THE EFFECT OF YIELD MANAGEMENT ON RAILROADS

Although on-time delivery is critical in today's competitive marketplace, railroads are not usually able to provide consistently reliable freight service. Railroads attempt to offer a low-price product by minimizing their costs and maximizing their asset utilization; strategies which do not support on-time performance. This paper explores the use of yield management to segment the railroad market into high-priority, premium priced freight or low-priority, low priced freight. Through market segmentation, railroads can move from pure cost-minimization to a more service focused strategy. Using yield management to smooth demand will decrease the need for excess capacity (reduce costs) and at the same time improve service.

• Record URL:
  https://hdl.handle.net/2027/mdp.39015036305228?urlappend=%3Bseq=221
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/7938948
• Corporate Authors:

  Eno Transportation Foundation

  44211 Slatestone Court
  Lansdowne, VA  United States  22075
• Authors:
  • Strasser, S
• Publication Date: 1996

Language

• English

Media Info

• Pagination: p. 47-55
• Serial:
  • Transportation Quarterly
  • Volume: 50
  • Issue Number: 2
  • Publisher: Eno Transportation Foundation
  • ISSN: 0278-9434

Subject/Index Terms

• TRT Terms: Cost control; Freight service; Railroad transportation; Yield management
• Uncontrolled Terms: Capacity; Cost minimization
• Subject Areas: Administration and Management; Economics; Freight Transportation; Highways; Railroads; I10: Economics and Administration;

Filing Info

• Accession Number: 00730882
• Record Type: Publication
• Files: TRIS
• Created Date: Feb 3 1997 12:00AM