Amtrak 2012 Annual Report Download - page 59

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o Migration or Replacement of Labor Management System Application - $1.0M – Modernizes and
replaces an obsolete scheduling and pay calculation system used for On Board Services and Train
and Engine crew management. The replacement will provide an integrated, flexible, rules driven
and maintainable capability. By implementing a modern solution that integrates with SAP and
other transportation systems, this project will reduce the risk of dependence upon obsolete
technology and loss of institutional knowledge.
Marketing and Product Development
Overview of the Department
Marketing and Product Development (M&PD) drives Amtrak ridership, ticket revenue, and market share
through integrated marketing and sales capabilities and a constant focus on increasing customer
satisfaction through targeted product and service improvements. Major departmental functions include
sales distribution, customer service, marketing and sales promotion, food and beverage service delivery,
market research/analysis, pricing/revenue management, and route-level product management.
M&PD budgeted operating expenses for FY12 are $255.5M. Major operating expense drivers of the
department include advertising and promotional costs, contract management and provisioning costs for
food and beverage service, wages and benefits for the reservation/sales call centers, and departmental
salaries.
Meeting the new customer satisfaction and route performance targets mandated by PRIIA in Section 207
and route performance improvement plans in Section 210 is the responsibility of M&PD’ s groups in
collaboration with the Operations, and Government Affairs departments.
Targeted metrics as defined under PRIIA Section 207 for financial/operating, on-time performance, train
delays, and customer satisfaction will be the focus of management actions to improve and expand
passenger rail services. To that end, M&PD will continue to deliver the in-depth customer research
program begun in FY10 to evaluate the customer experience and assess customer expectations and help
Amtrak prioritize its operating and capital programs.
Continued investments to leverage, build and mature marketing capabilities will be critical to meeting
top-line objectives. These will focus on the following:
Building brand loyalty (by increasing repeat ridership) from the existing customer base
Stimulating trial to attract new riders from competing travel modes
Maintaining Amtrak’ s air/rail market share in the NEC above 60% in the Washington-
New York market and above 50% in the New York-Boston market
Building market share of total trips in high frequency corridors outside of the NEC
Key M&PD advances from capital programs towards these goals will include greater sophistication in the
use of electronic direct-to-customer communications, through targeted online interactions, and the
development of integrated brand marketing campaigns that communicate the benefits of rail travel across
digital, print, broadcast, and entertainment/events/sports marketing venues. Decision support capabilities
in Pricing/Revenue Management and Market Research/Analysis will continue to play a critical role in
improving revenue performance and guiding the application of marketing resources.
FY2012 Budget Post Board 1.20.12.doc 59 of 79
Base Activity: