The principle of Hong Kong MTR's fare policy is to optimise revenue by levying competitive fares for different market segments. MTR's fare structure is, in principle, determined by travelling distance. For specific market segments where MTR has a high competitive advantage, premium fares are charged. For many years, MTR has been under strong political and social pressure not to increase fares, especially in times of economic distress. Fare adjustment does not seem to be a feasible option. As such, to increase operation revenue and remain profitable as a public listed company, over the years MTR has developed a fare revenue strategy designed to maximise revenue from differentiated customer segments with varying price elasticity. With implementation of different ticket products and innovative fare promotion programmes targeted to boost specific customer behaviour, more passengers are attracted and their patronage brings in more operation revenue. The presentation will outline the strategy, implementation, experiences and lessons learned during the process, which provide inspiration for the audience on how to maximise operation revenue under constrained environment.
展开▼
