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GuestChooChoo
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We should have answers by mid to late next week. Lots of rumors running rampant among OBS, all of which have been thoroughly covered here. Something is definitely afoot in Miami... h34r:
I actually do not believe the CONO rumor for a moment. I believe it to be an armchair speculation rumor given the available concrete info at this moment.Family bedroom is still bookable on the CONO out to Feb 2016. None of those on single level trains.
They're probably betting on the lack of a dining car driving down demand.What am I missing here? Amtrak reduces the cost of sleeper space on the Star by eliminating meals. Wouldn’t that lower price typically drive up demand for space? But then the rumors are they will cut back the supply of rooms by removing one sleeper? Lower the price to increase demand but then reduce supply that then leads back to towards a higher average price. Seems to fail the ECON101 Supply/Demand test.
This assumes of course that the price of sleeper space contributes to a positive Net Income/Cash Flow by whatever “Accounting Method” Amtrak uses. If the Net Income/Cash Flow will be negative at the new price point by all means reduce the supply of money losing space. The Star's low sleeper price then becomes just a Marketing expense, loss-leader like gimmick.
They're probably betting on the lack of a dining car driving down demand.What am I missing here? Amtrak reduces the cost of sleeper space on the Star by eliminating meals. Wouldn’t that lower price typically drive up demand for space? But then the rumors are they will cut back the supply of rooms by removing one sleeper? Lower the price to increase demand but then reduce supply that then leads back to towards a higher average price. Seems to fail the ECON101 Supply/Demand test.
This assumes of course that the price of sleeper space contributes to a positive Net Income/Cash Flow by whatever “Accounting Method” Amtrak uses. If the Net Income/Cash Flow will be negative at the new price point by all means reduce the supply of money losing space. The Star's low sleeper price then becomes just a Marketing expense, loss-leader like gimmick.
The vast majority of today’s travelers are price sensitive not amenity sensitive. If the price point is correct demand will go up. If it doesn’t, it wasn’t priced right. It's not that the customers are holding out for a “free” steak.<assumption: rumor= true>
Which is a safe bet.
Also, the sleeper isn't going away, it's getting moved to the Meteor, so the supply side is unchanged for many city pairs (not all).
</assumption>
There will be a sleeper on the Star. But only one, not two. And no diner but the usual cafe car.Whatever the issue (managerial, operational, political), it needs to be resolved and if customer participation is required to resolve it, we need direction. My husband and I are frequent rail (as opposed to air) passengers mostly by choice, somewhat by necessity. Any LD train without sleepers would not be possible for us as I suspect would be the case with many others.
Do you think there's a nontrivial risk of the Meteor's diner not being able to handle a fourth sleeper, or is there sufficient capacity available?As to only running one sleeper, the issue there is that the cafe would probably be overwhelmed by the passengers from two sleepers (assuming that meals are still included...something that I expect would be retained in some fashion, even if it was some sort of "meal voucher" in the cafe). The Cardinal has run into this issue over the last year, I believe. If they ran two sleepers (or even bumped the train to three sleepers with the new equipment order) they would need the diner to deal with the food demand (though a case would probably exist for trying the "Diner-Club" idea that Amtrak floated in the PIPs...basically, run the train with only a dining car but have an "all-day menu" available outside of the main mealtimes) since a single cafe attendant can only handle but so much traffic (and I've seen some pretty impressive lines in the cafe at mealtimes in an SSL).
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