The Problem

No Revenue Management (RM) Training for UK Rail Staff

Avanti West Coast is a prominent British long-distance train operating company, formed as a partnership between FirstGroup and Trenitalia under the joint venture First Trenitalia. The company was awarded the contract to operate services on the West Coast Mainline. As part of its contractual obligations, Avanti West Coast was tasked with designing and implementing a Revenue Management programme aimed at enhancing the skills of the rail industry workforce. To ensure compliance with anti-price-fixing regulations, an independent organisation was required to oversee the programme; consequently, Heyward Group secured the tender to support the development and facilitation of this initiative.

The structure of the UK rail industry is distinguished by the active involvement of the Department for Transport, along with a complex legislative framework governing ticketing, pricing, and revenue sharing on shared tracks. Additional considerations include specific aspects such as origin-to-destination passenger flows on longer routes. With the advent of new technologies and platforms for ticket sales, it became increasingly important for Revenue Management staff to advance their expertise in Revenue Management principles and their application within this unique operational environment.

The Solution

Deeper Thinking, Shift Perspectives, Project work

Heyward Group’s methodology focused on encouraging staff to broaden their perspectives and apply Revenue Management principles more strategically, rather than simply instructing them on routine tasks. The program comprised two courses: Foundation and Strategic, which addressed topics such as Demand & Capacity, Fares, Yield Strategy, Competition, Transforming Insights into Action, RM Systems, and Communication Skills.

Participants engaged in activities designed to enhance their critical thinking regarding the reasoning behind their decisions and methods for improvement. This approach fostered increased engagement and meaningful perspective shifts. The courses featured two one-day workshops and culminated in a project presented to senior management.

The Results

Return on Investment

Each cohort of the Courses consisted of 8 to 10 participants from across the United Kingdom. Participant feedback indicated a 90% satisfaction rate. Initially, the pilot program was restricted to Avanti West Coast staff; however, over the course of five years, it was expanded to include representatives from five additional Train Operating Companies (TOCs).

Within the program, project participants applied newly acquired knowledge to their daily responsibilities, fostered connections across various business units, and contributed at least £10,000 in value per participant to the organisation. In the program’s inaugural year, Avanti West Coast reported a revenue increase of at least £100,000. Notably, the benefits of the program were disseminated beyond line staff, but new discoveries reached into Senior Management levels as well.

“A really interactive course that makes you think outside the box”

“Really insightful, engaging and offered different ways of thinking”

“Covered all of the fundamentals of revenue management in a practical and engaging way”