How do railway companies manage to offer affordable fares?

Railway companies around the world have different approaches to managing their fares, but many of them rely on a combination of factors to keep their prices affordable. One key factor is economies of scale - the more passengers a train carries, the cheaper the fare can be per person. To encourage more passengers, many railway companies offer discounts for advance bookings or for purchasing round-trip tickets. They may also offer loyalty programs or frequent rider discounts to encourage repeat business.

Another factor that can help keep fares low is government subsidies. In many countries, railway companies receive financial support from the government to help cover the costs of infrastructure maintenance and upgrades. This support can allow companies to keep their fares lower than they would be otherwise. Additionally, railway companies may also look to generate revenue from other sources, such as advertising or leasing out their space for retail or commercial use.

Finally, some railway companies may also implement cost-cutting measures to help keep fares affordable. This can include reducing staff or offering self-service options, such as automated ticket kiosks or mobile ticketing. Additionally, some companies may invest in more fuel-efficient trains or technology to help reduce their operating costs over time.