A Literature Review of Railway Pricing Based on Revenue Management

Abstract

In recent decades, railway passenger transport enterprises have been exploring numerous operation and management strategies to improve service quality and market competitiveness of railway passenger transport so as to ensure that the interests of railway passenger transport enterprises are maximized when taking social welfare into account. However, there are still shortcomings in the current research with respect to determining the pricing mechanism and formulating a reasonable price. This paper systematically reviews the scientific literature related to railway pricing, focusing on the application of basic price methods, mathematical programming methods, and data-driven methods in railway pricing, with the hope of proposing an innovative direction to solve existing problems. The main subjects involved in the formulation of railway pricing are passenger groups and transportation companies. The research can be conducted from four broad aspects: passenger demand, passenger time value, market segmentation, and the equilibrium relationship between rail service supply and passenger demand. On the basis of absorbing and summarizing the strengths and weaknesses of previous studies, this paper puts forward suggestions for improvement and innovative directions which will help promote railway passenger transport services from the perspective of pricing, thereby enhancing the sustainability of railway transport.

Keywords

• revenue management
• railway pricing
• dynamic pricing
• differentiated pricing
• data-driven