Fare Weathered Friends

Week Ending 11/16/07:

We are always hearing about the terrible budget condition that Amtrak finds itself facing. Hostile non-railers in Congress want to trim more of the federal subsidy (leave it to Washington to bite the hand that feeds it, i.e., commuters getting to work in order to feed the FICA-monster) and make it more of a burden on us, over-taxed working poor! And while were at it, lets throw on a bigger helping of AMT to boot-- which makes me boot! Sorry, I digress. The Amtrak planners demonstrated their lack of Econ 101 when they boosted the cost of monthly rail passes. Mine was raised by 64% over a 15-month period. Their published explanation was that monthly ticket holders were receiving too large a discount over the regular round-tripper and that raising the fares was fairer. Huh? They also stated that this increase in ticket-toll would help make up some of the revenue shortfall. Prices were raised even after a consultant's report was released that stated that the increased monthly rail passes would, at best, be revenue-neutral. The additional squeezing of the faithfully departing, would be countered by the lost ridership of those who squealed "Enough" and left the rail system altogether. So far, no official information on this impact, only my personal observations of lighter loads and some of the former regulars who are now MIA.

Fortunately, Amtrak is trying some market-friendly alternatives to help keep the lights on and the conductor's pensions funded: advertising. Not spending more money on advertising, but selling ads (hey, if it works for Google). The ads I'm talking about are actually more traditional than cyber. Think rolling billboard. Starting this week, Acela Express from D.C. running to Boston will be wrapped in advertisements for an upcoming History Channel Special, hosted by Tom Brokow. The subject is "1968" and we can expect to see the giant images of Richard Nixon, Bobby Kennedy, Martin Luther King and Bob Dylan flash before our eyes. It should be particularly evident to our Delaware neighbors, since Amtrak rails parallels I-95 and makes the trains easily visible. As long as someone is willing to pay for the space, I'm sure there will be plenty more to come. I'd like to suggest two additional sources of free-market revenue for Amtrak: the Casino Car and "Acelerated", the work-out car. The rail casino could have one side for slots and the other side for blackjack. Create a partnership with a Native American tribe (I think Amtrak means "rolling in chips" in the Algonquin tongue) and give Donald Trump a management stake (picture The Donald plastered all over the outside of the car) and violla! Budget crisis solved in 120 days! My second solution caters to the time-conscious exerciser. What better way to chew up some miles during your commute and slip in a workout as well. The car could be equipped with steppers and ellipticals and maybe a compact weight station or two. Each user would be limited to twenty minutes or a half hour and equipment would be unlocked via credit card. Memberships could be sold and injury waivers would be signed as well. That should do it. Examples of the market at work and no need for escalating federal handouts or immediate in-your-pocket fare increases. As the Brits (who know a thing or two about trains) would say, brilliant!