The worst thing about airline tickets is officially coming to Amtrak
- Amtrak's cheapest two fare categories will see major new restrictions on March 1.
- Many tickets will now be completely nonrefundable if cancelled, with steep change fees. Previously, riders were only required to pay the difference in fare if changing trains.
- Business Insider first reported the changes in December, citing an internal document.
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Some of the most derided fees and rules of airline tickets are coming to Amtrak.
Beginning March 1, the railroad announced Monday, Amtrak's cheapest "saver" fares will become completely nonrefundable, with no changes allowed, 24 hours after purchase. Second-tier "Value" fares will also see new restrictions for changes or cancellations made within two weeks of travel.
The unpopular changes - originally set to begin in January but delayed after Business Insider reported their details ahead of an official announcement - are part of an ambitious plan by Amtrak to turn a profit (minus federal subsidies) for the first time in its five-decade history.
In an interview with The Washington Post, Roger Harris, Amtrak's chief marketing and revenue officer, said the changes will allow the railroad to offer even cheaper tickets. He also pushed back against the idea that they are similar to airline policies.
"There are lessons to be learned from the airlines, but I don't think we should ever be an airline or like an airline," the former airline executive said. "We're trying to get people out of cars and out of less-carbon-efficient forms of transportation onto trains. And one of the ways we do that is to make fares more affordable for new segments of the population."
Other changes in the goal of reducing financial losses have included a shift from traditional chef-prepared dining aboard many long-distance trains in favor of microwavable meals, as well as heavy promotions to attract new riders, and a new nonstop service between New York and Washington, DC, one of Amtrak's busiest and most lucrative routes.
So far, they seem to be working.
Amtrak in November reported a record year of ridership and finances. Executives said they now expect to break even in 2020. Those improvements could be key to the railroad's continued survival in the face of steep cuts to Amtrak's federal subsidies proposed by White House in February.
"You cannot cut your way to financial performance," Anthony Coscia, Amtrak's chairman, told reporters in November. "There isn't a formula that allows us to reduce costs and become a strong company from a financial operating standpoint. That's not possible. You have to grow revenue."
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