The way to improve the revenue of high-speed rail corporation in China under commissioned transport model

Abstract

The development of China's high-speed railway has attracted worldwide attention, while its operating performance has failed to meet expectations; revenue stays at a low level, which seriously affects the improvement of high-speed railway companies' competitiveness, the financing for construction and the further development of railway. As the current business model of commissioned transport cannot be changed in the short term, this paper finds that the reason of low revenue is the inconsistency between the marketing revenue body and the responsibility body. Based on the principal-agent theory, this paper puts forward to the joint marketing strategy between the railway administrations of the trustees and the entrusting high-speed rail companies; divides the areas of marketing responsibility and puts forward specific marketing strategies specifically from the perspectives of product, price, distribution and promotion according to the 4Ps theory, to improve passenger transport revenue of high-speed rail companies.