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North Yorkshire Moors Railway General Discussion

Discussion in 'Heritage Railways & Centres in the UK' started by The Black Hat, Feb 13, 2011.

  1. 21B

    21B Part of the furniture

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    I think whatever you paint the logo on it’s a pretty dreadful idea, and one which isn’t likely to enhance the brand image of the company or the NYMR. Naming the locomotive and placing advertising within the carriages, that might work, but I can’t see this being well received by the public im all honesty.
     
  2. Steve

    Steve Resident of Nat Pres Friend

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    The railways SMT have lost the plot in their desperate attempts to improve the bottom line. What has happened to the railways heritage and living museum that they keep bleating on about?
     
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  3. 5944

    5944 Resident of Nat Pres

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    With current rate of funding, the loco won't steam before 2038 anyway. Plenty of time for a few changes of management before then.
     
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  4. Pete Thornhill

    Pete Thornhill Resident of Nat Pres Staff Member Administrator Moderator Friend

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    Just been catching up. This post did make me chuckle, in part due to stating the obvious but also the naivety of the rest of the quoted bit.

    Unless I’m mistaken nobody actually knows of the returnees what percentage would have come back anyway as paying passengers, making it somewhat impossible to actually gauge the impact.

    Reading the statement about a £400k contribution reminded me very much of the old saying “Turnover is vanity and profit is sanity” and it stuck me as very much not understanding business economics. It could have brought in £1 million but lost £1 million in revenue meaning in reality the railway is in no better position than it was before. That might be an extreme example but I guess you would be shouting about how it brought in £1 million in additional income but blindly ignoring that the real figure that mattered was the additional profit it generated, which you don’t know as nobody does and in my (admittedly extreme) example would be ZERO.

    Then there is this -
    Jeez, what next, renaming Grosmont as the Utilita Station, Grosmont if we are doing sponsorship with stations announcements sponsored by We buy any car?

    It would appear so. The signs were there earlier this year with the bizarre swing in pricing followed by then doing cheap tickets on the discount site, who of course also take a cut meaning effectively a double discount and receiving less income per head than before the Gift aid scheme came into play.

    I’m sure we will be told though that the discount site brought in x amount of income and it cannot be disputed :rolleyes:
     
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  5. Steve

    Steve Resident of Nat Pres Friend

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    I may have said this before pages ago but talking to a friend a while ago they said that he and his wife would usually visit the NYMR three or four times a year but they have gone more this year using the 12 month gift aided ticket. Based on their example the railway would normally have got 6x£49.50 = £297.00 in fares but actually got £99.00 + £24.75 =£123.75, a ‘loss’ of £173.25 I wonder how many people similarly would normally have travelled more than once and paid the full fare? I’m told that there is one person who has travelled over 100 times using his 12 month pass. Even if he would have only travelled twice under previous circumstances it’s still a loss of revenue.
     
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  6. 35B

    35B Nat Pres stalwart

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    I stand by my view that it’s the averages that count, not the specifics. But what @Lineisclear said recently suggests strongly that, once the scheme bedded in, those averages didn’t work for the railway.

    The change of policy for Gift Aid eligible fares wasn’t therefore bad in itself. But combining it with a material price hike, restricting the availability of intermediate fares had a predictable result. Changing horses mid-year was the right thing to do - but the way it’s been done doesn’t give confidence in the strategic direction. This sponsorship opportunity reinforces that sense of panic - that cash is all that matters. Were I approached as a potential sponsor, I’d then be very keen to explore how that sponsorship would be used, and how my name would appear - and when.
     
  7. 21B

    21B Part of the furniture

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    If I thought plastering a company name on the side of an engine was a good way to go I think I would have made targeted approaches to a few companies rather than advertise publicly like this the opportunity. It does rather lend an air of open desperation which I think might be unhelpful.
     
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  8. Jamessquared

    Jamessquared Nat Pres stalwart

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    Maybe key locations around the railway could sell naming rights, like they do for sports stadiums?

    "The North Yorkshire Moors Railway welcomes you to the Sports Direct Train Shed - presented by Betfair - here in Pickering. We hope you have a pleasant day with us. We're all just waiting now for the Tissot Timing clock to count down to departure time, when the ref, sorry guard, will blow his whistle and we'll be on our way. But before he does, perhaps you'd like to take a bet on whether we'll reach the summit today? Recent form has been patchy, so our presenting sponsor Betfair is offering 4-1 on needing a blow up before Goathland. And what's more, bet £10 or more and get a free bet on whether your onward journey to Whitby will be hauled by steam or diesel - with those odds you can't lose!

