(The following story by Jane Engle appeared on the Los Angeles Times website on June 26, 2010.)
LOS ANGELES — My partner and I recently thought it would be fun to take Amtrak from Los Angeles to San Diego and back, about 130 miles each way, for a getaway. But the cost, more than $120 total for two, nixed that plan, and we drove our Prius instead. Our gas tab for the trip was about $20.
Why are Amtrak fares that high?
In an interview in Los Angeles last week, Joseph Boardman, president and chief executive of the subsidized inter-city passenger train operator, defended his company’s pricing.
“The taxpayer expects us to charge what we need to charge,” he said.
As it is, fares cover only about 70% to 80% of Amtrak’s operating costs, such as labor, according to Boardman, leaving nothing for capital outlays such as new equipment, which he said is “desperately” needed. In fact, the president said he would like to replace all of Amtrak’s equipment by 2023.
“We have diner and baggage cars older than I am, and I’m going to be 62,” he said.
To keep up with costs, Amtrak is taking a page from the airlines, which typically increase fares as seats grow scarce near departure. Book ahead and you win; book late and you lose. Fares hit a high point on holidays and other popular dates.
“We’re trying to do more management of revenue and maximize what we charge,” Boardman said.
One example: A Los Angeles-San Diego round-trip on the Pacific Surfliner cost $88 over Fourth of July weekend (July 2-4), compared with $62 for a midweek round trip in the fall (Sept. 13-15) when I checked fares on Amtrak’s website this week.
Plenty of passengers don’t seem to be put off by the prices, judging by Amtrak’s growing ridership, which is on pace to set a new record. For the six months ending in March, 13.6 million people rode the company’s trains, up 4.3% from the same period a year ago. An improving economy and continued high gas prices may be boosting those numbers, Boardman indicated.
Next: What’s next for rail in the West