If they get their way I think you may see some differing levels on trains like the Zephyr. But probably just a “normal” and “fancy” option if they end up doing it.
SouthernRailway wrote: ↑Sat Jan 18, 2020 3:34 pm Didn't Amtrak learn the benefits of market differentiation through its Silver Starve experiment?Amtrak's goals with the experiment with the Silver trains were two fold, lower food costs, increase ridership (total for both trains), and increase profits (total for both trains). I'll admit I do not know what the data of the experiment was, but as a casual observer the Star kept two sleeper cars while the Meteor kept three sleeper cars. Amtrak never had to pull one sleeper car from the Meteor to add to the Star. Ridership remain basically the same between the two trains. All that changed for all practical purposes was the higher operating profits on the Star due to the lower food costs. Obviously, the slightly higher ridership on the Star did not match the slightly lower fares. Amtrak has since changed the food service model on the Meteor that saves food service costs - and the Star is now going to the same new model the Meteor is using now.
Low cost sleeper services attracted a lot of customers.
But normal-cost sleeper services also generate significant revenues.
So LD trains should have a range of classes of services, to attract the most customers and revenues:
1. Budget sleeper (no meals included)
2. Normal sleeper (regular meals included)
3. Fancy sleeper (lavish meals and drinks included)
And with some marketing, even more people would ride.
Bottom line, Amtrak found a way to reduce food service costs that they did not also have to lower fares. That's a win-win situation for Amtrak, although not for its customers.