Rail transport is reinventing for the digital age
October 10, 2018
October 10, 2018
New players with disruptive technologies are gaining traction. As the pace of commercial decision-making gathers speed, dynamic pricing is rapidly becoming the norm to compete. So, the race is on for freight and passenger operators to optimize pricing models to drive profits.
Dynamic pricing is about optimizing a key business outcome—typically revenue-related, but it could also be focused on customer service and satisfaction, capacity control, or other factors. Just as each company has its own competitive strategy, each has its own unique pricing strategy. The drivers used to determine price will vary for each company—even within the same sector—and be applied to differing degrees depending on the specific needs of the business.
As transport reinvents, disruptive digital tech—the Internet of Things (IoT), smart products, real-time intelligence and connectivity plus artificial intelligence and data analytics—will form the backbone of rail and transit travel.
Reinventing rail pricing strategies:
While there are specific challenges, companies in both the passenger and freight sectors share multiple opportunities to accelerate the shift to modern pricing capabilities.
The shift to today’s customer-focused pricing is part of a transformation approach designed to systematically manage massive amounts of complex, real-time data to enable accurate forecasting, improved recommendations and dynamic capabilities, optimized to drive up profits.
Focus on customer centricity
Create an enterprise approach
Drive value with elegant simplicity
About the Authors