Q: Why are tickets so expensive? A: We are including the following article written by Edward Immel, President of the Northwest Rail Museum, to answer this question.
WELCOME TO THE SHRINKING WORLD OF MAINLINE STEAM EXCURSIONS
The Northwest Rail Museum has been involved in the operation of steam excursions for many years. Our policy has always been to try to keep ticket prices as affordable as possible, but there have been many changes which have had a negative impact on the operational budget for all such excursions.
1. INSURANCE
In the past, we were able to pool our insurance requirements with other groups in order to cover any railroad’s insurance requirements. However, since 9/11 two things have changed: (1) The railroads (for this excursion, BNSF) want at least $150 million in coverage and (2) the insurance industry has undergone major changes (risks) which have increased the amount for the premiums charged. In today’s market, the cost of railroad liability insurance coverage can run between $5,000 and $6,000 per million. As you can see, for a $150 million policy, the premium is $900,000! To operate the 2006 Deschutes Steam Excursion offering 400 seats, each passenger would have had to pay $2,250 just for insurance.
Amtrak has operating agreements with the railroads and the railroads know that Amtrak has the necessary insurance in place to cover their requirements. The NRHS double header last year, the #261’s trips and our trip to Bend are all being operated through a business agreement with Amtrak. However, with the Amtrak advantage for liability insurance comes some disadvantages regarding equipment that can be used.
2. EQUIPMENT
Amtrak requires that all equipment operated under their umbrella meet Amtrak’s requirements for private rail cars. This greatly reduced the pool of equipment we have available to us. In the past we depended upon leasing the Montana Rockies Daylight equipment for most of our passenger needs. However, all of this equipment was sold and the new owners have not decided to go through the expense of meeting Amtrak’s requirements. We do not know if they will pursue that option in the future.
The pool of Amtrak acceptable private cars includes mostly former business cars and sleepers. While all of these cars are nice, they normally have a very low number of seats available. There are only a few coaches, lounges, and dome cars that have a high enough seating capacity to make an excursion such as the Deschutes trip financially feasible. We have secured a ten car train with a seating capacity of about 360 passengers. Our last trip to Bend had a seating capacity of almost 500 passengers. We are now faced with higher costs, but only 72% of the seats we have had available in the past.
In addition to the actual equipment issues, we must also deal with moving them to and from Portland. None of these cars are based in Portland. Deadheading these cars from such places as Los Angeles and St. Louis is very expensive and these costs must be added to the ticket price, as well as the rental fee charged by the owners for the use of their equipment. (If the owners are unable to profit from the lease of their equipment, the pool of equipment will shrink even more in the future.)
3. FUEL
Fuel is also an increasing cost for rail travel, as with all other such transportation. Your next trip to fill your gas tank may give you a hint of what we face. Locomotive #4449 consumes about 12 gallons of fuel per mile (not miles per gallon). Our fuel bill alone for Bend is estimated to cost $13,200. It was just under $6,000 the last time we made this trip.
Planning for this Deschutes Steam Excursion began almost a year ago in order for us to pull all of the pieces together. After several tentative dates which did not work out, we were finally able to schedule the weekend of September 16-17, 2006. We seriously considered not running this trip when we calculated the ticket prices needed to make the operation economically feasible. However, we received encouragement from past riders and decided to go ahead anyway. Results so far have supported our decision to proceed, but it is unfortunate that there is no guarantee that such trips can continue to operate in future years. We believe that passengers on our train through the scenic Deschutes River Canyon to Bend this past September experienced why this is one of the great rail trips in the West with one of the most outstanding remaining steam engines still in operation.
This article may be reprinted if proper credit is given.