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Charter Train Price Increases

Discussion in 'What's Going On' started by tromba, Feb 20, 2014.

  1. tromba

    tromba New Member

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    RTC already put out a notice a few weeks ago announcing a percentage price increase on all bookings on their UK tours past 31st Jan (forgive me if I got the date slightly wrong).

    Is this in preparation for the new pricing structure in CP5?

    If so, can we expect to see similar increases from all the other tour companies? If so, this will push a significant amount of standard class seats extremely close to, or in some cases past the 100 "glass ceiling". Is this going to see a significant decrease in enthusiasts who travel on multiple trains per year?

    Should Dining passengers effectively subsidise the Standard passengers by raising prices at one end of the train and not at the other?

    It has long been said that if Dining is full, the train will run no matter how many Standard seats have been sold, however the reverse is not true.

    Any thoughts?
     
  2. RalphW

    RalphW Nat Pres stalwart Staff Member Administrator Friend

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    It's a myth. I don't know who first said that, but it's been refuted many times, yet people still trot it out as fact.
    Dining and first class looks expensive but the difference in income from a full first class coach and a full standard is very little when taking into account the extra capacity of standard. The extra cost for the dining is not what some think, all profit, the catering staff, whether in house or contract, all have to be paid and after the food is taken into the calculation the profit per seat is not a lot more that non dining 1st.
     
  3. Spamcan81

    Spamcan81 Nat Pres stalwart

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    Small extra profit or not, there is one and whilst I don't expect any tour operator to reveal commercially sensitive information, it must be sufficient to make the provision of dining worthwhile.
     
  4. Pete Thornhill

    Pete Thornhill Resident of Nat Pres Staff Member Administrator Moderator Friend

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    Or it could be to expand the potential market for the tours rather than purely profit driven.
     
  5. Spamcan81

    Spamcan81 Nat Pres stalwart

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    There is that of course. Seems an expensive way of doing it though.
     
  6. RalphW

    RalphW Nat Pres stalwart Staff Member Administrator Friend

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    Well yes it is worthwhile, but the continued assumption that it doesn't matter if a couple of standard class coaches run empty is laughable, if only people realised how tight the margins are. The OP obviously does not.
     
  7. buseng

    buseng Part of the furniture

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    Not to mention all the uncertainties that go with steam tours these days, route/loco changes. Or more importantly- box involvement in some shape or form.
     
  8. david1984

    david1984 Resident of Nat Pres

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    I suppose as well as costs you also have to consider demand, is there more for some classes than others ?, I'm unlikely to ever do a tour that doesn't feature Standard class as I prefer to make my own arrangements for food at the destination, and there's the buffet for during the trip.

    The main concern at the moment is costs across the board are slowly rising (hence most promoters prices slowly creeping up), but wage are not, what this means in real terms is probably someone in the past who did 4/5 tours per year may have to cut back to 2/3.
     
  9. Big Al

    Big Al Nat Pres stalwart Staff Member Moderator

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    A coach is a coach from the point of view of weight behind the loco. If it is full then the ticket price is worked out so that the revenue (without food) is roughly the same for Premier/First as for Standard. So filling a coach up with fewer people who pay more is the same as a greater number of people paying less. The difference is that to make it work in Standard you need to capture more folk. Presumably it's been worked out that the market is better for people who would enjoy a more luxurious day and pay more compared with the enthusiast type traveller.

    If the price goes up then I will do less trips. But the market is not targeted at me (or many on this Forum I suspect). We make up the numbers and are an important part of the calculation. The issue for all operators is if the demand for Premier and Dining falters. That's why they all need to keep us sweet as well.
     
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  10. ADB968008

    ADB968008 Guest

    Oh i think he does… more than all of us ;)

    Maybe the OP could tell us a bit more about CP5..

    As for revenue it's not that hard to work out..

    Mark 1 TSO = 64 std
    Mark 1 FO = 48 1st

    Using RTCs Peak Forrestor tour...

    £94 x 64 std = £6016
    £130 x 48 1st = £6240

    Difference between 1st and Std is £224 worth of Sandwiches, Danish Pastries & Coffee for 48 people..or £4.66 per person..
    That means the rest of the £36 fare difference (£31.34) goes to WCRC for providing a coach with a bit more walkway space and a comfy seat.

    For the promoter.. the risk on the sandwich budget is mitigated by the need to sell 16 less seats to get the same level of revenue for a coach.

    1st is just a differentiator for the public, not a revenue generator.

    Now for Pullman..

    Met Cammell Pullman holds 36 seats..

    £209 x 36 PUL = £7524
    The difference between std and PUL is £1508 or £41.88 per person for that 3 course dinner and breakfast.
     
