Why does the Auto-Train Service Approach being Profitable?

I believe it's because of numerous reasons, plus a unique market/clientele, but I'm interested in hearing the specifics that people are aware of?

One reason would be that it is a simple point A to point B operation with only a crew and service stop in Florence. No stopping at various stations along the way. If it were marketed right and not have its amenities nickeled and dimed, it could be a lucrative operation.

1. It's a long train. Trains have huge overhead: fuel and locomotive-related costs, among other costs. Once those costs are covered, it's easy to make a profit.

Most Amtrak long-distance trains have such high overhead (including paying for locomotives that could haul much longer trains than they do), but are so short that they don't carry enough passengers to generate ticket revenues to come close to covering these overhead costs. The Auto-Train does: car after car of passengers and autos.

2. Few stations. Stations add to trains' overhead. If airlines had to operate airports for just 1 flight a day, they'd lose a ton of money, too. The Auto-Train has only 2 stations.

From what I undestand, the bookings are pretty solid as well. It's not like they run that train half-empty very often.

Think about all the extra revenue from the cars. All they need is someone to unload them and load them, no need for onboard staff.

I've always wondered how much more money the train could make if it had a second terminus in Massachusetts or New Jersey.

What does it cost to take your car one-way? In comparison to a 12 hour drive, Hotel, and gas. Actually I looked it up... $202 and up for the vehicle. Definitely competitive with gas/hotel.

Parts of I-95 south of Richmond Va can get congested,always under construction,etc Gas pricing near an interstate will be higher then the rest of
the local area high price.
You wind up wasting time at "tourist traps" like "South of the Border",stuck waiting in line for fast food,restaurant seatting,etc........

gprimr1 wrote:I've always wondered how much more money the train could make if it had a second terminus in Massachusetts or New Jersey.

Not sure if the NEC could handle autoracks, so might have to go CSX (B&O/RDG) main line all the way. Ridgefield Park/Jersey City seems have the ideal location for a future Auto Train terminal.

SouthernRailway wrote:1.

2. Few stations. Stations add to trains' overhead. If airlines had to operate airports for just 1 flight a day, they'd lose a ton of money, too. The Auto-Train has only 2 stations.

Actually believe Florence is also considered a station. Servicing personnel at Florence cost are divided there between auto train and Silvers.

Florance is a Crew base and servicing point,need to add fuel, water,and dump the holding tanks!

A in depth trains article on the Auto Train ,

http://trn.trains.com/~/link.aspx?_id=4 ... AD056&_z=z" onclick="window.open(this.href);return false;

Mod Note: While the concept of extension up-Corridor is interesting and perhaps profitable, we have discussed it ad nauseum and I believe it has its own thread. If you wish to discuss such, please take it to that thread.

Thanks and have a safe week, especially if you're in the Northeast.

I don't really think the lack of en route stations is the reason for the good financial performance. Actually mid point stations on the LD network probably add more incremental revenue than they cost Amtrak.

I believe AT fills a unique market niche that cannot be addressed by any other transportation company. Therefore they can command a higher fare and yet still fill the train.

So somewhat premium fares and full trains? I suspect that's Brightline's hoped for business plan. "British" frequency and occupancy while charging premium prices.

Seems logical to me. If their demand pricing algorithm works well, full trains automatically means premium fares. Further, if they know the train will be full months in advance due to historical data (IE December - April), can they override the algorithm at the early booking end of things and make those pricey as well? That's what it appears the Acela fare algorithm does.