(Dow Jones Newswires distributed the following on October 7.)
WASHINGTON — Amtrak, in a major marketing shift, is throttling down the aggressive seasonal fare promotions it has been using to raise demand for passenger trains, Tuesday’s Wall Street Journal reported.
The nationwide passenger railroad said the discounts, which slashed coach fares as much as 50% on long-distance trains earlier in the year, succeeded in winning back customers to Amtrak. Passenger demand and revenue increased over year-ago levels during the peak summer season. Now, entering the fall, a slower season for Amtrak, “things are still looking strong for us” said Matt Hardison, chief of sales distribution and customer service at Amtrak.
In January, faced with weak passenger demand and declining revenue caused by the slow economy and travel market, Amtrak cut its basic long-distance train fares in many markets by an average of about 21%. In addition, Amtrak offered seasonal promotions that brought the total savings to as much as 50%.
Customers responded, and passenger demand increased above year-ago levels starting in March. Amtrak spokesman Cliff Black said Amtrak expects to have carried close to 24 million passengers in its fiscal year ended Sept. 30, exceeding Amtrak’s previous record of 23.5 million passengers in fiscal 2001. Revenue was weak at the beginning of fiscal 2003 but started to outpace year-ago levels in July.