  11. ADB968008

    ADB968008 Guest

    here's the comparison of the winter cme

    £79 x 64 std = £5056
    £129 x 48 1st =£6192 ( diff to std = £1136 / 48 = £23.66)
    £189 x 36 Pul = £6804 (diff to std = £1708 / 36 = £48.55)

    In this case selling 1st class clearly pays off.
    Given 1st class hasn't risen, and the difference in revenue between std and pullman (£41 vs £48) is pretty minimal, could we see the end of 1st class and focus on Pullman and Std only.
    The problem with this is the need to sell more seats in Std...
     
  12. Big Al

    Big Al Nat Pres stalwart Staff Member Moderator

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    Yes I did the sums myself before #9. At the risk of being controversial, I would suggest that if a tour operator could be confident that the train would fill with just First and/or Dining patrons then they wouldn't bother with Standard. Ditto if they knew that they could fill it with just Standard. To offer both gives them more options. But we know that the balance between First and Standard varies according to demand. And then there is the practical matter of 'all dining' trains probably needing two kitchen cars. An alternative is to pre-prepare a considerable amount of the food in on-site kitchens before loading on to the adjacent train (as happens with the British Pullman).

    Also to be further controversial, I honestly think it is a risky business providing meals on a train and then pitching it as top quality cuisine. My on-board dining knowledge is not from this country but I've heard and read enough about the SD/RTC experience to know that the package is more about the dining experience on the move rather than a culinary delight - good though it may usually be. If you want top quality food, then go to the right restaurant.

    My guess is that there is an optimum number of diners that can be handled on any charter. To go beyond that runs the risk of "quality - drift". So in pricing a charter, I am sure that it is not straightforward. If the prices are going up then I am also sure that the operators know the risks, will be careful and not try to fleece the public.
     
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  13. Bean-counter

    Bean-counter Part of the furniture

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    Second Class Met Camm Pullmans have 42 seats, not 36 (count the windows - 7 x 6 seat bays)!

    (I thought it was 36 for a good while).

    Steven
     
  14. malc

    malc Part of the furniture

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    Mark 1 FOs and the Met Camm Pullamsn which are sometimes used vice FOs both have 42 seats, so ADB968008's calculations should be...

    £79 x 64 std = £5056
    £129 x 42 1st =£5418 ( diff to std = £362 / 42 = £8.62)
    £189 x 42 Premier= £7938 (diff to std = £2882/ 42 = £68.62)
     
  15. Jamessquared

    Jamessquared Nat Pres stalwart

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    Presumably what is important is net profit per coach, once you have taken out the costs of providing food extra on the dining coaches. In other words, to take the example above, the extra £2882 on a premier coach over standard has to cover the cost of providing 42 meals, including staff etc. I suspect there isn't a vast difference in profit per coach when looked at like that (and £362 on a first class coach looks very thin if you get anything "extra" than about one cup of coffee in a day!)

    That said, assuming broadly each coach provides an approximately equivalent level of contribution to the train (that then goes towards the fixed overheads, i.e. loco hire, track access charges, marketing etc), then I'd have thought it makes business sense to have a mix, rather than concentrate all on one class, since it broadens the market base and to some extent will insulate you from changes in spending patterns those markets.

    Tom
     
  16. John Petley

    John Petley Part of the furniture

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    I think that the British Pullman offers food as good as you'll get anywhere. I've never had any complaints with my experiences of premier dining on either SD or RTC either. although not up to British Pullman standards, they compare favourably with dining on the Eurostar and even more favourably with a meal I once had on a French TGV. I've certainly had far worse food in some restaurants.

    Talking of the French, I believe I read somewhere that good quality dining is viewed as an essential part of any French main line steam excursion!

    I'd be interested if any older forum members can remember sampling food in Pullmans when they were in everyday service (Bournemouth Belle, Golden Arrow, etc). Was it as good as what's on offer in today's British Pullman?
     
  17. Spamcan81

    Spamcan81 Nat Pres stalwart

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    My partner treated me to a trip with RTC for my 60th. She booked us in premier dining and it was most enjoyable. She was impressed and on the food front my lady is not easy to please.
    Never travelled Pullman in BR days but did dine in the up Talisman once and that was pretty good. Can't compare it to the British Pullman though as I've not done that.
     
  18. Big Al

    Big Al Nat Pres stalwart Staff Member Moderator

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    I once enjoyed a continuous breakfast (or two) in the restaurant car all the way back from Heysham into Euston courtesy of someone in our party knowing the chief steward. The ride quality was what stood out and that's the point about the
    ride and food combination, I guess, in Premier dining. That said, the ride on the First Class cushions in Mercator (MNLPS support coach) takes a lot of beating especially because of what's only a few metres away from you, and that's without counting the refreshment service!
     
  19. simon

    simon Resident of Nat Pres

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    True but you also have to add the margin on the wine beer etc. that will have a marked impact on the profitability of the dining crowd.
     
  20. Spamcan81

    Spamcan81 Nat Pres stalwart

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    Give standard class a decent selection of ale and some of us would do our utmost to double the profits. :)
     
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