Characteristics of Railroad Problems
Railroad revenue management problems generally
- Are highly network oriented
- Have booking arrival patterns independent of fare class value, and
- Have very short booking lead times
Critical differences between freight and passenger problems include:
- The operational characteristic of freight problems
- The ability to “bump” a shipment from its original trip plan at an intermediate terminal
- The need to model “blocks” as well as “legs”
- The customer “account relationship” is different
- Pricing and general service parameters are often contracted in advance, limiting the ability to reject freight.
- For intermodal service, the involvement of shipper agents limits a rail carriers’ direct contact with ultimate shippers/consignee which poses a problem in the administration of a reservations/booking function.
- For railcar service, choice of alternative rail carriers may be very limited or nonexistent.