You are seriously underestimating the cost of providing the sleeper attendant unless you want the poor LSA to work non-stop 365 days a year. Where he/she would rack up major overtime. I don't know the details of their trip rotation, but to fill that LSA position over the course of a year for 365 trips must take 3 to 4 LSAs on the employee roster. So $300K or more for the LSA position for the Viewliner sleeper car is a more viable estimate.
OK, I dug up some information. Comment #1 is informative:
http://www.economist.com/blogs/gulliver/2012/10/amtrak-food-service
Sooo, the attendants are paid by the hour, $28/hour. This means that *faster trains cost less*.
On the LSL the trip is supposed to be 19 hours west, 20 east. (Call it 21 because of delays.) So: take 21 hours/departure * 365 departures/direction/year * 2 directions == 15330 hours/year. Divide by 3 consists. Multiply by $28/hour. So the attendants for one car (on the LSL) should cost $143080 in wages.
Note that slicing one hour off the runtime is worth ~$6800 per car per year. In wages alone. Delays and slow schedules *hurt* a *lot*.
Here's an attempt to estimate benefits. The same comment suggests 160 hours of work per month for an OBS employee, or 1920 hours/year. The LSL runs for about 15330 hours/year, so each consist runs for about 5110 hours/year. So each car requires about 2.66 employees.
Amtrak claimed in the September 2014 report that "premium based" benefits plus "FELA benefits" averaged about $20,146 per agreement employee, and that "payroll based" benefits cost about 19% of payroll. So $143080 * 1.19 + 2.66 * $20,146 ~= $223853. (I ignored "other benefits" because they're erratic, and actually negative some months.)
So, you can estimate the cost of all the sleeper attendants for one car on the LSL at $225K.
This may be an overestimate. I don't know if the attendants are actually paid to sleep (we can ask FormerOBS...) If they aren't, then this is a substantial overestimate.
You're right that having one attendant handle more rooms is worth a lot, of course. (It's not worth nearly as much as running the trains faster would be -- I estimate one hour less of runtime on the LSL to be worth $219K/year in OBS wages & benefits at current staffing levels. Since it would also increase revenues, it's obviously worth more.)
But the Viewliner sleeping cars *still* have a remarkably quick payback period. With $225K in wages & benefits, and $300K in maintenance & fuel, that's $525K. Except on the Cardinal, each car is generating $1.2 million/year in revenue conservatively. That's $675K/year in profit; with cars costing $2.3 million (the average from the Viewliner II order), that's a
four year payback.
Just for Paulus: suppose that ticket yields drop by *25%*, so that each car is generating only $900K/year in revenue. Suppose that sleepers are far more expensive than the average car in the order at $2.6 million/car (probably a gross overestimate), that's still a
ten-year payback. I think this is overly pessimistic.
(Of course, the expenses should come out different on the Florida trains as well. I haven't run the numbers there.)
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These wage numbers have more of an impact on the dining cars, with their 5 staff members. Figure $300K in fuel and maintenance, $1.12 million in wages & benefits, $350K in foregone revenue from roomettes. Then each dining car somehow has to raise at least $1.77 million in revenue (whether at the table, or from more tickets purchased, or from higher ticket prices) just to break even. This number may be low because of extra maintenance costs on a dining car for the cooking equipment, extra costs for the plates & glasses, higher wages for the LSA, etc.
To get a 10-year payback, the dining car needs to be raising another $230K-$260K/year on top of that, so call it $2 million in revenue per car.
It needs to be attracting a *lot* of passengers to raise that much. Even if we take the assumption of 13.6% of revenue from the LSL -- which really seems much too optimistic even to me -- that's only $4.46 million for 3 consists, or $1.49 million in attributable revenue per dining car.
This barely covers fuel+maintenance+wages+benefits (which is $1.42 million), doesn't cover the lost revenue from staff in roomettes, and never pays for itself.
Cutting staff would help some, but the dining cars are still very expensive to operate. If the dining car could be run with only three employees, I make it out to be $1.18 million in costs and foregone revenue. With a more pessimistic assumption of 10% of revenue -- which is still likely to be too optimistic -- there's only $1.09 in attributable revenue per dining car, so it's still not profitable.
Trying to bend things as favorably as I can to the dining cars, suppose that maintenance + fuel is only $250K, and that three employees are only $650K, and we manage to figure out how to get them out of the roomettes (perhaps by detaching the dining cars at night) -- that's still $850K/car in costs. The payback period is still 10 years or more.
With current operational practices, the dining cars seem to be giving very poor return on investment.
There needs to be a way to run the dining car which generates more revenue per worker. Maybe it still needs 5 workers, but if so, those 5 workers need to be handling
far more customers per day.
It seems that to support a dining car at current wage levels, a train needs to be really, really long, as well as commanding a high premium for the dining service. 6 coaches and 2.4 sleepers (the current LSL) isn't enough. 6 bilevel sleepers and 5 bilevel coaches (the Auto Train) might be enough.
Anecdote time! On my most recent trip, I sat with one woman in the dining car (going from NY to Schenectady in coach) who had just taken the LSL for the first time, having usually taken the Empire Service. She had been startled to discover the dining car; ordered three bottles of wine; and said she was now planning to preferentially take the LSL in the future even when the tickets were more expensive, just to get the food. There's the sort of passenger who the dining car really makes money on!
As for adding at the same prices, I'd be really doubtful of that. We didn't see that with the
Cardinal when it added a second sleeper and I think adding that many more rooms is likely going to result in a major drop to per passenger revenue.
We'll see about that. I think you're wrong.
The Cardinal's extra sleeper has been on for less than a year, and it missed most of the peak months.
The Cardinal is also a particularly extreme case of expansion. My numbers show that salable sleeper capacity was multiplied by 2.36 -- this isn't going to happen on the other trains, where you're getting more like a 1.5 multiplier.
Also, more importantly, there was no advance notice, so people looking six months in advance saw "sold out", which is bound to suppress ridership. Let's look again when it's been running for a year. It'll take some time for people to realize that the sleepers are even *available*, if they're used to them being sold out.
Even with all of this, the yield drop on the Cardinal was 25% in the *first month* -- and within a couple of months it promptly started selling out on the weekends again, so the prices have probably gone up again. I should take a look at the more recent months' numbers, which I haven't.
Prices might drop a bit in the short term -- they probably will, particularly if the added capacity isn't bookable at the usual 11 months in advance. But if prices promptly resume their inexorable climb up, and are back where they were before in about a year, then in my opinion they were pretty much added at the same prices.
Obviously there's some point at which there will be too many sleepers for profitable demand, and so adding more would require substantial, lasting, and detrimental price drops. I simply don't think most of the Viewliner trains are close to that. Maybe the Cardinal is while it's three-a-week, which suppresses demand, but it wouldn't be if it went daily.
However, some of the Superliner trains arguably passed that point long ago, given the typical sleeper ticket prices which are *much* lower per mile. Like,
half as much. The Superliner ticket prices look even lower on a per hour basis, since the Superliner trains mostly run slower than the Viewliner trains. (And wages are paid per hour. Because of labor costs, slow trains are very expensive to run.)
...I'm actually going to amend what Woody said. The cures for what ails Amtrak are (a) more Amtrak, and (b)
faster Amtrak. Because of the dominance of hourly wages in Amtrak's cost structure, slow trains are much more expensive to operate than fast trains -- and of course they get less revenue, too.