blue streak 1 I am somewhat disappointed that no one saw the down side on the Amtrak report. Until Amtrak revenue increases are on the July status report we cannot know the average trip length and total RPMs LD was actually down 0.1% and NEC was only up 0.2%. Ridership on SD was up 6.8% .With the SD riders having all the increases does not compute very well for Amtrak.
I am somewhat disappointed that no one saw the down side on the Amtrak report. Until Amtrak revenue increases are on the July status report we cannot know the average trip length and total RPMs LD was actually down 0.1% and NEC was only up 0.2%. Ridership on SD was up 6.8% .With the SD riders having all the increases does not compute very well for Amtrak.
The NEC was up +2.7% in July. The NEC is up only +0.2% for the fiscal year to date because of the loss in business in late October and the first part of November due to hurricane Sandy.
The LD trains were up +3.8% in July which is a good sign because LD ridership growth has mostly leveled off due to lack of spare capacity for peak travel periods and that Amtrak is close to charging what the market will bear for the LD trains (and the Acela). The delivery of the Viewliner baggage-dorms, sleepers will help bump up the revenue for the eastern LD trains by a modest amount.
There will be a small overall increase in coach seating capacity this year. Oregon will adding the 2 Talgo trainsets to the Cascades service, California has brought 14 Comet 1B coach cars which are being rebuilt by Amtrak for use on the San Joaquin service, and Amtrak has converted 2 Amfleet I café cars to coach cars.
BaltACD Show me the report from ANY organization, public or private, that doesn't accentuate it's positives and minimize it's negatives. That is what publishing reports is all about - polishing the apple.
Show me the report from ANY organization, public or private, that doesn't accentuate it's positives and minimize it's negatives. That is what publishing reports is all about - polishing the apple.
All publicly held corporations are required to file annually a 10K with the SEC. It must contain a comprehensive overview of the corporation's results and a complete set of financials. No apple polishing permitted! The 10K is widely available to the public and may be accessed on-line. In addition, public corporations are required to file an 8Q with the SEC every quarter. It too contains a comprehensive overview of the corporation, as well as a complete set of financials, except the financials don't have to be audited.
Most midsize to large businesses (public and private) publish an annual report. Amtrak puts out a very good annual report. They usually contain lots of pretty pictures, especially when the results are not stellar, and management puts a positive spin on the results. Nevertheless, they must comply with Generally Accepted Accounting Principles (GAAP) and present a fair picture of the business' results.
The business press is full of corporate results, usually 15 to 30 days after the close of the quarter. I read it every day. I am not aware of any major corporation that just announces its sales results without showing a comprehensive picture of its overall results.
Amtrak constantly spins the numbers. For example, it claims its revenues cover 88 per cent of its costs. That is for the consolidated corporation. In fact, train revenues (Amtrak is in the train business) cover 82.1 per cent of the cost of train operations. And that is before depreciation, interest, and miscellaneous items. On a fully allocated basis, which includes depreciation, interest, and miscellaneous items, Amtrak's revenues cover 64. 8 per cent of the fully allocated costs.
Amtrak's monthly operating reports contain comprehensive numbers, but I suspect few people know about the reports, and even fewer know how to read and interpret them. Moreover, Trains forum participants are not compelled to present just one side of the story.
In an era when people are demanding more transparency from the nation's major institutions, it behooves Amtrak, as well as others, to tell the complete story.
Never too old to have a happy childhood!
blue streak 1 I am somewhat disappointed that no one saw the down side on the Amtrak report. Until Amtrak revenue increases are on the July status report we cannot know the average trip length and total RPMs LD was actually down 0.1% and NEC was only up 0.2%. Ridership on SD was up 6.8% .With the SD riders having all the increases does not compute very well for Amtrak. LYNCHBURG increases of 14.7% may help balance out the other shorter distance route trip ( ex NH - Springfield ) lengths This may mean that RPMs may well be down from 2012 and average trip length down as well. http://www.amtrak.com/ccurl/669/543/Amtrak-Record-Most-Passengers-One-Month-ATK-13-086,0.pdf
LYNCHBURG increases of 14.7% may help balance out the other shorter distance route trip ( ex NH - Springfield ) lengths
This may mean that RPMs may well be down from 2012 and average trip length down as well.
http://www.amtrak.com/ccurl/669/543/Amtrak-Record-Most-Passengers-One-Month-ATK-13-086,0.pdf
I don't pay a lot of attention to Amtrak's communications regarding ridership. As is the case with most of their public announcements, they present just part of the story. The part that makes Amtrak look good. They should tell the whole story, which is what they would be required to do if they were a listed corporation. They should publish the numbers for ridership, customers, costs, etc.