    [Remember to bet responsibility, and set yourself limits. When the fun stops - stop]."​

    Tom
     
  9. Pete Thornhill

    Pete Thornhill Resident of Nat Pres Staff Member Administrator Moderator Friend

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    What’s frightening with your example is you only need 2308 couples to do the same and and you’ve wiped out the £400k completely. How many passengers does the NYMR carry these days? It’s scary to think that on 46000 passengers that’s only a change in 10% to completely wipe out the gift aid. Of course, the higher the passenger figure the lower that percentage becomes - at a guess well below 10%

    There is secondary spend but I’m not convinced that would get anywhere near covering the loss from fares, especially on a railway that effectively operates as a park and ride to Whitby with limited opportunities to obtain the secondary spend income.

    Ir can’t be disputed the gift aid scheme brought in £400k of income but can be disputed it had any benefit or indeed any positive effect. Increasingly it’s looking like it had the opposite effect.
     
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  10. Pete Thornhill

    Pete Thornhill Resident of Nat Pres Staff Member Administrator Moderator Friend

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    I already made that comment lol!!!

    It does make you wonder where you draw the line though doesn’t it, personally I’m in the it smacks desperation camp myself.
     
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  11. 35B

    35B Nat Pres stalwart

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    Why not go the whole hog, following Swiss precedent - https://rail.pictures/picture/45161
     
  12. Sulzerman

    Sulzerman New Member

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    If GA was £400k, that would be £1818 per day, over 220 days of the season. The equivalent of 36.7 people per day, or just over half a carriage. 18.5 people per outward morning departure ex Pickering to Whitby.
     
  13. Pete Thornhill

    Pete Thornhill Resident of Nat Pres Staff Member Administrator Moderator Friend

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    Indeed another way to look at it and come to the conclusion it was a failure….
     
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  14. std tank

    std tank Part of the furniture

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    Haven't you got your sums wrong? Gift aid is 20% of the fare, not the full fare.
     
  15. Pete Thornhill

    Pete Thornhill Resident of Nat Pres Staff Member Administrator Moderator Friend

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    No, because the gift aid brought in £400k so despite being 20% of the fare the equivalent figure vs possible loss of income is at 100% so the calculation would be correct for that purpose.
     
  16. Brunswick Green 2

    Brunswick Green 2 Member

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  17. 35B

    35B Nat Pres stalwart

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    Just checking the logic, your suggestion is that if there were 8,074 (220 * £36.70) "repeat" journeys made on the GA ticket, that would wipe out the £400k made in Gift Aid?

    If so, then the calculation also needs to consider how many of those were journeys that would have happened anyway (as in the examples from @Steve), and how many came about because of the opportunity of free travel.

    As I've argued before in a slightly different context, the assumption that all of the reuse was income foregone risks ignoring both the encouragement of return visits because they're effectively free, and also the encouragement of any visit at all because of the potential of reuse.

    My hunch, reinforced by the arguments about the risk of overcrowding on a 5 day railway, is that the £400k was an initial upside, at least fully eroded by reuse later in the season and into the following season, but I suspect the numbers are complicated.
     
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  18. Pete Thornhill

    Pete Thornhill Resident of Nat Pres Staff Member Administrator Moderator Friend

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    My interpretation was far simpler than that of this particular calculation.

    £400k worked out at the equivalent of how many fare paying passengers per day over an operating season.

    In that scenario the question of how many may or may not paid doesn’t come into it but is simply a measure of the gain of the income expressed as a loading per train. Another way to look at it is that another 8074 fare paying passengers had been generated it would have created the same income without the potential to cancel out any income at all.

    As you point out (and was a point I made in my earlier post), it’s not as simple as suggesting everyone would or would not have travelled if the free return travel offer hadn’t existed and equally due to factors such as secondary spend (possibly higher on a free visit) it’s not really possible to say that the 8074 journeys would wipe out the gift aid entirely but that was my other earlier point - nobody actually knows the effect as it’s unknown how many would have returned and paid, and for that matter how many who like me live a long way away felt the price was too high and decided not to visit at all, to my knowledge that information doesn’t exist making real analysis impossible.
     
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  19. Gladiator 5076

    Gladiator 5076 Resident of Nat Pres

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    However just because it has not been done before does not mean it will not.
    Think F1, Cycling and even test cricket where you would have thought the old fogies at Lords would have put a stop to it.

    So who would become the UAE Cycling Team of the Heritage Railway World with a budget so large they could snaffle all the best locos.

    My take on the top 3 (with sincere apologies to those with no interest in Cycling)

    UAE Bluebell or GCR
    Visma The other one of the above
    Red Bull Bora MHR,ELR, or NYMR
     
  20. Sulzerman

    Sulzerman New Member

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    How much is Tornado per day? Tomorrow there's 67 on the morning departure and 21 on the afternoon. The full price is £30 for a Pickering to Grosmont return.
    The railway is shown as closed today on timetables but it's now open just for these trips. If I travel tomorrow I can save £19.50 rather than visiting on Saturday and paying the standard fare.

    That's how to make money, not!
     
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