The gardening metaphor:https://twitter.com/380kmh/status/841688949370290177 …
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If we look at another profitable suburban railway, we see again that while the hotel department brings in the most *revenue,* it is the transport department that brings in the most *income* after expenses, interest, taxes, depreciation and amortizationpic.twitter.com/uoeT6Kwx4s
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Think about that. We know, in America, that hotels, real estate, etc, are all financially viable and profitable businesses. Yet Japan shows us that you can get higher margins from transit--something we think is impossible!
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What's the goal? "Stable, high profitability in our railway operations!" For every 3 households in their service area, they have 2 daily riders. Nice ratio--20 times higher than the equivalent for Boston's commuter rail!pic.twitter.com/9jlzA6loL2
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Core strategies for Seibu's rail business:pic.twitter.com/oye1I8DLDJ
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When we look at the largest railway in Japan, the same principle holds up: transport provides a higher share of income (71%) than of revenue (68%)...pic.twitter.com/Yw8CEipSXa
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...more of that revenue comes from ordinary ticket holders (occasional riders) than from pass holders (regular riders), and more of it comes from ordinary trains than from high speed rail--especially ordinary trains in the suburban/commuter networkpic.twitter.com/M49Q8UWPP7
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30% of trips in Tokyo are made by transit--I'm not sure how much higher that share is if you focus on "trips to work," as is typical of mode share reports in the USA.pic.twitter.com/ILd9iVftEU
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It's not in the USA, but Toronto has done very well when it comes to higher transit mode share *for commuting,* tho again, I wonder how this compares to overall travel. Remember, focus on the ENTIRE market, not just commuters!pic.twitter.com/nYcDRrskYv
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How to stay in business once you're already making money? Raise demand, add value! Get more people to use your trains, and make it a better experience for them every time they come back:pic.twitter.com/lrsKwfsbd7
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And finally: what do they use all that money for? East Japan Railway was formed during the privatization of the old national railway, so it still has to pay down its predecessor's debt--something I expect any American railways seeking profitability would also have to think about:pic.twitter.com/nEXGwfSqGj
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Let's make it happen here, too! Don't let people trick you into thinking "for profit" is a bad thing when it comes to railways
#TrainTwitterpic.twitter.com/2zHTW7dN2V
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