Author Question: Why are railroads in other countries more commonplace and accepted than in the United States? ... (Read 90 times)

laurencescou · **on:** Sep 11, 2019

Question 1

Does discounting price always lead to more rooms/seats sold and higher revenue?

What will be an ideal response?

Question 2

Why are railroads in other countries more commonplace and accepted than in the United States?

What will be an ideal response?

Danny Ewald · **Reply #1 on:** Sep 11, 2019

Answer 1

Not always. Demand sometimes reaches a plateau meaning that a lower/higher price will not significantly change its pattern. In that case, discounting (or raising rates) does not lead to additional (or less) capacity sold. Studies have concluded that for a larger market, discounting does not lead to more revenue for that market as a whole. Nevertheless, it is important to highlight that, while overall revenue may not be impacted by discount, individual businesses receive different shares out of that market. At a micro-market level, consumer buying patterns can usually be influenced by pricing.

Answer 2

With heavy government subsidies, railway systems in other countries have been able to offer customers frequent, dependable service in modern and fast trains. Also, their airline systems do not provide the cheap fares and coverage that are available in the United States.