Pricing Strategy

A Regional Transport Operator needed to understand the impact on passenger revenues from ticket category price changes also required a strategy to attract passengers to the network.

Context

This transport company, operating in a regional market where numerous alternative modes of transport are available to passengers, was concerned previous annual price changes had overly impacted passenger numbers and decreased margins.

The ask

Our client wanted to understand how passengers had reacted to ticket category price changes and the revenue impact. They also wanted a competitor analysis and strategy to positively influence future pricing decisions and passenger numbers.

What we did

Faced with imperfect point of sales information and that all ticket category price changes occurred once, annually,

 

Flourish gathered and  analysed several years of ticket sales and revenue data. We devised an innovative way of unraveling the complexity in determining if passengers were switching ticket category or switching transport modes. Assessing the revenue performance.

 

We performed market analysis on passenger behaviors and competitor transport modes and then evaluated value options to attract passengers to the network while delivering revenue and costs benefits to the client.  

Outcome

Presenting our report findings and strategy, senior board members welcomed the news that ticket revenues were healthy, while work on marginal revenues was required in the increasingly competitive market.

 

A series of promotional ticketing campaigns, targeting key operating times and passengers, was proposed with projected outcomes. This was to be aided by a recommended improvement in Point of Sales data processing.

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