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How to generate more revenue by increasing ticket price when demand is more than supply? How to ensure that seats do not remain vacant? How much is price sensitivity of demand? What should be the maximum price? How many seats should be reserved for normal price?
PriceLogic™ : A Decision Support System which assists in varying the price based on factors such as price sensitivity,demand and vacant seats.
What We Offer
How to generate more revenue by increasing ticket price when demand is more than supply? How to ensure that seats do not remain vacant? How much is price sensitivity of demand? What should be the maximum price? How many seats should be reserved for normal price? PRICELOGICTM is a decision support system for dynamic pricing.
Benefits of using PriceLogic™ are:
- Increase in revenue.
- Less vacant seats.
- Timely periodic rest.
- More time at home leading to happy work-life balance.
- Zero Based Links or existing links can be made.
- Crew Link statistics are automatically calculated.
Crew is a very costly resource and consists of highly paid employees. As per a planning commission conducted study named ‘Total Transportation Study’1, the running staff cost was 7.9% of operating expenses in the India
For every crew in the link there is 15% leave reserve and 15% training reserve. For 25 drivers there is one Loco Inspector (4%) and for every 50 Guards there is one Traffic Inspector (2%). We can take other administrative overheads to be 5%. Thus for every one crew set in crew link, we have 3X1.3X1.06X1.05 employees = 4.34 employees
Average salary and perks (pass PTO, house, medical, superannuation contribution/pension) of running staff can be taken as Rs 12 lakhs per year. Then financial impact of one crew set in crew link = Rs. 52.08 lakhs. Rs Fifty Two lakh can be taken as a reasonable cost per crew set in the absence of any direct source of data.
Two field trials were done. In one trial, a zero base plan was made to run trains in Northern Railway. With the software, we could achieve 28% more productivity per crew. It means currently we are using 28% more crew. In the second trial, we just improved the running room rest in Firozpur Division (FZR) crew links. It leads to saving of 10 percent crew. In both the cases, the crew was spending more time at home.
On all India basis, a 10% saving in coaching crew will save of 6000 people. There are more than 60,000 driver guards and assistant drivers running coaching trains. Rs 720 Crore is 0.4% of operating ratio if we take 1,80,000 crore as yearly revenue. The saving in coaching crew will reduce the requirements of goods crew working in coaching. There is perennial shortage in goods crew and they earn overtime at double the rate. Thus, the coaching crew saved will reduce the overtime in goods crew at double the rate of salary.
The customers can subscribe to the software. Customers will receive training in the use of the software. We provide five day working hours (9AM to 5 PM) support for the software. This is just a telephone call away. Five days are Monday to Friday excluding Karnataka holidays.
To know more about the subscription services please call Dr. Manish Kumar at +91-9481578871