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A Study on High-Speed Rail Pricing Strategy for Thailand Based on Dynamic Optimal Pricing Model
Author(s)
Date Issued
June 30, 2021
Type
Article
Abstract
The Bangkok–Nong Khai high-speed railway is the first high-speed line in Thailand and is currently under construction. The project is due to be completed by 2023, with ticket prices starting at 80 baht plus 1.8 baht per km which can be considered as a straight-line fare set with a fixed rate increase. Different from the current price policy, this paper examines the application of dynamic pricing to Thailand’s HSR. Dynamic Pricing Optimizer proposed in this paper is a unique system of dynamic pricing by considering the changes in the amount of service requirements and the time of purchasing tickets designed to solve the problem of pricing that is appropriate. First, The Dynamic Pricing Optimizer (DPO) system will integrate the user data from the latest trip or historical information. After that, there will be a forecast for users of high-speed trains based on historical data in order to create a demand function that is linear. After that, the price will be determined by the optimization method to find the most suitable price in order to maximize the revenue. Lastly, we compare both fare policies and found that The Dynamic Pricing policy can increase revenue up to 6.5%.
Citation
International Journal of Intelligent Engineering and Systems, 14(3), 97-108, 2021