Revenue rising on spruced-up Hoosier State train
The Hoosier State passenger train from Indianapolis to Chicago, close to death not long ago, is suddenly on a bit of a roll.
In the year since it changed ownership and management, ticket sales revenue has risen 14 percent overall, including more than 65 percent in June from the prior year and 63 percent in July.
Today marks the first anniversary of the refurbished Hoosier State line built from a new partnership among Amtrak, Iowa Pacific Holdings, the Indiana Department of Transportation and the cities with stations along the route. Under the three-year agreement, Iowa Pacific provides and maintains the train cars, Amtrak operates them and the cities and INDOT chip in on annual funding.
Iowa Pacific has made several upgrades to the line, including the addition of a domed lounge car and a dining car with white tablecloths. Alcohol service and snacks are sold, and Wi-Fi is free. Passenger capacity has increased, there are now four cars instead of two and passengers can upgrade to business class seating.
The rise in ticket sales revenue comes despite a 12 percent decline in the number of passengers because of earlier uncertainty about the viability of the service, said Iowa Pacific President Ed Ellis. He said many travelers are choosing more expensive business class tickets and that coach tickets are slightly more expensive than they used to be. He noted that business class was not available until October.
"People really like what they are getting," Ellis said. "We had to recover from a service before that was not known as very customer-friendly. It will take some time for people to discover what is available now, to tell their friends, so word of mouth spreads."
Amtrak’s Hoosier State line appears back on track
Ellis said the revenues don't include what the line sold in food and drinks.
"That's a significant portion of our overall revenues," Ellis said. "On some trips, we sell 65 meals."
Exact figures on concession revenues were not immediately available, Ellis said.
INDOT officials said the Hoosier State is now among the highest-rated trains on the Amtrak system, with about 90 percent of riders saying they are satisfied.
The on-time performance since October has averaged 82 percent, INDOT reported. The Hoosier State's on-time average was 54 percent in 2014 and 67 percent in 2015, according to Amtrak.
Ellis said track improvements at the Chicago rail yard and better dispatcher communication with train engineers there helped reduce backups.
In the first year under new ownership and management, 27,937 tickets were sold on the Hoosier State, compared with 31,903 the previous year. Ticket revenues of $858,300 compared with $748,410 the previous year.
A funding shortage in 2014 almost derailed the line for good until the new arrangement was hammered out.
The Hoosier State leaves Chicago and Indianapolis once a day four days a week. During the five-hour trip, it makes stops in Crawfordsville, Lafayette, Rensselaer and Dyer. One-way tickets cost $24 to $48.
Call IndyStar reporter John Tuohy at (317) 444-6418. Follow him on Twitter: @john_tuohy.