Key Capabilities of Rail Revenue Management:
- Forecasts demand for each of your market segments
- Manages price and product availability to help maximize revenues and profits
- Allocates inventory so that you ensure availability for your most valuable customers and avoid empty seats on services for which sufficient demand existed
- Reacts to competitive changes in the marketplace
- Monitors performance and measures your success
Rail Revenue Management helps rail operators forecast passenger journey demand on every train operation in order to set the optimal quota of seats available at the optimal fare at the right time. With railways competing head on with airlines on key routes, railway passengers now expect the prices offered by rail operators to compare favorably with airline competitors. Revenue management for the rail industry therefore must be able to manage complex origin and destination optimization, as well as generate optimal prices within regulatory guidelines with the objective of maximizing overall profitability.
Similarly, optimal price changes need to be effected more rapidly and with a greater level of granularity to reflect the price sensitivity of micro-market segments. JDA Software enables you to evolve from traditional revenue management to the science of pricing with our next-generation Price-Sensitive Revenue Management solution.
JDA’s Revenue Management solution for the rail industry generates detailed demand forecasts for each origin and destination pair, recommends the optimal allocation of demand to capacity and appropriate inventory controls, and allows operators to frequently update their prices in reaction to market trends.
