Table Of Contents - Chicago Transit Authority

CTA Express Airport Train Service Business Plan
• Price-insensitive business traveler market - A survey of travelers conducted by Wilbur Smith
Associates in September 2004 found that approximately 50 percent of the Chicago airports’
passengers were business travelers. As business travelers overall tend to be less price-sensitive
(further demonstrated in the preference survey by Wilbur Smith), it is important to set a price that
will allow the manager of the service to capture higher revenue from this large market. This includes
the potential to pay a seat reservation surcharge to ensure accommodation on the train during peak
airport travel periods.
• Travelers’ perceptions of value - The premium customer services provided at the downtown station
will help allow a premium fare to be charged for the rail service to the airport. For example, flight
check-in and baggage tagging provide time-saving advantages attractive to travelers on a tight
schedule.
• Competitive modes of transportation - The recommended price is set at approximately one-third to
one-half of the price of a taxi, which would allow two passengers to travel on the premium airport
train for less than the cost of sharing a taxi. The price may also be set lower than the price of the
competitive Continental Airport Express shuttle bus, which provides door-to-door service with pickups
and drop-offs at major hotels and downtown locations.
• Availability of discounts - Based on the profile for travelers in the Chicago area, a range of discounts
could be developed specifically targeted to the more price-sensitive leisure traveler market.
It is suggested that the following range of discounts be considered:
• Multiple trip discounts, designed to lock in the traveler for repeat journeys. For example, the
discounts could start when the passenger buys a roundtrip ticket. These discounts are designed to
target price-sensitive travelers who prefer to get a discount by buying a ticket in advance.
• Student and senior discounts will attract the most price-sensitive category of travelers. These
discounts are usually set at up to 50 percent off the base fare.
• Corporate discounts can be set at a small discount from the base fare (up to five to ten percent,
depending on the expected amount of business from that corporation). This would provide a good
opportunity to start conversations with major corporations located in Chicago and educate them
about the premium service available for business travelers. The goal of this discount is to get buy-in
from corporate travelers in the Chicago area. These discounts could potentially be eliminated once
the service matures.
• CTA traveler discount could be offered to users of CTA Transit Cards. While the discount could be
small, the ability to use one card for the full journey would provide the convenience of a “seamless
journey” and potentially attract more Chicago residents familiar with the CTA system.
The discounts will be taken from the base fare and will decrease the average revenue per passenger. It
is expected that the nominal average revenue per passenger will be lower in the first few years of
operation due to the introductory discounts and will gradually level off by year three of the service (based
on comments from executives of comparable air rail link services).
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