Rail fares in big cities could change significantly.
The Ministry of Land, Infrastructure, Transport and Tourism is starting to consider a mechanism to change the fare depending on the day of the week and the time of day for the purpose of alleviating congestion, and discussions on its introduction are expected to begin in earnest in the future.
The Ministry of Land, Infrastructure, Transport and Tourism is in the process of formulating a plan that will be the future policy of transportation policy, and presented the draft at the meeting on the 29th.
For the first time, we have included the introduction of a mechanism called "dynamic pricing," which changes fares depending on the day of the week and the time of day, in order to alleviate the congestion of railways in large cities.
This fare system has already been introduced for airlines and highway buses in Japan, and can be flexibly changed according to supply and demand, such as making the fare cheaper on weekdays than on weekends when there are many users.
Railway operators with routes in large cities are also considering introducing "dynamic pricing" to alleviate congestion, but if the railway fare is to be raised above the set limit, approval from the Ministry of Land, Infrastructure, Transport and Tourism is required.
Since the Ministry of Land, Infrastructure, Transport and Tourism has announced a policy to consider the introduction, it is expected that railway companies will proceed with the examination of specific fares with the introduction in the next few years in mind, but users such as commuting to work or school. It seems that the issue will be whether or not the fare system can be understood.
What is "Dynamic Pricing"?
"Dynamic pricing" is a mechanism that sets a high price when demand for goods and services is high, and lowers the price when demand is low.
It has already been introduced in Japan for airfares, highway bus fares, hotel accommodations, etc.
While it will lead to improved profitability for companies, there is also the issue of whether it will gain the understanding of consumers in the case of price increases.
It has not yet been introduced into rail fares, but JR East and JR West are beginning to consider it.
In order to alleviate congestion during rush hours and prevent the spread of the new coronavirus infection, we would like to introduce "dynamic pricing" to help disperse peaks during commuting to work or school.
However, in the case of railways, if the fare is raised above the set upper limit, approval from the Ministry of Land, Infrastructure, Transport and Tourism is required and it will take some time before it is approved.
For this reason, railway companies have begun a service that gives back points to people who use the train to avoid peak hours.
▽ JR East has already started in the Tokyo metropolitan area from this month,
▽ JR West is in the center of Osaka from next month
▽ Tokyo Metro is scheduled to start from July this year.
After verifying the effects of these efforts, each company plans to proceed with full-scale examinations for the introduction of dynamic pricing.
Expert "Introduction also reduces congestion"
Regarding the consideration of introducing a mechanism called "dynamic pricing" for railway fares in large cities, Nomura Research Institute executive economist Takahide Kiuchi said, "By raising fares during busy hours, congestion can be prevented. It can be expected to have the effect of suppressing the infection of the new corona. Even if there are times when it will be cheaper than it is now, the railway company's income may increase as a whole. "
On top of that, regarding the issues for introduction, "Depending on the time of day, the price may be higher than before and consumers may be dissatisfied. It is explained that the introduction will alleviate congestion and also serve as a corona countermeasure. Isn't it necessary to get a sense of conviction? Also, if the fare rises during rush hours, it can be an opportunity for companies to proceed with staggered work and remote work. "