ÖBB introduce dynamic pricing

Note: This blog entry was reposted from night-ride.ch, the predecessor website of nightride.com.  

On Sunday evening, I was among the first to report on the apparently sharp price rise for Nightjet trains. One day later it became a fact: it wasn't an oversight, ÖBB introduced a new pricing regime with the timetable change. One that really packs a punch. ÖBB itself has not yet published a press release. Instead, they provide an insight in a reply to my tweet:

We have adapted the pricing system for night trains, which means there is a wider range of prices. This allows us to respond better to demand. On low-booked days, there is a higher contingent at lower price levels. Tickets on well-booked days will be more expensive. (Translated from German.)

It continues in a somewhat disguised way:

Thanks to the new price range, customers will be able to get absolute remaining seats on the most popular train connections throughout the year. The new pricing regime thus offers more flexible ticket options, which also make it possible to book at shorter notice. (Translated from German.)

Well, at least I can't make complete sense of it. But it does sound a lot like dynamic pricing - prices are set dynamically according to demand.

When confronted with the suspected price rises, ÖBB told the Tages-Anzeiger that they were not increasing prices, but rather introducing a broader «price range».

Let's take a look.

On the other hand, the discounts are less significant. The seats in particular will be cheaper in future (not taking into account the costs for the chiropractor afterwards!) We also see reductions in the somewhat outdated 6-seater compartment, the reduction being around 15 per cent. Contrary to yesterday's initial assumption, the prices for the mini-cabins will remain roughly the same.

What does that mean for the actual prices? Broken down to the NJ 490 line, which is served by the new Nightjet, it looks like this.

At this point, it becomes clear that the broader price range was a bit of a euphemism, at least as far as the sleeper coaches are concerned. Prices can go up to 775 euros. Unfortunately, the graphic does not show the previous price, so here is a quick reminder:

• 1-seater compartment sleeper coach Comfort: 245 euros (well below the new range)
• 2-seater compartment sleeper coach Comfort: 149 euros (ditto)
• 4-seater compartment couchette Comfort: 143 euros (roughly in the middle of the new price range)
• Mini-Cabin: 158 euros (in this case, the old price was higher than the new price range)
• The seats were all priced at 112 euros, just under the new maximum of 115 euros.

Here's another example: the Nightjet 408 from Berlin to Zurich. Except for the 1-seater compartments and the Deluxe 2-seater, all the old prices are within the new price range.

My first analysis shows: As a rule, the new price regime increases the ticket prices for sleeper coaches. Perhaps this is now the first step and the new prices are moving more in the direction of the old ones. Or maybe a paradigm shift is imminent: Sleeper coaches will become the absolute luxury option, while the classic couchette and seating carriage are likely to be in greater demand again.

The latter are already much less popular today, and sleeper coaches are usually sold out earlier. Apparently, ÖBB wants to counteract this - through the price. It remains to be seen whether the customers will play along.

One thing is clear: this will make a faster and better price overview even more important in future. And that's what nightride.com is for. 👌

PS: Yes, there is also a new pricing model: the standard tickets, which can be cancelled up to the last day. For the sake of comparability, I haven't analysed these here - a first glance shows that they are sometimes more expensive, sometimes cheaper, but often in the same higher price range.