Do Long Distance Trains Really Lose Money

[PRR 60]

Amtrak does not pay travel agent commissions.

 

[Guest]

Amtrak does not pay travel agent commissions.

Amtrak's website says they do.

 

[haolerider]

Amtrak does not pay travel agent commissions.

Amtrak's website says they do.

They do pay commissions.

As far as some of the othe suggestions, they are as poor in logic as others presented. Unless you are familiar with the exact roles and responsibilities of various levels of management, you are in no position to suggest elinimation of positions. The idea that Marketing be eliminated by selling more ads in the on-board magazines is absolutely ridiculous and obviously not well thought out. Printed timetables are a cost effective way to provide information that is needed. They are used and in demand. The cost savings would be minimal and not have a great impact on savings.

 

[PRR 60]

Amtrak does not pay travel agent commissions.

Amtrak's website says they do.

Interesting. I say that because the agents I used for corporate travel added a service charge to amtrak tickets just as they do with airline tickets. Based on that, I just assumed Amtrak had dropped commissions just like airlines had done years ago. That being the case, I agree that dropping commissions is "low hanging fruit" for lowering expenses. I can't imagine the justification for not doing that.

 

[haolerider]

Amtrak does not pay travel agent commissions.

Amtrak's website says they do.

Interesting. I say that because the agents I used for corporate travel added a service charge to amtrak tickets just as they do with airline tickets. Based on that, I just assumed Amtrak had dropped commissions just like airlines had done years ago. That being the case, I agree that dropping commissions is "low hanging fruit" for lowering expenses. I can't imagine the justification for not doing that.

Corporate travel is much different than leisure travel. Corporate operate on negotiated rates and the only leisure travel that does that is wholesale travel. There are still plenty of travel agencies selling Amtrak, so eliminating commissions would not be a good idea, even though you would consider it low hanging fruit. It is a good channel of revenue and the comission is small when compared to other expenses. It amazes me that there is so much discussion about eliminating expenses when the discussion should be a about increasing revenue - which Amtrak has does year after year. There are reorganizations being discussed and we shall see what happens when they occur.

 

[jis]

People who understand the business use a balanced scorecard approach to improve overall performance. People who just pretend to understand the business mindlessly work on cutting expenses until they manage to totally destroy the company. Happens in both private and public sector.

 

[Guest]

Actually, the system timetables and many route timetables are cost neutral or profitable: they contain advertisements.

 

[jebr]

Actually, the system timetables and many route timetables are cost neutral or profitable: they contain advertisements.

Yeah, I remember the Reno advertisement in the CZ timetable.

 

[Ryan]

Unless you are familiar with the exact roles and responsibilities of various levels of management, you are in no position to suggest elinimation of positions.

That's crazy talk.

As you've said yourself (paraphrased) give someone a keyboard and a forum, and they're an instant expert.

 

[Nathanael]

Amtrak is currently engaged in a substantial re-arrangement of management, which is fairly well thought-out. Previous management was organized along "field of work" lines (one hierarchy for mechanical repairs, one for onboard service, one for moving trains, one for talking to customers...) which gives many opportunities for people to blame each other for problems.

The reorganization is going to be more "customer based", with (for instance) everyone in Chicago Union Station reporting to a single station boss, so that if something goes wrong, there's someone at the top who can order *someone* to fix it even if there's a dispute over whose job it is. Likewise, there is going to be a merger of the top-level management for selling tickets, moving trains, and maintaining trains, under the theory that these are really all parts of moving passengers.