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Discrete Dynamics in Nature and Society
Volume 2013 (2013), Article ID 715256, 6 pages
http://dx.doi.org/10.1155/2013/715256
Research Article

A Study on High-Speed Rail Pricing Strategy in the Context of Modes Competition

1State Key Laboratory of Rail Traffic Control and Safety, Beijing Jiaotong University, Beijing 100044, China
2School of Traffic and Transportation, Beijing Jiaotong University, Haidian District, Beijing 100044, China

Received 30 September 2013; Accepted 5 December 2013

Academic Editor: Huimin Niu

Copyright © 2013 Enjian Yao et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

High-speed rail (HSR) has developed rapidly in China over the recent years, for the less pollution, faster speed, comfort, and safety. However, there is still an issue on how to improve the seat occupancy rates for some HSR lines. This research analyzes the pricing strategy for HSR in Wuhan-Guangzhou corridor based on the competition among different transport modes with the aim of improving occupancy rates. It starts with the theoretical analysis of relationship between market share and ticket fare, and then disaggregate choice models with nested structure based on stated preference (SP) data are established to obtain the market share of HSR under specific ticket fare. Finally, a pricing strategy is proposed to improve the occupancy rates for Wuhan-Guangzhou HSR. The results confirm that a pricing strategy with floating fare should be accepted to improve the profit of HSR; to be specific, the ticket fare should be set in lower level on weekdays and higher level on holidays.