||The Taiwan High Speed Rail is the case for the study. To explore the rationality of public transit fare pricing, aimed at using the Taiwan High Speed Rail financial information to understand the relationship between its operating costs and fares, in case Taiwan High Speed Rail transfers unrelated costs of train operating to consumers for shareholders’ interests. This paper seeks for solutions in accordance with the findings to the Taiwan High Speed Rail. |
In this study, the break-even point for the study of architecture using equation method to the case of financial data and other secondary data to establish the break-even model, the model is based on four factors: Fixed costs, Traffic factors, Interest expense, and Contingent liabilities. The break-even point at a reasonable cost structure and consider a reasonable profit for Taiwan High Speed Rail shareholders concluded as follows:
According to the break-even point, the existing fare pricing of Taiwan High Speed Rail is reasonable. A price-hike of the existing fare would be considered that is a way to increase interest of the shareholders by cutting social welfare considerations. This paper helps Taiwan High Speed Rail to understand its bad operating performance because of the low occupancy rates. To attract more visitors to take the Taiwan high Speed Rail in off-peak by price discrimination can increase the marginal benefit when the train service is fixed. Under this kind of pricing policy, Taiwan High Speed Rail can provide more reduce-price tickets to customers. It will be a win-win situation for Taiwan High Speed Rail、government and customers.