New year, new life. Even for those travelling by train. Well not radically, perhaps, but as of 1 January the era of “static” prices on Trenitalia’s Frecce trains has definitively ended, giving way to dynamic pricing.
The sooner you book, the less you spend is the well-known old adage, at least for those used to travelling by air, especially with low-cost carriers. And now, after some experimentation, it is fully in effect for Trenitalia trains as prices are no longer determined by fixed fares but vary according to passenger demand. The aim is twofold: on the one hand to incentivize the advance purchase of tickets and, on the other, to ensure a better distribution of travel flows by increasing the appeal of lower-demand time slots and days.
Trenitalia wants to raise train occupancy, especially on routes and at times when there are more empty seats. But the Ferrovie dello Stato group insists that, despite the increased flexibility, prices will not be able to exceed a pre-established ceiling. In other words the steep price surges typical of air travel at peak periods such as Christmas or the mid-August Italian bank holiday, will not happen on the railways. Competition, today mainly from Italo and in the future also from the French SNCF, should further contribute to maintaining balanced ticket prices. However, crucially the new mechanism will only concern the “market-based” Frecce trains and not the Intercity or regional services which are subject to public subsidies.
Dynamic pricing uses software to process data and forecasts, suggesting the most appropriate fare trend. But Trenitalia says the final decision will not depend solely on the algorithm, and that a marketing task force will supervise the software, deciding how best to use the information provided to optimize both full trains and value for customers. A hybrid approach aimed at balancing algorithmic efficiency with a human sensitivity to market needs.
Mariella Cattaneo
Journalist
