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Fare Increases 2013-2014
http://www.nationaltransport.ie/news...vice-delivery/
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"Any fare increase needs to increase income, not decrease it."
Not if demand is price-elastic, in which case total revenue will fall when the fare rises. Think about it: if a 5% increase in fares reduces numbers travelling by more than 5%, then revenue falls. |
Problem is a review of data shows revenue has increased despite small drops in passenger numbers
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The thing with this increase is that is hitting the more inelastic demand much worse. This, in my opinion is extremely cynical. Yes it will probably increase revenue but at a massive cost to Irish Rail's best customers.
It is also coming in on top of a significant worsening of the service quality if the level of overcrowding on this morning's 0545 from Sligo (which was reduce to 4 cars) is anything to go by. I'm not going to bleat about the danger factor which is overstated but this train was not comfortable this morning. If this continues, I can see people from Enfield and Kilcock switching to alternative services. |
The reality is that there is an element of the government shifting the burden of the cost of operating public transport onto the operating companies and the end user.
I would think that there is a limit to the amount of inflation busting rises that will be accepted though - as James says they're hitting their best customers (monthly and annual pass holders) with the biggest increases. I can't imagine that point is too far away. Re the 4 car crowding - there's going to be an element of this happening while the sets are reconfigured - some trains will need to remain at 2x3 car (such as the 0545), but until a reasonable number of 4 car sets are formed (at the moment there are only 6 sets), there's going to be some trains that will be shorter than desirable for the simple reason that there won't be enough sets to go around. |
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