A Study of Differential Pricing Schemes for Taiwan High Speed Railway
Jenny Jung-Tzu LIN
Prof. Lawrence W. LAN
|關鍵字:||高速鐵路;運價;差別定價;high speed rail;fare;differential pricing|
The target for commencing the operation of Taiwan High Speed Rail (THSR) is around the corner. Therefore, setting up reasonable and competitive fare schemes to attract larger amount of passengers as well as to achieve specific operational goals and objectives are urgently important to the THSR operator. This thesis attempts to evaluate different fare schemes under various differential pricing strategies, from operator’s perspectives. The study begins with a review of pricing literature and fare practices in different transport industries. Various differential pricing strategies, including spatial, temporal, quality, quantity, and bundled strategies, are proposed on the basis of THSR market characteristics and main customer groups. Corresponding to each differential pricing strategy, a specific evaluation system structured by goals, objectives and criteria with various differential pricing schemes is formulated. An interview survey with some focus groups is conducted to assess and prioritize the proposed differential pricing schemes. The survey indicates that under spatial differential pricing strategy, the routes with more frequent-stop should offer 10 to 25 percent discounted fares from those with less frequent-stop so as to balance the patronage among different route categories. Under temporal differential pricing strategy, a 20 percent discount off-peak fare can be considered in order to stimulate the off-peak demand as well as to mitigate the peak-period crowdedness. Under quality differential pricing strategy, business-class fares should be set higher, but not exceeding 120 percent, than the economy-class fares to encourage the usage of business-class. Under quantity differential pricing strategy, a frequent rider program with once free-ride per thousand-mile of travel or offering the round-trip passengers with 10 percent discounts from the single-journey fares can be introduced to increase the customers’ loyalty. Under bundled pricing strategy, a tour package with 20 percent discounted fare or free transferring to local public transit can be considered to enlarge the THSR market share. The results of this survey provide useful guidance for the THSR operation in setting up proper differential pricing schemes under different pricing strategies.