Tariff increase. Why are train ticket prices rising at the current dollar price?

From the beginning of 2023, the tariffs of "Russian railways" for cargo and passenger transportation will increase. Starting from January 1, train tickets will become 8.1% more expensive. This indicator was set by Russian Railways, the carrier FPC and the Ministry of Transport of the Russian Federation. However, it is not entirely clear why train tickets are getting more expensive. If the cost of almost all goods is related to the US dollar exchange rate, then why do prices not fall down when it becomes cheaper? It turned out that everything is not so simple. There is no direct connection between the exchange rate and the change in the fare. 

Why have railway tickets become more expensive

In recent years, the Federal Passenger Company has raised transportation tariffs by an average of 4%. In 2023, the figure is twice as high. The question arises, what is the reason for this. It would seem that the strengthening of the Russian ruble against the dollar, on the contrary, should lead to a reduction in the cost of tariffs. In reality, the picture is different.

Carriers assure that the rise in price of tickets is quite justified. They provided a schedule of tariff changes for the next three years:

• 2023 ― 8,1%;
• 2024 ― 7,1%;
• 2025 ― 4,6%.

These figures were justified by the need to cover the increased costs due to the rise in the cost of using and maintaining railway infrastructure. It should be noted that in 2022 fares were indexed twice. At the beginning, they were increased by 4.3%. Since October 1, tariffs have increased again, already by 6.52%. But these indicators were not enough to compensate for the costs.

Which tickets will become more expensive

At first, the FPC stated that in 2023 the prices for travel documents giving the right to stay in shared and reserved cars would change. The decision was later changed. 

From January 1, the cost of tickets in such cars will change:

• general;
• reserved seats;
• SV;
• compartment;
• suite.

All tickets will rise in price by the same indicator ― 8.1%. However, the final cost depends on many factors. It is determined by dynamic or seasonal pricing. The cost is significantly affected by demand.

How is the ticket price formed

The cost of the same travel document may differ significantly at different times. It depends on a number of factors:

• what is the category of the car (reserved seat, compartment);
• branded or non-branded train;
• direction, route length;
• demand;
• time of day, season.

Despite this, there are two programs that Russian Railways uses to generate the ticket price. This is dynamic pricing and the application of a seasonal coefficient. They are used for different categories of wagons and have some special features.

Dynamic pricing

This program is used to determine the cost of tickets in luxury, coupe, SV cars, as well as in the formation of prices for travel documents in sitting cars of high-speed trains. These include «Swallow», «Nevsky Express», «Swift ».    

The price formation is influenced by the parameters:

• departure time (the day of the week and the season are taken into account);
• how many days are left before departure;
• the demand for this direction, the number of tickets already sold.

A similar, but not identical, program is used when selling tickets for high-speed "Peregrine Falcons". There, the main parameter of pricing is demand.

The most expensive tickets on the eve of the holidays. They become more expensive before the New Year, in early May. In summer, during the holiday season, the cost of travel tickets increases by almost 20%. There is an increase in tariffs during "peak" periods. It's the weekend and Friday afternoon. 

Seasonal coefficients

The Federal Passenger Company annually compiles a list of coefficients that will be taken into account when pricing. Here the demand is taken into account at a specific time of the year, more precisely, its forecast. Thus, the tariff is set for a reserved seat and cars with seats in non-high-speed trains.

In summer and during the holidays, the ticket price increases by 10-20%. The most affordable travel tickets are sold:

• from the second half of January to mid-February;
• in the period from March to April;
• in October;
• from the second half of November to mid-December.

It should be noted that Russian Railways regularly offers its customers to take advantage of additional offers that will help save money when buying tickets. For example, there is a program with the eloquent name "Plan ahead!». The earlier a ticket is purchased before departure, the cheaper it will cost. Moreover, discounts for advance booking can reach 30-40%. This program is most often used for pricing tickets for international trains.  

What else affects the cost of travel documents

The situation is banal to the point of pain: the same departure and arrival points, and the price of tickets for different trains is significantly different. There is nothing surprising here. There are several other factors that affect the price.

Travel in branded trains will cost more than in non-branded ones. Passengers are offered more comfortable conditions. For example, improved bed linen, air conditioning, hot meals, personal hygiene products. On such trains, conductors undergo additional training in order to provide better services. 

The cost of different trains may differ if they have different pricing systems ― dynamic or seasonal. The level of comfort also affects the price. The price of reserved seat tickets is about 1.7 times less than that of a compartment. This is also due to the number of passengers in the car. The reserved seat accommodates a maximum of 54 people. The compartment has no more than 34-36 seats.

Russian Railways actively stimulates the demand for the purchase of upper shelves. They are less comfortable, they are bought less often. Therefore, the price for them is 20-30% lower than for the lower ones. 

How to save on railway tickets: useful tips

The following recommendations will help you purchase cheaper travel documents:

• plan your trips in advance and buy tickets as early as possible;
• if you need to go somewhere urgently, leave on Thursday, because this is the day with the lowest demand;
• buy online, because you can compare the cost of tickets for different trains or even use bonuses;
• plan trips for the "off-season" when travel documents are the cheapest;
• if you are traveling with children, do not forget that up to 5 years old a child has the right to free travel, and if he is older, then you can buy a ticket for "Children" with a discount;
• travel documents with non-refundable fare are cheaper;
• when traveling with a large company, buy tickets together, because when buying 10 at once, a discount of up to 20% is provided;
• choose the upper shelves.

Thus, ticket prices do not depend on the dollar exchange rate. Even if the Russian ruble strengthens against foreign currencies, this does not guarantee that all goods and services will become cheaper. However, you can save on railway tickets if you take into account the pricing features.