Recently, China Railway Group proposed a 20% increase in high-speed rail fares. Imagine a picture of standing at a busy high-speed rail station, holding a ticket after the price increase, and a trace of confusion and dissatisfaction can't help but swell up in your heart.
Is the increase in fares of the National Railway Group in pursuit of maximizing profits? Behind this 20% increase, is there an unknown hardship and helplessness?
The reason behind the increase in high-speed rail fares
China Railway Group's financial report in 2022 shows that its annual profit is only 3.304 billion yuan. This is indeed a drop in the bucket for a state-owned enterprise that undertakes the heavy responsibility of national railway transportation.
Taking high-speed rail as an example, its operating costs include energy consumption, maintenance, personnel salaries, technology updates, etc.
For example, the cost of electricity for high-speed rail accounts for 20% of total operating costs, and this cost is increasing as energy prices rise.
China Railway Group also needs to continuously invest in upgrading technology and facilities, such as introducing more advanced high-speed trains and upgrading signaling systems, which are all cash-burning activities.
The management of China Railway Group cannot be ignored. For example, there are many layers of management and low efficiency, which leads to poor cost control. High management costs and increasing operating expenses have made the financial situation of China Railway Group increasingly tight.
20% increase in high-speed rail fares
In response to the financial pressure, China Railway Group has decided to increase high-speed rail fares by 20%. This initiative aims to alleviate financial distress by increasing revenue.
This decision has sparked widespread public concern and discussion. For example, some business people who frequently take high-speed rail say that the increase in fares will increase their travel costs and affect their work efficiency.
Some other travel enthusiasts also said that the increase in high-speed rail fares will reduce the number of trips they can take, affecting the development of the tourism industry.
Long-term development strategy
The Japan Railways Group realized that raising fares alone would not solve the problem. They began to look for a more long-term development strategy.
For example, they plan to reduce costs by improving management efficiency. Specific measures include optimizing the organizational structure, simplifying the decision-making process, and improving the quality of employees.
They also plan to reduce operating costs through technological innovation. For example, they are working on more energy-efficient high-speed trains, as well as more efficient dispatching systems. While these measures will take time to show results, they are key to achieving sustainable development.
Public acceptance of high-speed rail fares
Public acceptance of high-speed rail fares is an important factor that must be considered by the China Railway Group.
For example, a survey shows that if high-speed rail fares rise by more than 30 percent, 50 percent of passengers will choose other modes of transportation.
This means that if the BTG does not set the fares reasonably, it may lead to the loss of passengers, which will affect the overall revenue.
Netizens said: In the past few years, everything has risen, but wages have not risen! There are so many high-speed railways to be built at a loss!
Netizens said: The high-speed rail is too expensive, I choose to take a plane [laughing and crying] [laughing and crying]
Therefore, China Railway Group needs to develop a reasonable fare system to balance costs and revenues while ensuring service quality.
Writing at the end
China Railway Group's decision to raise high-speed rail fares is a helpless choice under multiple pressures.
However, will this move really solve the financial woes of China Railway Group, or will it only be a symptom rather than a cure?
Should China Railway Group pay more attention to improving management efficiency, optimizing cost structure and enhancing service quality to achieve sustainable development?
How will the public's acceptance of high-speed rail fares affect the development of China Railway Group? These questions deserve our in-depth consideration and discussion.