Our politicians in Washington seem all concerned these days about balancing the budget. Some want to do it by cutting spending, others by raising revenue. Revenue, in Washington, usually means taxes, which are collected from the willing and the unwilling alike. But revenue can also come by providing a product or service that people want to buy at prices they are willing to pay. In that second sense, Amtrak has been raising revenue. This installment of Amtrak Success Stories will focus on Amtrak's May performance report and how Amtrak has been able to increase its revenue in the past year.
http://www.amtrak.com/servlet/BlobServe ... onthly.pdf
Passenger revenue in May increased 11% from a year earlier, as gasoline prices averaged $3.96 per gallon and passengers grew dissatisfied with the hassles of traveling by air. Amtrak's top five trains in May in terms of revenue per train trip were:
1. Auto Train $102,303
2. Acela $91,364
3. Empire Builder $87,419
4. California Zephyr $72,663
5. Southwest Chief $65,409
The daily Auto Train carried an average of 351 passengers each way between Lorton, Virginia and Sanford, Florida. Because the train does not make any intermediate stops, all those passengers traveled the entire length of the route. That was an increase of 11% in the number of passengers but only an 8% increase in revenues as passengers made their reservations earlier than last year.
Revenues on the Acela are up 13% over last year and represent 27% of Amtrak's business. The train runs 10 times per day in each direction Monday through Friday, twice on Saturdays and 5 times on Sundays and Holidays. The 304-seat train carried an average of 613 passengers per train in May. Seats are typically used twice, once between Boston and New York, and a second time between New York and Philadelphia or Washington. Since most passengers begin or end their trips in New York, nearly every seat was filled when the train left Penn Station.
Amtrak would like to increase revenue further from this popular service. To do so, they are proposing to buy new railcars to lengthen each train and increase the number of available seats by 40%.
The Empire Builder had an increase in revenues of 16% and carried an average of 721 passengers per train. A seat on the Empire Builder will typically get sold three times (Chicago to St. Paul, St. Paul to Minot and Spokane to Portland).
Sales on the California Zephyr increased 21% in May as the train carried an average of 545 passengers per train. Popular segments on the train are Chicago to Denver, Denver to Glenwood Springs and Reno to Sacramento. Denver is spending $484 million on a new transit center and Sacramento is spending $41 million.
http://www.unionstationdenver.com/
The Southwest Chief carried an average of 530 passengers per train and ticket sales rose 13% from last year. Popular segments include Chicago to Kansas City and Albuquerque to Los Angeles, although over 80 passengers per train take the trip all the way from Illinois to California.
Those are the five trains with the most revenue per train. Now let's look at the five fastest growing routes with more potential for the future.
At the top of the list is the Piedmont in North Carolina. Since adding mid-day service, revenues have grown by 95% and ridership has grown 76%. A federal grant agreement has been approved with the state of North Carolina and the Norfolk Southern Railway that gives the state $461 million for track upgrades, station improvements and new equipment to add a fourth daily round trip between Raleigh and Charlotte. The grant is expected to generate about 4,000 jobs.
http://www.asheville.com/news/amtrack0311.html
Second on the list is the Northeast Regional service to Lynchburg. Now in it's second year, the route has generated 48% more revenue than last year and May ridership increased 43%. Beginning next week, a daily bus will extend service from Lynchburg to Roanoke.
http://www.roanoke.com/news/breaking/wb/291245
Missouri's River Runner comes in third with an increase in revenues of 44% and an increase in ridership of 29%.
Indiana's Hoosier State had a May increase in revenues of 27% and ridership growth of 28%.
Michigan's Blue Water had a 27% increase in ticket revenues and a 22% increase in riders.