Revenue management method and critical techniques of railway passenger transport

Abstract

PurposeRevenue management (RM) is a significant technique to improve revenue with limited resources. With the macro environment of dramatically increasing transit capacity and rapid railway transport development in China, it is necessary to involve the theory of RM into the operation and decision of railway passenger transport.Design/methodology/approachThis paper proposes the theory and framework of generalized RM of railway passenger transport (RMRPT), and the thoughts and methods of the main techniques in RMRPT, involving demand forecasting, line planning, inventory control, pricing strategies and information systems, are all studied and elaborated. The involved methods and techniques provide a sequential process to help with the decision-making for each stage of RMRPT. The corresponding techniques are integrated into the information system to support practical businesses in railway passenger transport.FindingsThe combination of the whole techniques devotes to railway benefit improvement and transit resource utilization and has been applied into the practical operation and organization of railway passenger transport.Originality/valueThe development of RMRPT would provide theoretical and technical support for the improvement of service quality as well as railway benefits and efficiency.