Redesigning the Ticket Offering of a Railway Undertaking

In the light of differentiated customer needs, it is of increasing importance for transport companies to continuously develop their own ticket offering and to critically reflect it to-gether with its underlying fare structure. The advisory task commenced with a comprehen-sive SWOT analysis of the current fare landscape. This involved a critical examination of the current product portfolio and the pricing on which it is based. In a second step, a cus-tomer and potential segmentation was performed based on the current market and cus-tomer structure.

Ensuring an optimal interaction between fare elements

Designing the fare structure, a holistic approach allowed for an ideal interaction between the ticket range, the fare conditions, the distance tables and the price function of the rail-way company. To this end, the following individual steps were carried out:

  • Review and prioritisation of the economic, strategic and technical objectives related to the fare optimisation
  • Definition of the procedures and responsibilities for future price control
  • Selection of considered mechanisms for price differentiation
  • Evaluation of an introduction of new fare products, e.g. to increase the attractiveness from a customer perspective
  • Preparation of the implementation in systems and sales


Including the customer perspective and a detailed communication strategy

Subsequently, the approaches for the (re)design of the fare structure underwent a review from customer perspective and from an economic aspect. As part of a market research, first assessments on the changes in the product range were polled in focus group inter-views among the customers of the railway undertaking, while the economic impact and the expected migration and cannibalisation effects between the various ticket types were dis-played in a simulation tool.

The implementation of the changes in the fare structure was strategically supported by a time schedule for the introduction and elimination of ticket offerings and relevant changes in the fare conditions. To ensure the greatest possible acceptance of the fare changes, it was suggested to develop comprehensive benefit arguments for the different stakeholders in the context of a communication plan.

19. February 2016