Re: C&TSRR Bus Costs - the revenue picture

Ridership was actually 50,216 in 2000.
In 2000 and 2001, trips that involved a bus leg cost more than Osier-and-back trips (a $20 difference in Coach class, $30 in Parlour class). Each bus seat could be used twice in a day - in the morning before the trains departed, and in the afternoon after they returned. In addition, one bus was scheduled to handle riders setting down at Cumbres for a return to Antonito, so the seats on one bus were actually offered three times each day.
In 2000 38% of riders paid that $20 premium; that equates to revenue of $381,641. You quote a cost of $139,525 - that sounds about right.
In 2001 45.1% of riders paid that $20 or $30 premium, revenue of $516,011 (compared to your $164,430).
In 2002 and 2003, the Osier-and-back price was increased from $40 to $45, and the bus trips remained at $60. In 2002, I believe the percentage of riders paying the premium increased to over 50%. In 2003, of course, the differential was academic - there were no Osier-and-back trips.
Now, business 101 quiz: you are a business manager. Your business offers two products, at two different prices. You can eliminate the higher-priced product with the assurance that all those customers will purchase your lower-priced product. Costs will drop by $303,955. Revenues will drop by $897,652.
Let's put it another way. You offer one product. You have the opportunity to offer a second, higher-price product. Costs will increase by $303,955. Revenues will increase by $897,652.
Are you willing to forego $597,000 in pure profit?
In other words: sometimes in business, cutting costs is the wrong thing to do. (The key is knowing when.)
In 2004, two pricing changes were introduced by the Commission. The Osier-and-back trip price was increased to match the bus trip cost, $60. And trips originating in Antonito were priced $5 lower. As a result, the revenue picture would be a little murkier, and there is also probably greater demand for bus seats.
JAC