Why is Amtrak so absurdly expensive?

Question

I just looked for a round-trip ticket between Baltimore and New York City on Amtrak's web site and was shocked to see that the price would be close to $300. Mind you, this is the normal regional service, not the "high-speed" Acela. For me to drive that distance, even at today's fuel costs, would be two thirds less. The last time I checked, trains are much more efficient than cars and airplanes, so why is this so expensive?

Is this just a result of inflation, the increased cost of fuel (doubtful considering that the trains in the North East corridor are electric) or the ongoing issue of Amtrak having a legal monopoly on inter-city rail travel? Something else?

Answer 1

1. they dont own the tracks, the freight companies do.

2. diesel prices are high and they also have to make a profit.

Answer 2

Amtrak has never been able to turn a profit on passenger ticket revenues and has to depend on subsidies from the Federal government to make up for budget shortfalls.

Every year the Federal budget contains less and less money for Amtrak, so Amtrak can only do 2 things to stay alive:  Eliminate service and raise fares.

As noted above, booking in advance can save you some money.

Answer 3

I would just like to comment on how you disregard fuel costs because Amtrak is electric.  It is also a pet peeve of mine about people talking about electric cars as "green".  The vast majority of electricity comes from coal, natural gas or uranium being used to create steam to turn a turbine generator.  Hydroelectric power is the only economical alternative.  Solar power and wind turbines combined generate less than 1% of all other electricity.

Answer 4

It is probably the combination of a variety of things. First, although most of the Northeast line is electric, that electricity has to come from somewhere, and all energy prices are going up as of late.

You are also probably paying for the convenience of being taken directly into the heart of the city. However, there are probably some extra costs associated with such a luxury. Think about the rising costs of property in the city, for instance. Also, they may have additional safety and emissions standards for entering the city, that they wouldn't have to deal with if the station were outside the city border.

If you want to drive for at least 4 hours, pay to park in the city and deal with the horrendous NYC traffic to save $200,  go for it. If you are that concerned about the cost, you can pick a non-peak time to travel, when the ticket fares are lower.

Answer 5

1. they have no other rail to compete with.

2. They have been heavily subsidized by the gov

(for decades) and the gov is cutting back so less $$ is available.

3. track and train maintenance costs are growing...as the existing tracks and trains age and growing demands upon an already stressed rail system...

4. RR retirement costs may be up too....

Answer 6

That sounds really high.  Did you book at the last minute?  Amtrak is just like the airlines.  Prices keep going up as the date comes closer.

Answer 7

Did you check the prices in the future?  The farther ahead you book the lower the price gets.  If you want to travel today you can expect to pay full price, but if you want to travel 2 weeks from now you could save as much as 50%.

Answer 8

Diesel prices.

Answer 9

I just checked for Amtrak fares between Baltimore and New  York for tomorrow.  There were several trains in each direction that cost $92, for a round-trip fare of $184.  The ones in the neighborhood of $150 each way were the Acelas.  You might want to look at the website again.

Answer 10

Big government and Unions! Tagger

Answer 11

Then stop your whining and drive!

Answer 12

Amtrak and indeed all public transportations systems are dependent on public funding.

Your ticket is not paying the full cost of riding, no matter how much it seems like.

Same with airlines, they do not pay their full costs of building airports, you and I do.

The higher the level of funding, the lower the fares can be.

Ridership is up in every sector of Amtrak, proving that people want to ride, tell your elected representatives you insist on higher level of funding and will vote for whomever supports this.

Answer 13

Because they can.

Answer 14

If you buy tickets in advance you can get them for much cheaper than $300.

I go up to New York from BWI Airport and back just about every other weekend and I never pay more than $175.  

I don't drive because of all the tolls.  I get bitter about giving Delaware all that money to spend all of 20 minutes driving across that tiny little corner of the state.