Maximising Operation Revenues at Hong Kong MTR

This article provides an overview of the fare structure and policy of Hong Kong’s mass transit railway (MTR) system. To increase operating revenue and remain profitable without raising fares, MTR has developed a fare revenue strategy designed to maximize revenue from differentiated customer segments with varying price elasticity. Although the fare structure is in principle determined by travel distance, different ticket products and innovative fare promotion programs are used to target specific customer behavior and boost overall patronage. For specific market segments where MTR has a high competitive advantage, premium fares are charged. Concessionary fare schemes are offered to passengers who are more price sensitive, such as students, children and the elderly. Group discounts and coupons are used to attract leisure travelers. Customer loyalty programs are used to encourage repeat usage. Partnerships offering value-added services such as free newspapers and wi-fi service are also employed to increase revenues while providing desired customer services.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/1016796X
• Authors:
  • Leung, Annie
• Publication Date: 2011-1

Language

• English

Media Info

• Media Type: Print
• Features: Illustrations;
• Pagination: pp 6-7
• Serial:
  • Public Transport International
  • Volume: 60
  • Issue Number: 1
  • Publisher: International Association of Public Transport (UITP)
  • ISSN: 1016-796X
  • Serial URL: http://www.uitp.org/publications/public-transport-magazine.cfm

Subject/Index Terms

• TRT Terms: Case studies; Elasticity (Economics); Fares; Market segmented groups; Operating revenues; Partnerships; Rail transit
• Geographic Terms: Hong Kong (China)
• Subject Areas: Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 01342112
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 21 2011 9:27AM