Dynamic pricing system
The dynamic pricing system is a multifactor pricing tool that combines most approaches previously used as marketing promotion tools: pricing depending on seat/berth category (upper or lower berth), day of the week, booking windowIn this case, a booking window is the starting date of advance train ticket sales., etc. Unlike static marketing promotions which offer the rates set in advance for an extended period of time, the dynamic pricing system implies flexible ticketing reflecting internal dynamics and various external trends as at the sale date.
The system covers the entire commercial segment of FPC’s domestic services, in particular, the deregulated segment of trains outside socially necessary train services.
The system helps identify the balance between the demand for, and cost of, services, ultimately driving the demand for rail services.
In 2018, approximately 72% of tickets covered by dynamic pricing were sold at prices below or comparable to basic fares (fares that would have been applied without dynamic pricing).
To reinforce its positions in the passenger services market, FPC has been running various marketing promotions to stimulate consumer demand in both the deregulated and regulated segments, and boost the Company’s revenue.