Actually, the increase in the State Supported and Other Short Corridor Trains is good news. This is the future for Amtrak. In some respects, if managed properly, i.e. forget about the cost of supposedly true high speed rail, whatever that means, the short corridor trains outside of the NEC could be a better financial bet than the NEC. These trains are not that far from covering all of their costs whereas the NEC has a long slog because of its extensive capital investments.
blue streak 1 I do not disagree with you about the importance of marketing, Streak. But I do think that in fairness it needs to be pointed out that current ridership was obtained with current marketing efforts. John IMHO it appears that Amtrak marketing has the attitude that its trains sell themselves. Well that is not a reality. If we use Don Oltmann's example. The Crescent stays nearly sold out ATL - WASH even when the Lynchburg service began and took away most of the LYH - NYP passengers. But there has been no effort to sell ATL - New Orleans other than reducing fares somewhat. Now not to completely knock Amtrak they are now sellling WASH - intermediates - NYP on a couple of the long distance trains. Meteor & maybe Palmetto Probably because of high regional loads at their scheduled times ? All the many legs of each train that have low loads need marketing but I have never seen any. Have others seen any ?
I do not disagree with you about the importance of marketing, Streak. But I do think that in fairness it needs to be pointed out that current ridership was obtained with current marketing efforts.
John
As per the Brookings study referred to in previous posts, Amtrak saw the ridership largest increases in its NEC and State Supported and Other Short Corridor trains.
The average load factor for the NEC in FY12 was 52.3 per cent, with the Acela coming in at approximately 62 per cent and the regional trains hitting just over the 48 per cent mark. The state supported trains had an average load factor of 43.0 per cent. These numbers don't suggest that seat availability is an issue on most days for most of the corridor trains.
Clearly, there are days when Amtrak sells out. But given the overall numbers shown above, they don't sell out that often. Moreover, without knowning how many passengers are turned away completely, as opposed to how many take another train in the case of multiple daily schedules over the same route, or choose to travel on another day, it is not possible to determine whether adding additional seats would generate even more riders. Unless Amtrak gives the ride away, which it nearly does in some of the state supported markets.
Amtrak spent $98.1 million on Advertising and Sales in FY08. Marketing is embedded in this cost. The spend in FY09 was $106.2 million, followed by $113.7 million in FY10, $113.2 million in FY11, and $78.5 million in FY12. Amtrak has reduced its Advertising and Sales spend well below where it was in FY08. A number of reasons may have contributed to this trend. The advertising and sales spend has generated the expected results: Amtrak is getting all the incremental passengers its can handle, although again the numbers on most of the trains don't suggest this is the case, or it has reduced significantly its advertising and sales spend because of pressure from Congress to control its expenditures.
John WR As far as marketing is concerned, the present records were set with present marketing practices. It would certainly be good to see improvements in marketing.
As far as marketing is concerned, the present records were set with present marketing practices. It would certainly be good to see improvements in marketing.
But marketing has not been needed to sell the very limited seating. What happens when there is a 20 - 30 % increase in available seating ?
I agree, Streak, that the simple lack of enough passenger cars is a real problem for Amtrak.
As far as marketing is concerned, the present records were set with present marketing practices. It would certainly be good to see improvements in marketing. But so far that has not been the actual problem.
The reports are that on the Empire Builder equipment is so short that people are being left behind because of lack of seats.
This is positive news. However there will be difficulties to further increase these gains.
1. The max atation -station load factor for any train route will limit summer gains till more passenger cars are available.
2.. Amtrak will have to do more off season marketing to increase loads for those months to continue increases. Amtrak has not demonstrated any real ability to sell itself.
3. The first new viewliner-2 cars delivered being sleepers will only increase loads slightly.
4. Until the midwest bi-levels are delivered there cannot be an increase in coach capacity.
5. Once new car capacity increases then Amtrak marketing.will have to get on the ball.
Amtrak has now set 12 consecutive monthly ridership records. The most recent one is for July, 2013. Both number of riders and revenues are up. the news is all over the internet as well as on today's Newswire. Googling on Amtrak ridership will provide a list of hits. One, Amtrak's own news release, is here: http://www.amtrak.com/ccurl/636/294/Amtrak-Sets-New-Ridership-Record-FY2012-ATK-12-092.pdf
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