need trains, or shifting availability from lower-yielding to higher-yielding O&Ds. Next, after you make these changes, the solution provides ongoing monitoring on a periodic basis to assess the impact of the changes you’ve made.

But are these findings business reasonable and executable? Our hybrid approach means that this isn’t just blind math – we blend human intelligence with artificial intelligence to ensure this passes not only a gut-check but aligns to your business strategy. Backed by years of industry expertise and powered by machine learning, you can rest easy knowing that the results of the solution are to be trusted and true. 

Why are these flexible solutions so widely adopted by our customers – both users and stakeholders? The key is an inclusive, collaborative approach from the beginning, involving the Revenue Management, and Executive Leadership teams to ensure we have total alignment on the solution that is right for your business. The Revenue Analytics A2E2 approach ensures that key functions and stakeholders buy in from the start, drive adoption, and become advocates on your behalf. 

Unlike alternatives, the Revenue Analytics SaaS platform delivers ongoing value and isn’t merely a snapshot in time. Our Managed Analytics Service complements our SaaS offering, evolving with your changing needs and competitive market dynamics. This isn’t customer service or tech support, but genuine Atlanta-based PhD mathematicians who understand your business. They keep keen watch over your models and effectively become an extension of your team. Their recommendations ensure that not only does the math make sense, but that the real-world use also rings true.